FGV Annual Report 2015

194 Felda Global Ventures Holdings Berhad Annual Integrated Report 2015 Notes to the Financial Statements For The Financial Year Ended 31 December 2015 1 GENERAL INFORMATION The Company is principally an investment holding company with investments primarily in oil palm plantation and its related downstream activities, sugar refining, trading, logistics, marketing, rubber processing, research and development activities and related agribusiness activities. The principal activities of the subsidiaries are stated in Note 22 to the financial statements. There have been no significant changes in the nature of these activities of the Group and the Company during the financial year other than as disclosed in Note 56 to the financial statements. The Company is incorporated in Malaysia and listed on the Main Market of Bursa Malaysia Securities Berhad. The registered office and principal place of business of the Company is located at Level 45, Menara Felda, Platinum Park, No.11 Persiaran KLCC, 50088 Kuala Lumpur. 2 BASIS OF PREPARATION The financial statements of the Group and of the Company have been prepared in accordance with the Financial Reporting Standards (“FRS”) and the requirements of the Companies Act, 1965 in Malaysia. The Group includes transitioning entities and has elected to continue to apply FRS during the financial year. The Group will be adopting the new IFRS-compliant framework, Malaysian Financial Reporting Standards (“MFRS”) for annual period beginning on 1 January 2018. In adopting the new framework, the Group will be applying MFRS 1 “First-time adoption of MFRS. The financial statements of the Group and of the Company have been prepared under the historical cost convention unless otherwise indicated in the individual policy statements in Note 3 to the financial statements. The preparation of financial statements in conformity with FRS requires the use of certain critical accounting estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reported period. It also requires Directors to exercise their judgment in the process of applying the Group and Company’s accounting policies. Although these estimates and judgment are based on the Directors’ best knowledge of current events and actions, actual results may differ. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in Note 5. (i) Accounting pronouncements that are effective and have been adopted by the Group and the Company as at 1 January 2015: • Annual Improvements to FRSs 2010 – 2012 Cycle (Amendments to FRS 2 ‘Share-based Payment’, FRS 3 ‘Business Combinations’, FRS 8 ‘Operating Segments’, FRS 13 ‘Fair Value Measurement’, FRS 116 ‘Property, Plant and Equipment’, FRS 124 ‘Related Party Disclosures’ and FRS 138 ‘Intangible Assets’) • Annual Improvements to FRSs 2011 – 2013 Cycle (Amendments to FRS 1 ‘First-time Adoption of Financial Reporting Standards’, FRS 3 ‘Business Combinations’, FRS 13 ‘Fair Value Measurement’ and FRS 140 ‘Investment Property’) • Amendments to FRS 119 ‘Employee Benefits’ - Defined benefit plans: employees contributions The adoption of the Annual Improvements to FRSs 2010 – 2012 Cycle has required additional disclosures about the aggregation of segments. Other than that, the adoption of the above amendments to existing standards did not have any impact on the current or any prior year and are not likely to affect future periods.