Page 102 - S P Setia Annual Report 2013
P. 102

100 | Financial Statements S P SETIA BERHAD GROUP Annual Report 2013



1. SiGniFicant accOUntinG POlicieS (cOnt’D)

(c) new/Revised FRSs, amendments to FRSs and ic interpretations that are not yet effective (cont’d)
FRS 12, Disclosure of Interests in Other Entities

FRS 12 provides disclosure requirements for all forms of interests in subsidiaries, joint arrangements, associates and unconsolidated
structured entities. Disclosures include signifcant judgements and assumptions made in determining the nature of the entity’s interest
in another entity and the risks associated with those interests. The Group is yet to assess FRS 12’s full impact and intends to adopt FRS
12 no later than the accounting period beginning on or after 1 January 2013.

FRS 13, Fair Value Measurement

FRS 13 aims to improve consistency and reduce complexity by providing a precise defnition of fair value and a single source of fair
value measurement and disclosure requirements.

This FRS explains how to measure fair value of assets, liabilities and equity but does not introduce new fair value measurement
requirements. Other than additional disclosures, the adoption of FRS 13 does not have signifcant impact on the amounts recognised
in the fnancial statements.
FRS 128, Investments in Associates and Joint Ventures

The FRS 128 prescribes the accounting for investment in associates as well as joint ventures where the equity method of accounting
is required in accordance with FRS 11. The option to proportionately consolidate joint ventures’ results and fnancial position in
the venturer’s fnancial statements will no longer be permitted. Accordingly, the investments in jointly controlled entities and jointly
controlled operation will be accounted for in the consolidated fnancial statements using the equity method of accounting. This will
be applied retrospectively. The Group is yet to assess FRS 128’s full impact and intends to adopt FRS 128 no later than the accounting
period beginning on or after 1 January 2013.

On 19 November 2011, the MASB issued new MASB approved accounting standards, i.e. Malaysian Financial Reporting Standards

MFRS 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 subject to the application of MFRS 141 Agriculture and/or IC Interpretation 15 Agreements for Construction of
Real Estate, including the entities’ parent, signifcant investor and venturer (herein referred to as ‘Transitioning Entities’). Transitioning
Entities are allowed to defer adoption of MFRS, and continue to use the existing FRS framework until the MFRS framework is mandated
by the MASB.

The Group falls within the defnition of Transitioning Entities and has opted to defer adoption of MFRS. The Group will adopt MFRS and
will prepare its frst set of MFRS fnancial statements when the MFRS framework is mandated by the MASB. In presenting its frst set of
MFRS fnancial statements, the Group will quantify the fnancial effects of the differences between the currently applied FRS and MFRS.
The majority of the adjustments required on transition will be made, retrospectively, against opening retained earnings.

Accordingly, the fnancial performance and fnancial position of the Group as disclosed in these fnancial statements for the year ended
31 October 2013 could be different if prepared in accordance with MFRS framework.

Certain subsidiaries, associates and joint ventures of the Group prepare their fnancial statements using MFRS framework. Accordingly,
reconciliations have been performed for the different fnancial reporting frameworks. However, the differences did not have signifcant
impact to these consolidated fnancial statements.
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