Chemical Company of Malaysia Berhad Annual Report 2018

Notes to the Financial Statements 1. BASIS OF PREPARATION (CONTINUED) (c) Functional and presentation currency These financial statements are presented in Ringgit Malaysia (“RM”), which is the Company’s functional currency. All financial information is presented in RM and has been rounded to the nearest thousand, unless otherwise stated. (d) Use of estimates and judgements The preparation of the financial statements in conformity with MFRSs requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected. There are no significant areas of estimation uncertainty and critical judgements in applying accounting policies that have significant effect on the amounts recognised in the financial statements other than those disclosed in the following notes: • Note 4 - valuation of investment properties • Note 5 - measurement of the recoverable amounts of cash-generating units • Note 25 - measurement of expected credit loss (“ECL”) 2. SIGNIFICANTACCOUNTING POLICIES The accounting policies set out below have been applied consistently to the periods presented in these financial statements and have been applied consistently by Group entities, unless otherwise stated. Arising from the adoption of MFRS 15, Revenue from Contracts with Customers and MFRS 9, Financial Instruments , there are changes to the accounting policies of: i) financial instruments; ii) revenue recognition; and iii) impairment losses of financial instruments as compared to those adopted in previous financial statements. The impacts arising from the changes are disclosed in Note 31. (a) Basis of consolidation (i) Subsidiaries Subsidiaries are entities, including structured entities, controlled by the Company. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. 116 ANNUAL REPORT 2018