FGV Audited Financial Statements 2020

1 GENERAL INFORMATION The Company is incorporated in Malaysia and listed on the Main Market of Bursa Malaysia Securities Berhad. The registered office and principal place of business of the Company is located at Level 21, Wisma FGV, Jalan Raja Laut, 50350 Kuala Lumpur. The Company is principally an investment holding company with investments primarily in oil palm plantation and its related downstream activities, sugar refining, trading, logistics, marketing, rubber processing, research and development activities and related agribusiness activities. The principal activities of the subsidiaries are stated in Note 24 to the financial statements. There have been no significant changes in the nature of these activities of the Group and of the Company during the financial year. 2 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 Group and the Company have taken into consideration COVID-19 pandemic impact and the current economic environment on the basis of preparation of the financial statements. The Directors of the Company continue to consider that it is appropriate to prepare the financial statements on the going concern basis. 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. The preparation of financial statements in conformity with MFRS requires the use of certain critical accounting estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reported period. It also requires Directors to exercise their judgement in the process of applying the Group and Company’s accounting policies. Although these estimates and judgement are based on the Directors’ best knowledge of current events and actions, actual results may differ. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in Note 5. (i) The Group has applied the following standards and amendments for the first time for the financial year beginning on 1 January 2020: • The Conceptual Framework for Financial Reporting (Revised 2018) • Amendments to MFRS 101 and MFRS 108 ‘Definition of Material’ • Amendments to MFRS 3 ‘Definition of a Business’ • Amendments to MFRS 9, MFRS 139 and MFRS 7 ‘Interest Rate Benchmark Reform’ The amendments listed above did not have significant impact on the amounts recognised in prior periods and are not expected to significantly affect the current or future periods. (ii) Accounting pronouncements that are not yet effective and have not been early adopted by the Group and Company: Accounting pronouncements that are currently being assessed by the Directors: Effective for annual periods beginning on or 1 June 2020 with earlier application permitted • Amendments to MFRS 16 ‘Covid-19-Related Rent Concessions’ Effective for annual periods beginning on or after 1 January 2021 • Interest Rate Benchmark Reform – Phase 2 - Amendments to MFRS 9, MFRS 139, MFRS 7, MFRS 4 and MFRS 16 Notes to the Financial Statements For The Financial Year Ended 31 December 2020 28 FGV HOLDINGS BERHAD Audited Financial Statement 2020