MAA Assurance's Annual Report 2005 - Zurich

Notes To The Financial Statements - 31 December 2005
1 PRINCIPAL ACTIVITIES AND GENERAL INFORMATION
The Company is engaged principally in the underwriting of life insurance business, including investment-linked and
annuity business, and all classes of general insurance business. There have been no significant changes in the nature
of these activities during the financial year.
The Company is a public limited liability company, incorporated and domiciled in Malaysia.
The registered office and principal place of business of the Company are as follows:
Registered office
Suite 20.03, 20th Floor
Menara MAA
12, Jalan Dewan Bahasa
50460 Kuala Lumpur
Principal place of business
11th Floor, Menara MAA
12, Jalan Dewan Bahasa
50460 Kuala Lumpur
The holding company and the company regarded by the directors as the ultimate holding company is MAA Holdings
Berhad, a company incorporated in Malaysia.
The number of employees as at the end of the financial year in the Company was 1,356 (2004:1,319).
The financial statements were authorised for issue by the Board of Directors in accordance with a resolution of the
Directors on 24 March 2006.
2 SIGNIFICANT ACCOUNTING POLICIES
The following accounting policies have been used consistently in dealing with items which are considered material in
relation to the financial statements.
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(a) Basis of preparation
The financial statements of the Company have been prepared under the historical cost convention modified by
the valuation of investments in the investment-linked business at market value, and comply with MASB approved
accounting standards in Malaysia, the provisions of the Companies Act, 1965, the Insurance Act, 1996 and
relevant Guidelines and Circulars issued by Bank Negara Malaysia (“BNM”) in all material aspects.
The preparation of financial statements in conformity with MASB approved accounting standards in Malaysia
requires the use of 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 financial year. Although these estimates are based on the
Directors’ best knowledge of current events and actions, actual results may differ from estimates.
(b) Property, plant and equipment
Property, plant and equipment are stated at cost less accumulated depreciation and impairment losses.
Depreciation of property, plant and equipment is provided so as to write off the cost of each asset on a straight
line basis over the estimated useful life of the assets. The annual depreciation rates are as follows:
Furniture, fittings and equipment 10% - 20%
Motor vehicles 10%
Renovation 10%
At each balance sheet date, the Company assesses whether there is any indication of impairment. If such
indications exist, an analysis is performed to assess whether the carrying amount of the asset is fully recoverable.
A write down is made if the carrying amount exceeds the recoverable amount. See accounting policy Note 2(e)
on impairment of assets.