ANNUAL REPORT 2008 - KNM Steel Sdn Bhd

NOTES TO THE
FINANCIAL STATEMENTS
KNM Group Berhad is a public limited liability company, incorporated and domiciled in Malaysia and is listed on the
Main Board of the Bursa Malaysia Securities Berhad. The addresses of the principal place of business and registered
office are as follows:
Registered office and principal place of business
15, Jalan Dagang SB 4/1
Taman Sungai Besi Indah
43300 Seri Kembangan
Selangor Darul Ehsan
The consolidated financial statements as at and for the year ended 31 December 2008 comprise the Company and
its subsidiaries (together referred to as the Group) and the Group’s interest in associates. The financial statements
of the Company as at and for the year ended 31 December 2008 do not include other entities.
The Company is principally engaged in investment holding activities and provision of management services, whilst
the principal activities of the subsidiaries are as stated in Note 31 to the financial statements.
The financial statements were approved by the Board of Directors on 28 April 2009.
1. Basis of preparation
(a)
Statement of compliance
The financial statements of the Group and of the Company have been prepared in accordance with
Financial Reporting Standards (FRS), accounting principles generally accepted and the Companies Act,
1965 in Malaysia. These financial statements also comply with the applicable disclosure provisions of
the Listing Requirements of the Bursa Malaysia Securities Berhad.
The Group and the Company have not applied the following accounting standards (including its
consequential amendments) and interpretations that have been issued by the Malaysian Accounting
Standards Board (MASB) but are not yet effective:
FRSs / Interpretations
Effective date
FRS 4, Insurance Contracts 1 January 2010
FRS 7, Financial Instruments: Disclosures 1 January 2010
FRS 8, Operating Segments 1 July 2009
FRS 139, Financial Instruments: Recognition and Measurement 1 January 2010
IC Interpretation 9, Reassessment of Embedded Derivatives 1 January 2010
IC Interpretation 10, Interim Financial Reporting and Impairment 1 January 2010
The Group and the Company plan to apply the abovementioned FRSs / Interpretations from the
annual period beginning 1 January 2010 except for FRS 4 which is not applicable to the Group and the
Company.
The impact of applying FRS 7 and FRS 139 on the financial statements upon first adoption as required
by paragraph 30(b) of FRS 108, Accounting Policies, Changes in Accounting Estimates and Errors is
not disclosed by virtue of the exemptions given in the respective FRSs. Other than the implications as
discussed below, the initial application of the above standards (and its consequential amendments) and
interpretations is not expected to have any material impact on the financial statements of the Group and
the Company.
KNM GROUP BERHAD
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ANNUAL REPORT 2008