1. CORPORATE INFORMATION Tropicana Corporation Berhad (“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 registered office and principal place of business of the Company is located at Unit 1301, Level 13, Tropicana Gardens Office Tower, No. 2A, Persiaran Surian, Tropicana Indah, 47810 Petaling Jaya, Selangor Darul Ehsan. The principal activities of the Company are investment holding and provision of management services. The principal activities of the subsidiaries, associate and joint ventures are disclosed in Notes 18, 19 and 20 respectively. There have been no significant changes in the nature of these principal activities during the financial year. The financial statements were authorised for issue by the Board of Directors in accordance with a resolution of the directors on 21 April 2022. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 2.1 Basis of preparation The financial statements of the Group and of the Company have been prepared in accordance with the Malaysian Financial Reporting Standards (“MFRS”), International Financial Reporting Standards (“IFRS”) and the requirements of the Companies Act 2016 in Malaysia. The financial statements have been prepared on the historical cost basis except as disclosed in the accounting policies below. The financial statements are presented in Ringgit Malaysia (“RM”) and all values are rounded to the nearest thousand (RM’000) except when otherwise indicated. 2.2 Changes in accounting policies arising from adoption of new MFRSs and Amendments to MFRSs The accounting policies adopted by the Group and the Company are consistent with those of the previous financial year, except for the adoption of the following MFRSs and amendments to MFRSs: Effective for financial periods beginning on or after 1 January 2021: MFRS 9, MFRS 139, MFRS 7, MFRS 4 and MFRS 16: Interest Rate Benchmark Reform - Phase 2 1 January 2021 (Amendments to MFRS 9, MFRS 139, MFRS 7, MFRS 4 and MFRS 16) MFRS 16: COVID-19 - Related Rent Concessions (Amendment to MFRS 16) 1 April 2021 For the financial year ended 31 December 2021 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D.) 2.2 Changes in accounting policies arising from adoption of new MFRSs and Amendments to MFRSs (cont’d.) The accounting policies adopted by the Group and the Company are consistent with those of the previous financial year, except for the adoption of the following MFRSs and amendments to MFRSs: (cont’d.) Adoption of the above new MFRSs, Amendments to MFRSs, IC Interpretations and Annual Improvements to MFRSs did not have any material effect on the financial performance or position of the Group and the Company except as discussed below: IFRS Interpretations Committee’s (“IFRIC”) Agenda Decision on MFRS 123 Borrowing Costs relating to over time transfer of constructed goods (“IFRIC Agenda Decision”) In March 2019, the IFRIC published an agenda decision on borrowing costs confirming receivables, contract assets and inventories for which revenue is recognised over time are non-qualifying assets. On 20 March 2019, the Malaysian Accounting Standards Board (“MASB”) decided that an entity shall apply the change in accounting policy as a result of the IFRIC Agenda Decision to financial statements of annual periods beginning on or after 1 July 2020. As a result, finance cost can no longer be capitalised on the Group’s ongoing development project for which revenue is recognised over time. The Group has adopted this change in accounting policy in its financial statements for the current financial year ended 31 December 2021. This adoption has no material impact on the financial statements of the Group and of the Company. 2.3 Standards issued but not yet effective The standards, amendments to MFRSs and interpretations that are issued but not yet effective up to the date of issuance of the Group’s and of the Company’s financial statements are disclosed below. The Group and the Company intend to adopt these standards, if applicable, when they become effective. MFRS 3: Reference to the Conceptual Framework (Amendments to MFRS 3) 1 January 2022 MFRS 116: Property, Plant and Equipment - Proceeds Before Intended Use (Amendments to MFRS 116) 1 January 2022 MFRS 137: Onerous Contracts - Cost of Fulfilling a Contract (Amendments to MFRS 137) 1 January 2022 Annual Improvements to MFRS Standards 2018 - 2020 cycle 1 January 2022 MFRS 101: Classification of Liabilities as Current or Non-current (Amendments to MFRS 101) 1 January 2023 MFRS 101: Disclosure of Accounting Policies (Amendment to MFRS 101) 1 January 2023 MFRS 108: Definition of Accounting Policies (Amendment to MFRS 108) 1 January 2023 MFRS 17: Insurance Contracts (Amendments to MFRS 17) 1 January 2023 MFRS 112: Deferred Tax related to Assets and Liabilities arising from a single transaction 1 January 2023 (Amendment to MFRS 112) MFRS 10 and MFRS 128: Sale or Contribution of Assets between an Investor and its Associate or Joint Venture Deferred (Amendments to MFRS 10 and MFRS 128) The Amendments to MFRSs and Annual Improvements to MFRSs above are expected to have no significant impact on the financial statements of the Group and the Company upon their initial application except for the changes in presentation and disclosures of financial information arising from the adoption of these Amendments to MFRSs and Annual Improvements to MFRSs. FINANCIAL STATEMENTS NOTES TO THE Annual Report 2021 TROPICANA CORPORATION BERHAD FINANCIAL STATEMENTS AND OTHER INFORMATION 224 225
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