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AirAsia X Berhad • Annual Report 2014
NOTES TO THE FINANCIAL STATEMENTS
AS AT 31 DECEMBER 2014
1
GENERAL INFORMATION
The principal activity of the Company is that of providing long haul air transportation services. The principal activities of the subsidiary companies are described in Note 16 to
the financial statements.
There was no significant change in the nature of these activities during the financial year.
The address of the registered office of the Company is as follows:
B-13-15, Level 13
Menara Prima Tower B
Jalan PJU1/39, Dataran Prima
47301 Petaling Jaya
Selangor Darul Ehsan
The address of the principal place of business of the Group and Company is as follows:
Mezzanine Floor, LCCT
Jalan KLIA S3
Southern Support Zone KLIA
64000 Sepang
Selangor Darul Ehsan
The financial statements have been approved for issue in accordance with a resolution of the Board of Directors on 29 April 2015.
2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Unless otherwise stated, the following accounting policies have been applied consistently in dealing with items that are considered material in relation to the financial
statements:
(a)
Basis of preparation
The financial statements of the Group and Company have been prepared in accordance with the Malaysian Financial Reporting Standards (“MFRS”), International
Financial Reporting Standards and the requirements of the Companies Act, 1965 in Malaysia.
The financial statements have been prepared under the historical cost convention except as disclosed in this summary of significant accounting policies.
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 financial year. It also requires Directors to exercise their judgment in the process of applying the Group’s and Company’s accounting
policies. Although these estimates and judgment are based on the Directors’ best knowledge of current events and actions, actual results may differ. The areas
involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in Note 3 to
the financial statements.
Whilst the Group and the Company incurred net loss of RM519,443,000 and RM484,003,000 respectively during the financial year ended 31 December 2014 and as of
that date, the Group’s and the Company’s current liabilities exceeded their current assets by RM1,462,163,000 and RM1,464,271,000 respectively, the Directors are
of the view that no material uncertainty related to these conditions exists that may cast significant doubt on the Group’s or Company’s ability to continue as a going
concern. The Directors believe that the Group and the Company are able to realise their assets and discharge their liabilities in the normal course of business and that
the financial position will be improved through future operating profits and cash flows.
