2018 UEM Edgenta Annual Report

1. CORPORATE INFORMATION The Company is a public limited liability company, incorporated and domiciled in Malaysia, and is listed on the Main Market of Bursa Malaysia Securities Berhad. The registered office of the Company is located at Level 17, Menara UEM, Tower 1, Avenue 7, The Horizon, Bangsar South City, No. 8 Jalan Kerinchi, 59200 Kuala Lumpur. The Company regards UEM Group Berhad and Khazanah Nasional Berhad, both incorporated in Malaysia, as its immediate and ultimate holding companies respectively. Related companies in these financial statements refer to member companies within the UEM Group of companies. The principal activities of the Company are investment holding and provision of management services to its subsidiaries. The principal activities of the subsidiaries, joint ventures and associates are described in Note 45. There have been no significant changes in the nature of the principal activities during the financial year. The financial statements were authorised for issue by the Board of Directors in accordance with a resolution of the directors on 22 March 2019. 2. SIGNIFICANT ACCOUNTING POLICIES 2.1 Basis of preparation The financial statements of the Group and of the Company have been prepared in accordance with Malaysian Financial Reporting Standards (“MFRS”), International Financial Reporting Standards (“IFRS”) and the requirements of the Companies Act 2016 in Malaysia. For all periods up to and including the year ended 31 December 2017, the Group and the Company prepared their financial statements in accordance with Financial Reporting Standards (“FRS”) in Malaysia. These financial statements for the year ended 31 December 2018 are the first the Group and the Company have prepared in accordance with MFRS, IFRS and the requirements of the Companies Act 2016 in Malaysia. The effects of the first-time adoption of MFRS Framework are disclosed in Note 2.2. The financial statements of the Group and of the Company have also been prepared on a historical cost basis except as disclosed in the accounting policies below. The financial statements are presented in Ringgit Malaysia (“RM”) and all values are rounded to the nearest thousand (RM’000) except when otherwise indicated. 2.2 First time adoption of Malaysian Financial Reporting Standards (“MFRS”) On 19 November 2011, Malaysian Accounting Standards Board (“MASB”) issued a new MASB approved accounting framework, the MFRS Framework. The MFRS Framework has been applied by all Entities Other Than Private Entities for annual periods beginning on or after 1 January 2012, with the exception of entities that are within the scope of MFRS 141 Agriculture and IC 15 Agreements for Construction of Real Estate, including its parent, significant investor and venturer (herein called ‘Transitioning Entities’). These financial statements, for the year ended 31 December 2018, are the first set of financial statements of the Group and the Company that have been prepared in accordance with MFRS and MFRS 1 First Time Adoption of Malaysian Financial Reporting Standards have been applied. NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2018 Financial Review Stakeholder Information AGM Information 155 Governance Review of Sustainability Activities