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Notes to the Financial StatementsFOR THE FINANCIAL YEAR ENDED 31 DECEMBER 20093. BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS (CONTINUED)(c)Standards, amendments to published standards and IC interpretation that are not relevant and not yet effectivefor the Group’s and Company’s operations• The amendment to FRS 1 “First-time Adoption of Financial Reporting Standards” and FRS 127 “Consolidatedand Separate Financial Statements: Cost of an Investment in a Subsidiary, Jointly Controlled Entity orAssociate”.• FRS 4 “Insurance Contract”.• IC Interpretation 12 “Service Concession Arrangements”.• IC Interpretation 15 “Agreements for Construction of Real Estates”.• FRS 129 “Financial Reporting in Hyperinflationary Economies”.4. SIGNIFICANT ACCOUNTING POLICIES(a)Economic entities in the Group(i) SubsidiariesSubsidiaries are those companies or other entities (including special purpose entities) in which the Group haspower to exercise control over the financial and operating policies so as to obtain benefits from theiractivities, generally accompanying a shareholding of more than one half of the voting rights. The existenceand effect of potential voting rights that are currently exercisable or convertible are considered whenassessing whether the Group controls another entity.Subsidiaries are consolidated using the purchase method of accounting except for certain businesscombinations which were accounted for using the predecessor method of merger accounting, as follows:• subsidiaries that were consolidated prior to 1 April 2002 in accordance with Malaysian AccountingStandard 2 “Accounting for Acquisitions and Mergers”, the generally accepted accounting principlesprevailing at that time.• business combinations consolidated on/after 1 April 2002 but with agreement dates before 1 January2007 that meet the conditions of a merger as set out in FRS 122 2004“Business Combinations”.• internal group reorganisations, as defined in FRS 122 2004, consolidated on/after 1 April 2002 but withagreement dates before 1 January 2007 where:– the ultimate shareholders remain the same, and the rights of each such shareholder, relative to theothers, are unchanged; and– the minorities’ share of net assets of the Group is not altered by the transfer• business combinations involving entities or businesses under common control with agreement dates on/after 1 January 2007.Annual Report 2009 • 177