MSM Malaysia Holdings Berhad Annual Report 2020

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020 1 GENERAL 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 21, Wisma FGV, Jalan Raja Laut, 50350 Kuala Lumpur. The principal place of business of the Company is located at Level 44, Menara Felda, Platinum Park, No 11, Persiaran KLCC, 50088 Kuala Lumpur. The principal activity of the Company is investment holding. The principal activities of the subsidiaries are set out in Note 20 of the financial statements. There have been no significant changes in the nature of these activities during the financial year. The immediate holding company is FGV Holdings Berhad (“FGVH”), a company incorporated and domiciled in Malaysia, and listed on the Main Market of Bursa Malaysia Securities Berhad. The ultimate holding body is Federal Land Development Authority (“FELDA”), a body set up under the Land Development Act 1956. 2 BASIS OF PREPARATION The financial statements of the Group and of the Company have been prepared in accordance with the Malaysian Financial Reporting Standards (“MFRS”), International Financial Reporting Standards (“IFRS”) and the requirements of the Companies Act 2016 in Malaysia. The financial statements of the Group and of the Company have been prepared under the historical cost convention unless otherwise indicated in the individual policy statements in Note 3 to the financial statements. The preparation of financial statements in conformity with MFRS requires the use of certain critical accounting estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the financial period. It also requires Directors to exercise their judgement in the process of applying the Group and Company’s accounting policies. Although these estimates and judgement are based on the Directors’ best knowledge of current events and actions, actual results may differ. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in Note 5. (i) The Group and Company have applied the following standards and amendments for the first time for the financial year beginning on 1 January 2020: • The Conceptual Framework for Financial Reporting (Revised 2018) • Amendments to MFRS 101 and MFRS 108 ‘Definition of Material’ • Amendments to MFRS 3 ‘Definition of a Business’ • Amendments to MFRS 9, MFRS 139 and MFRS 7 ‘Interest Rate Benchmark Reform’ The Group and Company have elected to apply the amendments to MFRS 16 ‘COVID-19-Related Rent Concessions’ during the financial year. The amendments listed above did not have significant impact on the amounts recognised in prior periods and are not expected to significantly affect the current or future periods. MSM MALAYSIA HOLDINGS BERHAD Annual Repor t 2020 144 CHAIRMAN’S STATEMENT DELIVERING VALUE MSM OVERVIEW MANAGEMENT DISCUSSION & ANALYSIS GROUP FINANCIAL REPORT