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notes to the financial statements (cont’d)
for the financial year ended 30 June 2014
ANNUAL REPORT 2014
59
2. Summary of significant accounting policies (CONT’D)
2.3 Amendments/standards issued but not yet effective (cont’d)
FRS effective date to be announced
•
FRS 9, Financial Instruments: Classification and Measurement
FRS 9 reflects the first phase of work on the replacement of FRS 139 and applies to classification and
measurement of financial assets and financial liabilities as defined in FRS 139. The standard was initially
effective for annual periods beginning on or after 1 January 2013, but Amendments to FRS 9: Mandatory
Effective Date of FRS 9 and Transition Disclosures, issued in March 2012, moved the mandatory effective
date to 1 January 2015. Subsequently, on 14 February 2014, it was announced that the new effective
date will be decided when the project is closer to completion. The adoption of the first phase of FRS 9
will have an effect on the classification and measurement of the Group’s and the Company’s financial
assets, but will not have an impact on classification and measurement of the Group’s and the Company’s
financial liabilities. The Group and the Company will quantify the effect in conjunction with the other
phases, when the final standard including all phases is issued.
Malaysian Financial Reporting Standards
On 19 November 2011, the Malaysian Accounting Standards Board (“MASB”) issued a new MASB approved
accounting framework, the Malaysian Financial Reporting Standards (“MFRS Framework”).
The MFRS Framework is to be applied by all Entities Other Than Private Entities for annual periods beginning
on or after 1 January 2012, with the exception of entities that are within the scope of MFRS 141 Agriculture
(MFRS 141) and IC Interpretation 15 Agreements for Construction of Real Estate (IC 15), including its parent,
significant investor and venturer (herein called ‘Transitioning Entities’).
Transitioning Entities will be allowed to defer adoption of the new MFRS Framework for an additional three
years. Consequently, adoption of the MFRS Framework by Transitioning Entities will be mandatory for annual
periods beginning on or after 1 January 2015. Subsequently, on 2 September 2014, MASB has issued the
following standards:
(i)
MFRS 15, Revenue from Contracts Customers
(ii)
Agriculture: Bearer plants (Amendments to MFRS 116, Property, Plant and Equipment and MFRS 141,
Agriculture)
With the issuance of MFRS 14 and the Bearer Plants Amendment, all Transitioning Entities would be required
to adopt the MFRS latest by 1 January 2017.
The Group falls within the scope definition of Transitioning Entities and accordingly, will be required to prepare
financial statements using the MFRS Framework in its first MFRS financial statements for the year ending
30 June 2018. In presenting its first MFRS financial statements, the Group will be required to restate the
comparative financial statements to amounts reflecting the application of MFRS Framework. The majority of
the adjustments required on transition will be made, retrospectively, against opening retained profits.
At the date of these financial statements, the Group has not completed its quantification of the financial
effects of the differences between Financial Reporting Standards and accounting standards under the MFRS
Framework due to the ongoing assessment by the project team. Accordingly, the financial performance and
financial position as disclosed in these financial statements for the year ended 30 June 2014 could be different
if prepared under the MFRS Framework.
The Group considers that it is achieving its scheduled milestones and expects to be in a position to fully comply
with the requirements of the MFRS Framework for the financial year ending 30 June 2018.