cont'd - KNM Steel Sdn Bhd

KNM GROUP BERHAD I Annual Report 2012Notes to the Financial Statements53KNM Group Berhad is a public limited liability company, incorporated and domiciled in Malaysia and is listed onthe Main Market of the Bursa Malaysia Securities Berhad. The addresses of the principal place of business andregistered office are as follows:Registered office and principal place of business15, Jalan Dagang SB 4/1Taman Sungai Besi Indah43300 Seri KembanganSelangor Darul EhsanThe consolidated financial statements of the Company as at and for the year ended 31 December 2012 comprisethe Company and its subsidiaries (together referred to as the “Group” and individually referred to as “Group entities”)and the Group’s interest in associates and jointly-controlled entities. The financial statements of the Company as atand for the year ended 31 December 2012 do not include other entities.The Company is principally engaged in investment holding activities and provision of management services, whilstthe principal activities of the subsidiaries are as stated in Note 31 to the financial statements.These financial statements were authorised for issue by the Board of Directors on 30 April 2013.1. Basis of preparation(a)Statement of complianceThe financial statements of the Group and the Company have been prepared in accordance withMalaysian Financial Reporting Standards (“MFRS”), International Financial Reporting Standards andthe requirements of the Companies Act, 1965 in Malaysia. These are the Group and the Company’s firstfinancial statements prepared in accordance with MFRS and MFRS 1, First-time Adoption of MalaysianFinancial Reporting Standards has been applied.In the previous financial years, the financial statements of the Group and the Company were preparedin accordance with Financial Reporting Standards (“FRS”). The financial impacts on transition to MFRSare disclosed in Note 36.The following are accounting standards, amendments and interpretations of the MFRS framework thathave been issued by the Malaysian Accounting Standards Board (“MASB”) but have not been adoptedby the Group and the Company:MFRS, Interpretations and amendments effective for annual periods beginning on or after 1 July2012• Amendments to MFRS 101, Presentation of Items of Other Comprehensive Income (Amendmentsto MFRS 101)MFRS, Interpretations and amendments effective for annual periods beginning on or after 1January 2013• MFRS 10, Consolidated Financial Statements• MFRS 11, Joint Arrangements• MFRS 12, Disclosure of Interests in Other Entities• MFRS 13, Fair Value Measurement• MFRS 119, Employee Benefits (2011)• MFRS 127, Separate Financial Statements (2011)• MFRS 128, Investments in Associates and Joint Ventures (2011)• IC Interpretation 20, Stripping Costs in the Production Phase of a Surface Mine• Amendments to MFRS 7, Financial Instruments: Disclosures – Offsetting Financial Assets andFinancial Liabilities• Amendments to MFRS 1, First-time Adoption of Malaysian Financial Reporting Standards –Government Loans• Amendments to MFRS 1, First-time Adoption of Malaysian Financial Reporting Standards (AnnualImprovements 2009-2011 Cycle)