Directors - Boustead Holdings Berhad

Accounting Policies
(a) BASIS OF PREPARATION
The financial statements of the Group and the Company are prepared under the historical cost
convention unless otherwise indicated in the accounting policies below, and comply with applicable
MASB Approved Accounting Standards in Malaysia for Entities Other Than Private Entities and the
provisions of the Companies Act, 1965.
At the beginning of the financial year, the Group and the Company had adopted new and revised FRSs
which are mandatory for financial periods beginning on or after 1 January 2006 as described fully in
Note 2.
The financial statements are presented in Ringgit Malaysia (RM) and all values are rounded to the nearest
thousand (RM’000) except when otherwise stated.
(b) BASIS OF CONSOLIDATION
The consolidated financial statements incorporate the audited financial statements of the Company and
its Subsidiaries made up to the end of the year. Subsidiaries are companies in which the Group has the
ability to control the financial and operating policies so as to obtain benefits from their activities. The
existence and effects of potential voting rights that are currently exercisable or convertible are considered
when assessing whether the Group has such power over another entity. Details of Subsidiaries are given
on pages 140 to 142.
Subsidiaries are consolidated from the date of their acquisition, being the date on which the Group
obtains control, and continue to be consolidated until the date that such control ceases. The financial
statements of Subsidiaries are prepared for the same reporting date as the Company, and uniform
accounting policies are adopted in the consolidated financial statements for like transactions and events
in similar circumstances. All inter-company balances and transactions, including unrealised profits or
losses arising from them are eliminated.
Acquisitions of Subsidiaries are accounted for using the purchase method. At the date of acquisition, the
fair values of the Subsidiaries’ assets acquired and liabilities and contingent liabilities assumed are
determined and these values are reflected in the consolidated financial statements. The cost of an
acquisition is measured as the aggregate of the fair values, at the date of exchange, of the assets given,
liabilities incurred or assumed, and equity instruments issued, plus any costs directly attributable to the
acquisition. The excess of the acquisition cost over the Group’s interest in these fair values is reflected
as goodwill. The excess of the Group’s interest in these fair values over the acquisition cost represents
negative goodwill, which is recognised immediately in profit or loss.
Minority interests represent the portion of profit or loss and net assets in Subsidiaries that is not held
by the Group and is presented separately within equity in the consolidated balance sheet. It is measured
at the minorities’ share of the fair value of the Subsidiaries’ identifiable assets and liabilities at the
acquisition date and the minorities’ share of changes in the Subsidiaries’ equity since then.
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