L a p o r a n T a h u n a n 2 0 0 0 A n n u a l R e p o r t - ChartNexus

Notes to the Financial StatementsFor the financial period of seventeen months ended 31 December 20001 GENERAL INFORMATIONThe principal activities of the Company are investment holding and the provision of management services.The principal activities of the subsidiary companies are set out in Note 11 to the financial statements.2 CHANGE IN ACCOUNTING REFERENCE DATEThe financial year end of the Company was changed from 31 July to 31 December so as to be co-terminuouswith the financial year end of its major shareholders, PERNAS International Holdings Berhad and CapitaLandLimited. Accordingly, comparative amounts for the income statement, changes in equity, cash flows and relatednotes are not comparable.3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESThe following accounting policies have been used consistently in dealing with items which are considere dmaterial in relation to the financial statements.(a)Basis of preparationThe financial statements of the Group and of the Company have been prepared under the historical costconvention (as modified to include the revaluation of certain property, plant and equipment and investmentin a subsidiary company), unless otherwise indicated in this summary of significant accounting policies.The financial statements comply with the applicable approved accounting standards in Malaysia and theprovisions of the Companies Act, 1965.(b)Basis of consolidationThe consolidated financial statements include the financial statements of the Company and all its subsidiarycompanies made up to the end of the financial period. Subsidiary companies are those companies in whichthe Group has power to exercise control over the financial and operating policies so as to obtain benefitsfrom their activities.Subsidiary companies are consolidated from the date on which control is transferred to the Group and areno longer consolidated from the date that control ceases. Subsidiary companies are consolidated using theacquisition method of accounting except for a subsidiary company which is consolidated using the mergermethod of accounting in accordance with Malaysian Accounting Standard No. 2 “Accounting forAcquisitions and Mergers”, as disclosed in Note 11 to the financial statements.Under the acquisition method of accounting, the results of subsidiary companies acquired or disposed ofduring the financial period are included from the date of acquisition up to the date of disposal. At the dateof acquisition, the fair values of the subsidiary companies’ net assets are determined and these values arereflected in the consolidated financial statements. The difference between the acquisition cost and the fairvalues of the subsidiary companies’ net assets is reflected as goodwill on consolidation.Under the merger method of accounting, the results of the subsidiary companies are presented as if themerger had been effected throughout the current and previous financial years. On consolidation, thedifference between the carrying value of the investment over the nominal value of the shares acquired istaken to merger reserve.All intercompany transactions, balances and unrealised gains on transactions between group companies areeliminated; unrealised losses are also eliminated unless costs cannot be recovered in which case such costsare charged to the income statement immediately. Where necessary, accounting policies for subsidiarycompanies have been changed to ensure consistency with the policies adopted by the Group. Separatedisclosure is made of minority interests.UNITED MALAYAN LAND BHD43