FINANCIAL STATEMENTS DECODED The purpose of financial statements is to communicate the Group’s financial information to its stakeholders, especially shareholders, investors and lenders. In this section, we try to help readers who are not familiar with accounting rules and financial expressions to understand our financial information, by explaining the functions and relationships between the essential financial statements: the statements of profit or loss and other comprehensive income, the statements of financial position and the statements of cash flows. For comprehensive and authoritative definitions and explanations, readers should turn to the relevant accounting standards, but we hope this section offers useful guidance. These statements comprise (a) profit or loss and (b) other comprehensive income (OCI). The objective of these statements is to present all income or expenses (transactions with non-owners) in a performance statement. OCI represents certain income and expenses which are not recognised in profit or loss as required or permitted by the relevant accounting standards. Transactions with owners such as dividends are presented in the statements of changes in equity. Statements of Profit or Loss and Other Comprehensive Income These statements sum up the Group’s and the Company’s economic resources (total assets), obligations (debts and other liabilities) and owners’ equity at a particular point of time, in this case, our year end is at 31 December 2024. It also shows how the economic resources contributed by lenders and shareholders are used in the business. In the past, we used to call these statements a “balance sheet” because at any given time, assets must equal liabilities plus owners’ equity (in other words, be in balance). The current name reflects its function more accurately. Statements of Financial Position These statements divide the cash flows into operating, investing and financing cash flows. While the operating profit underlies the operating cash flows, certain noncash charges or credits, such as depreciation and amortisation, are adjusted for, thus the operating cash flows and the operating profit are different. Investing cash flows are the cash flows arising from the purchase or disposal of non-current assets. Financing cash flows represent the cash flows between its shareholders and lenders. Statements of Cash Flows Financial performance measured by recording the flow of resources over a period of time A snapshot taken at a point in time of all the assets the company owns and all the claims against those assets Where the company gets its cash and how it spends it UEM EDGENTA BERHAD 260 Integrated Annual Report 2024 Approaching The Financial Statements
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