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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 and the provisions of the Companies Act, 1965.
During the current financial year ended 31 December 2004, the Group adopted MASB 32, Property
Development Activities for the first time. The adoption of MASB 32 has not given rise to any adjustments
to the opening balances of retained profits of the prior and current year or to changes of comparatives.
(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 owns, directly
or indirectly, more than 50% of the equity share capital and has control over its financial and operating
policies so as to obtain benefits from its activities. Details of Subsidiaries are given on pages 139 to 142.
The results of Subsidiaries acquired or disposed during the year are included from or to the effective
dates of acquisition or disposal respectively, using the acquisition method of accounting. At the date of
acquisition, the fair values of the Subsidiaries’ net assets are determined and these values are reflected
in the consolidated financial statements. The difference between the acquisition cost and these fair values
is reflected as goodwill or reserve on consolidation and is systematically amortised on a straight line basis
over a period of time not exceeding 20 years during which the benefits are expected to arise. The reserve
on consolidation is recognised to the extent of the future losses and expenses that are identified in the
acquirer’s plan for the acquisition, and is recognised as income in the income statement when the future
losses and expenses are recognised.
Intragroup transactions, balances and resulting unrealised gains are eliminated on consolidation and the
consolidated financial statements reflect external transactions only. Unrealised losses are eliminated on
consolidation unless costs cannot be recovered. The gain or loss on disposal of Subsidiaries is the
difference between net disposal proceeds and the Group’s share of the net assets together with any
unamortised balance of goodwill/reserve on consolidation and other reserves which were not previously
recognised in the consolidated income statement.
Minority interest is measured at the minorities’ share of the post acquisition fair values of the identifiable
assets and liabilities of the acquirees.
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