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JAYA TIASA HOLDINGS BERHAD
Notes to the Financial Statements (cont’d)
for the financial year ended 30 June 2015
2.
Summary of significant accounting policies (cont’d)
2.3 Amendments/standards issued but not yet effective (cont’d)
FRS 9 Financial Instruments
In November 2014, MASB issued the final version of FRS 9 Financial Instruments which reflects all phases of the
financial instruments project and replaces FRS 139 Financial Instruments: Recognition and Measurement and
all previous versions of FRS 9. The standard introduces new requirements for classification and measurement,
impairment and hedge accounting. FRS 9 is effective for annual periods beginning on or after 1 January 2018,
with early application permitted. Retrospective application is required, but comparative information is not
compulsory. The adoption of FRS 9 will have an effect on the classification and measurement of the Company’s
financial assets, but no impact on the classification and measurement of the Company’s financial liabilities.
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 2015, 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 2018.
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 2019. 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 2015 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 2019.
2.4 Basis of consolidation
The consolidated financial statements comprise the financial statements of the Company and its subsidiaries
as at the reporting date. The financial statements of the subsidiaries used in the preparation of the consolidated
financial statements are prepared for the same reporting date as the Company. Consistent accounting policies
are applied for like transactions and events in similar circumstances.
