Kimlun Corporation Berhad Annual Report 2017

Annual Report 2017 73 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2017 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 principal place of business of the Company is located at Suite 19.06, Level 19, Johor Bahru City Square, 106 - 108, Jalan Wong Ah Fook, 80000 Johor Bahru, Johor Darul Ta’zim. The principal activity of the Company is investment holding. The principal activities and other information of the subsidiaries are disclosed in Note 15 to the financial statements. 2. Summary of significant accounting policies 2.1 Basis of preparation The financial statements of the Group and of the Company have been prepared in accordance with Financial Reporting Standards and the requirements of the Companies Act 2016 in Malaysia. The financial statements have been prepared on the historical cost basis and presented in Ringgit Malaysia (“RM”). 2.2 Changes in accounting policies The accounting policies adopted are consistent with those of the previous financial year except as follows: On 1 January 2017, the Group and the Company adopted the following new and amended FRS and IC Interpretations mandatory for annual financial periods beginning on or after 1 January 2017. Effective for annual periods Description beginning on or after FRS 107 Disclosure Initiative (Amendments to FRS 107) 1 January 2017 FRS 112, Recognition of Deferred Tax Assets for Unrealised Losses (Amendments to FRS 112) 1 January 2017 Annual Improvements to FRS Standards 2014–2016 Cycle - Amendments to FRS 12 Disclosure of Interests in Other Entities: Clarification of the scope of disclosure requirements in MFRS 12 1 January 2017 Adoption of the above new standards and amended FRSs and Annual Improvements did not have any effect on the financial performance or position of the Group and of the Company. 2.3 Malaysian Financial Reporting Standards (‘’MFRS’’) The Group and the Company will be required to prepare financial statements using the MFRS Framework in its first MFRS financial statements for the year ending 31 December 2018. The directors are of the opinion that the financial performance and financial position as disclosed in these financial statements for the year ended 31 December 2017 would not be significantly different if prepared under the MFRS Framework. 2.4 Current versus non-current classification Assets and liabilities in the statements of financial position are presented based on current/non- current classification. An asset is current when it is: • Expected to be realised or intended to be sold or consumed in normal operating cycle; • Held primarily for the purpose of trading; • Expected to be realised within twelve months after the reporting period; or • Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period. All other assets are classified as non-current. A liability is current when: • It is expected to be settled in normal operating cycle; • It is held primarily for the purpose of trading; • It is due to be settled within twelve months after the reporting period; or • There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.