The financial statements are presented in Ringgit Malaysia 2 Basis of

The financial statements are presented in ringgit

This preview shows page 35 - 36 out of 72 pages.

The financial statements are presented in Ringgit Malaysia. 2 Basis of preparation (a) The financial statements of the Group and of the Company have been prepared under the historical cost convention, unless otherwise indicated in the individual policy statements in Note 3 to the financial statements and comply with Malaysian Financial Reporting Standards, International Financial Reporting Standards and the requirements of the Companies Act, 2016 in Malaysia. (b) The financial statements have been prepared on the assumption that the Group and the Company are going concerns. The Group and the Company incurred net losses during the financial year ended 30 September 2018 of RM2,904,588 and RM2,886,285 respectively and, as at the date, the Group and the Company had net current liabilities of RM30,831,352 and RM30,776,023 respectively and negative shareholders’ funds of RM25,972,426 and RM25,911,730 respectively. The Company had submitted its revised Proposed Regularisation Plan (“PRP”) to Bursa Securities for approval on 07 August 2018 (Note 29). The going concern assumption is highly dependent upon successful approval and implementation of the Regularisation Plan and the ability of the Group and the Company to generate sufficient cash flows to fulfil their obligation as and when fall due. 3 Significant accounting policies (a) Basis of consolidation The consolidated financial statements comprise the financial statements of the Company and its subsidiaries as at the reporting date. The financial statements of the subsidiaries used in the preparation of the consolidated financial statements are prepared for the same reporting date as of the Company. Consistent accounting policies are applied to like transactions and events in similar circumstances. All intra-group balances, income and expenses and unrealised gains and losses resulting from intra-group transactions are eliminated in full. Acquisitions of subsidiaries are accounted for by applying the acquisition method. Identifiable assets acquired and liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Acquisition-related costs are recognised as expenses in the periods in which the costs are incurred and the services are received. Any excess of the cost of business combination over the Group’s share in the net fair value of the acquired subsidiary’s identifiable assets, liabilities and contingent liabilities is recorded as goodwill on the statement of financial position. Any excess of the Group’s share in the net fair value of the acquired subsidiary’s identifiable assets, liabilities and contingent liabilities over the cost of business combination is recognised as income in profit or loss on the date of acquisition. When the Group acquires a business, embedded derivatives separated from the host contract by the acquiree are reassessed on acquisition unless the business combination results in a change in the terms of the contract that significantly modifies the cash flows that would otherwise be required under the contract.
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