Eng - IOI Group

Notes To The Financial Statements1. PRINCIPAL ACTIVITIESThe principal activities of the Company consist of investment holding and the cultivation of oil palm and processing of palm oil.The principal activities of the subsidiaries and associates are set out in Note 51 to the financial statements.There have been no significant changes in the nature of the activities of the Group and of the Company during the financial year.2. BASIS OF PREPARATION OF FINANCIAL STATEMENTS2.1 Statement of complianceThe financial statements of the Group and the Company have been prepared in accordance with the applicable approvedFinancial Reporting Standards (“FRSs”) in Malaysia and the provisions of the Companies Act, 1965.On 1 July 2006, the Group and the Company adopted new and revised FRSs which are mandatory for the periods beginningon or after 1 January 2006 and those that are relevant to the Group and the Company as disclosed in Note 3.1.2.2 Basis of measurementThe financial statements of the Group and of the Company have been prepared under the historical cost convention exceptfor investment properties which have been measured at fair value.2.3 Presentation currencyThe financial statements are presented in Ringgit Malaysia (“RM”) and all financial information presented in RM are roundedto the nearest thousand (RM’000), except when otherwise stated.2.4 Use of estimates and judgementsThe preparation of financial statements requires the Directors to make estimates and assumptions that affect the reportedamounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statementsand the reported amounts of revenues and expenses during the financial year. In addition, the Directors are also required toexercise their judgement in the process of applying the Group’s accounting policies. The areas involving such judgements,estimates and assumptions are disclosed in Note 4.Judgements, estimates and assumptions are assessed on an ongoing basis. Although these estimates and assumptions arebased on the Directors’ best knowledge of current events and actions, it is subject to risks and uncertainties and hence actualresults may differ from these estimates.131ANNUAL REPORT 2007IOI Corporation Berhad