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(11817-V) |

Annual Report



2.2 New FRSs, Amendments to FRS and IC Interpretations (Cont’d)

(b) Standards Issued But Not Yet Effective (Cont’d)

(i) FRS 15 Revenue from Contracts with Customers (Cont’d)

Either a full or modified retrospective application is required for annual periods beginning

on or after 1 January 2018 with early adoption permitted. The Directors anticipate that the

application of FRS 15 will have an impact on the amounts reported and disclosures made in

the Group’s and the Company’s financial statements. The Group is currently assessing the

impact of FRS 15 and plans to adopt the new standard on the required effective date.

(ii) 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 Group’s financial assets, but no impact on the classification and

measurement of the Group’s financial liabilities.

(c) Malaysian Financial Reporting Standards (“MFRS”) Framework

On 19 November 2011, the Malaysian Accounting Standards Board (“MASB”) issued a new

MASB approved accounting framework, the Malaysian Financial Reporting Standards Framework

(“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 the Construction

of Real Estate (IC 15), including its parent, significant investor and venturer (herein called

“Transitioning Entities”).

Transitioning Entities are allowed to defer adoption of the new MFRS Framework. The adoption

of the MFRS Framework by Transitioning Entities will be mandatory for annual periods beginning

on or after 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 31 March 2019. In presenting its first MFRS financial statements,

the Group will be required to adjust the comparative financial statements prepared under FRS to

amounts reflecting the application of MFRS Framework. The majority of the adjustments required

on transition will be made, retrospectively, against the opening retained earnings.