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 Statements (continued)For the financial period of seventeen months ended 31 December 200024 CONSTRUCTION CONTRACTSGroup31.12.2000 31.7.1999RMRMAggregate costs incurred to date 9,889,345 –Add: Attributable profits recognised 1,260,041 –11,149,386 –Less: Progress billings to date (13,106,050) –(1,956,664) –Amount due to customer on contracts (Note 20) (1,956,664) –25 PRIOR YEAR ADJUSTMENTDuring the financial period, the Group and the Company changed its accounting policy with respect to the recognitionof deferred expenditure, which comprises preliminary and pre-operating expenses, in the financial statements incompliance with the MASB Interpretation Bulletin 1 “Preliminary and Pre-Operating Expenditure”.In previous financial years, deferred expenditure was stated at cost and was amortised through the income statementover a period of five years upon commencement of operations.The Group and the Company have changed this accounting policy to recognise deferred expenditure as an expense inthe financial period in which it is incurred.This change in accounting policy has been accounted for retrospectively.Comparative information have been restated to conform with this change in accounting policy. This change inaccounting policy has the effect of increasing the net profit of the Group for the financial period ended 31 December2000 by RM996,506. The other effects of this change on the Group’s financial statements are as follows:As Effectpreviously of change Asreported in policy restatedGroup RM RM RMRetained earnings as at 31 July 1998 158,216,093 (2,329,270) 155,886,823Net profit attributable to shareholdersfor the financial year ended 31 July 1999 31,394,441 533,457 31,927,898Profit attributable to minority interestfor the financial year ended 31 July 1999 697,680 161,999 859,679Retained earnings as at 31 July 1999 173,872,347 (1,795,813) 172,076,534Deferred expenditure as at 31 July 1999 1,795,813 (1,795,813) –Minority interest as at 31 July 1999 37,368,072 (485,187) 36,882,88560