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Notes to the financial statements
31 December 2014
Bursa Malaysia
•
Annual Report 2014
101
2. Significant accounting policies (cont’d.)
2.3 Standards issued but not yet effective
As at the date of authorisation of these financial statements, the following Standards, Amendments and Annual Improvements have been issued by the
Malaysian Accounting Standards Board (MASB) but are not yet effective and have not been adopted by the Group and the Company:
Effective for financial periods beginning on or after 1 July 2014
Amendments to MFRS 119
Defined Benefit Plans: Employee Contributions
Annual improvements to MFRSs 2010 - 2012 Cycle
Annual improvements to MFRSs 2011 - 2013 Cycle
Effective for financial periods beginning on or after 1 January 2016
MFRS 14
Regulatory Deferral Accounts
Amendments to MFRS 11
Accounting for Acquisitions of Interests in Joint Operations
Amendments to MFRS 127
Equity Method in Separate Financial Statements
Amendments to MFRS 10 and MFRS 128
Sale or Contribution of Assets between an Investor and its Associate or Joint Venture
Amendments to MFRS 116 and MFRS 138
Clarification of Acceptable Methods of Depreciation and Amortisation
Amendments to MFRS 116 and MFRS 141
Agriculture: Bearer Plants
Annual improvements to MFRSs 2012 - 2014 Cycle
Effective for financial periods beginning on or after 1 January 2017
MFRS 15
Revenue from Contracts with Customers
Effective for financial periods beginning on or after 1 January 2018
MFRS 9
Financial Instruments (IFRS 9 as issued by International Accounting Standards Board in July 2014)
The Group and the Company will adopt the above pronouncements when they become effective in the respective financial periods. These pronouncements
are not expected to have any effect to the financial statements of the Group and of the Company upon their initial application, except as described below:
(a) MFRS 15
Revenue from Contracts with Customers
MFRS 15
Revenue from Contracts with Customers
was issued in September 2014 and establishes a new five-step model that will apply to recognition
of revenue arising from contracts with customers. Under this Standard, revenue is recognised at an amount that reflects the consideration to which an
entity expects to be entitled in exchange for transferring goods or services to a customer. The principle of this Standard is to provide a more structured
approach to measuring and recognising revenue.
This Standard is applicable to all entities and will supersede all current revenue recognition requirements under MFRS. Either a full or modified
retrospective application is required for annual periods beginning on or after 1 January 2017 with early adoption permitted. The Group and the
Company are currently assessing the impact of this Standard and plan to adopt this Standard on the required effective date.
(b) MFRS 9
Financial Instruments
In November 2014, the MASB issued the final version of MFRS 9
Financial Instruments
, replacing MFRS 139. This Standard made changes to the
requirements for classification and measurement, impairment, and hedge accounting. The adoption of this Standard will have an effect on the
classification and measurement of the Group’s and the Company’s financial assets, but no impact on the classification and measurement of the
Group’s and the Company’s financial liabilities.
MFRS 9
Financial Instruments
also requires impairment assessments to be based on an expected loss model, replacing the MFRS 139 incurred
loss model. Finally, MFRS 9
Financial Instruments
aligns hedge accounting more closely with risk management, establishes a more principle-based
approach to hedge accounting and addresses inconsistencies and weaknesses in the previous model.