Eng - IOI Group

notestothefinancialstatements1 PRINCIPAL ACTIVITIESThe principal activities of the Company consist of investment holding and the cultivation of oil palm and rubberand processing of palm oil and rubber.The principal activities of the subsidiaries and associates are set out in Note 44 to the financial statements.There have been no significant changes in the nature of the activities of the Group and of the Company during thefinancial year except for the acquisition of Loders Croklaan B. V. and the related businesses as disclosed in Note 34.1to the financial statements.2 BASIS OF PREPARATION OF FINANCIAL STATEMENTSThe financial statements of the Group and of the Company have been prepared in accordance with the applicableapproved accounting standards in Malaysia and the provisions of the Companies Act, 1965.The preparation of financial statements in conformity with the applicable approved accounting standards inMalaysia and the provisions of the Companies Act, 1965 require the Directors to make estimates and assumptionsthat affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities atthe date of the financial statements and the reported amounts of revenues and expenses during the financial year.Actual results could differ from those estimates.3 SIGNIFICANT ACCOUNTING POLICIESDuring the current financial year, the Group and the Company adopted the following new Malaysian AccountingStandard Board (“MASB”) Standards:MASB 22, Segment Reporting, which has been adopted retrospectively. Comparative segmental information hasbeen re-presented to conform with the requirements of this standard;MASB 23, Impairment of Assets, which has been applied prospectively. The adoption of this standard has nomaterial impact on the financial statements;MASB 24, Financial Instruments: Disclosure and Presentation, which has been adopted prospectively;MASB 25, Income Taxes, which has been adopted retrospectively. Comparatives have been adjusted to reflect thechange in this accounting policy and the effects of the change in accounting policy are disclosed in Note 45; andMASB 27, Borrowing Costs, which has been applied retrospectively. The adoption of this standard has no materialimpact on the financial statements as the previous accounting policy was in line with the new accountingstandard.Further information on changes in accounting policies and prior year adjustments are disclosed in Note 45 to thefinancial statements.137IOI Corporation BerhadAnnual Report 2003