annual report - Tenaga Nasional Berhad

Notes to the Financial Statements31 August 20081 GENERAL INFORMATIONThe Group and the Company are primarily involved in the business of the generation, transmission, distribution and saleof electricity and those tabulated in Note 15 to these financial statements.There have been no significant changes in these activities during the financial year.The Company is a public limited liability company, incorporated and domiciled in Malaysia and listed on the Main Boardof Bursa Malaysia Securities Berhad.The address of the registered office of the Company is 129, Jalan Bangsar, 59200 Kuala Lumpur, Malaysia.2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESUnless otherwise stated, the following accounting policies have been applied consistently in dealing with items that areconsidered material in relation to the financial statements. These policies have been consistently applied to all the yearspresented, unless otherwise stated.(a)Basis of preparationThe financial statements of the Group and the Company have been prepared in accordance with the provisions ofthe Companies Act 1965 and Financial Reporting Standards (‘FRS’), the MASB Approved Accounting Standards inMalaysia for Entities Other than Private Entities.The financial statements have been prepared under the historical cost convention except as disclosed in thissummary of significant accounting policies.The preparation of financial statements in conformity with FRS, requires the use of certain critical accountingestimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingentassets and liabilities at the date of the financial statements, and the reported amounts of revenues and expensesduring the reported period. It also requires Directors to exercise their judgement in the process of applying theGroup’s accounting policies. Although these estimates and judgement are based on the Directors’ best knowledgeof current events and actions, actual results may differ.The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates aresignificant to the financial statements, are disclosed in Note 3 to these financial statements.(i)Standards, amendments to published standards and interpretations that are effective and applicable.The new accounting standards, amendments to published standards and interpretations to existing standardseffective and applicable for the Group’s and the Company’s financial periods beginning on or after 1 September2007 are as follows:FRS 107 – Cash Flow StatementsFRS 111 – Construction ContractsFRS 112 – Income TaxesFRS 118 – RevenueFRS 124 – Related Party DisclosuresFRS 137 – Provisions, Contingent Liabilities and Contingent Assets[ Tenaga Nasional Berhad ] [ Annual Report 2008 ]187