Bursa Malaysia • Annual Report 2013
97
Financial Reports
Notes to the Financial Statements
31 December 2013
2. Significant accounting policies (cont’d.)
2.2 Adoption of new and revised MFRSs and changes in accounting policies
(a) Adoption of Standards, Amendments and Issues Committee (IC) Interpretations
The accounting policies adopted by the Group and the Company are consistent with those adopted in the previous year, except as follows:
MFRS 3
Business Combinations
MFRS 10
Consolidated Financial Statements
MFRS 11
Joint Arrangements
MFRS 12
Disclosure of Interests in Other Entities
MFRS 13
Fair Value Measurement
MFRS 119
Employee Benefits (revised)
MFRS 127
Consolidated and Separate Financial Statements (revised)
MFRS 128
Investments in Associates and Joint Ventures (revised)
Amendments to MFRS 1
First-time Adoption of MFRS - Government Loans
Amendments to MFRS 7
Financial Instruments: Disclosures - Offsetting Financial Assets and Financial Liabilities
Amendments to MFRS 10
Consolidated Financial Statements: Transition Guidance
Amendments to MFRS 11
Joint Arrangements: Transition Guidance
Amendments to MFRS 12
Disclosure of Interests in Other Entities: Transition Guidance
Amendments to MFRS 101
Presentation of Items of Other Comprehensive Income
Annual Improvements to IC Interpretations and MFRSs 2009 - 2011 Cycle
The adoption of the above pronouncements did not have any impact on the financial statements of the Group and of the Company, except for the
following:
(i) MFRS 119
Employee Benefits (revised)
The Group and the Company have adopted MFRS 119
Employee Benefits (revised)
and applied this standard retrospectively during the
financial year.
The amendments to MFRS 119
Employee Benefits (revised)
changed the accounting for defined benefit plans and termination benefits. The
amendments require the recognition of changes in defined benefit obligations and in fair value of plan assets when they occur, and hence
eliminate the ’corridor method’ permitted under the previous version of MFRS 119
Employee Benefits
and accelerate the recognition of past
service costs.
As a result of MFRS 119
Employee Benefits (revised)
adoption, actuarial gains and losses are recognised immediately through other
comprehensive income in order for the net retirement benefit asset or liability recognised in the statement of financial position to reflect
the full value of the plan deficit or surplus. The expected returns on plan assets of defined retirement benefit scheme are not recognised in
profit or loss. Instead, the interest on net defined benefit obligation (net of the plan assets) is recognised in profit or loss, calculated using the
discount rate used to measure the net retirement benefit obligations or assets.
The financial effects arising from the adoption of MFRS 119
Employee Benefits (revised)
is disclosed in Note 2.2(c).
