Kimlun Corporation Berhad Annual Report 2018

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 on 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 for the year ended 31 December 2018 of the Group and the Company have been prepared in accordance with Malaysia Financial Reporting Standards ("MFRS"), International Financial Reporting Standards ("IFRS") and the requirements of the Companies Act 2016 in Malaysia. For all periods up to and including the year ended 31 December 2017, the Group and the Company prepared their financial statements in accordance with Financial Reporting Standards ("FRS") in Malaysia. These financial statements for the year ended 31 December 2018 are the first that the Group and the Company have prepared in accordance with MFRS and MFRS 1 First-time Adoption of Malaysian Financial Standards has been applied. In preparing its opening MFRS statements of financial position as at 1 January 2017 (which is also the date of transition), the Group and the Company have reassessed the current accounting policies and any change in accounting policy was applied retrospectively. The Group and the Company have consistently applied the same accounting policies in its opening MFRS statement of financial position as at 1 January 2017 and throughout all comparable periods presented, as if these policies had always been in effect. The adoption of MFRS and IFRS has not had a material impact on the comparative period presented, hence, comparative information in these financial statements have not been restated. The financial statements of the Group and of the Company have been prepared on the historical cost basis. The financial statements are presented in Ringgit Malaysia (RM) except when otherwise indicated. 2.2 Standards, IC interpretation, Amendments and Annual Improvements issued but not yet effective The Standards, Amendments, Annual Improvements and IC interpretation that are issued but not yet effective up to the date of issuance of the Group's financial statements are disclosed below. The Group intends to adopt these Standards, Amendments, Annual Improvements and IC Interpretations, if applicable, when they become effective. Effective for annual periods Description beginning on or after MFRS 9 Prepayment Features with Negative Compensation (Amendments to MFRS 9) 1 January 2019 MFRS 16 Leases 1 January 2019 MFRS 128 Long-term Interests in Associates and Joint Ventures (Amendments to MFRS 128) 1 January 2019 Annual Improvements to MFRS Standards 2015–2017 Cycle 1 January 2019 MFRS 119 Plan Amendment, Curtailment or Settlement (Amendments to MFRS 119) 1 January 2019 IC Interpretation 23 Uncertainty over Income Tax Treatments 1 January 2019 Amendments to references to the Conceptual Framework in MFRS Standards 1 January 2020 Amendments to MFRS 3 Business Combinations - Definition of a Business 1 January 2020 Amendments to MFRS 101 Presentation of Financial Statements and MFRS 108 Accounting Policies, Changes in Accounting Estimates and Errors - Definition of Material 1 January 2020 MFRS 17 Insurance Contracts 1 January 2021 Amendments to MFRS 10 and MFRS 128: Sale or Contribution of Assets between an Investor and its Associate or Joint Venture Deferred Kimlun Corporation Berhad 73 NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 December 2018