116 | S P SETIA BERHAD GROUP | Annual Report 2014
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 October 2014
V. FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
(c) New/Revised FRSs, Amendments to FRSs and IC Interpretation that are not yet effective (cont’d)
Effective for financial periods
beginning on or after
New/Revised FRSs, Amendments to FRSs and IC Interpretation
Amendments to FRS 139
Novation of Derivatives and Continuation of Hedge
1 January 2014
IC Interpretation 21
1 January 2014
Amendments to FRSs
Annual Improvements to FRSs
1 July 2014
1 January 2018
** The Group will adopt the MFRS framework and will prepare its first set of MFRS financial statements for the financial year
ending 31 October 2018. Thereafter, the Group will apply MFRS 9 when it is effective.
The above new/revised FRSs, Amendments to FRSs and IC Interpretation are expected to have no material impact on the financial
statements of the Group and the Company upon their initial application.
Malaysian Financial Reporting Standards (MFRSs)
On 19 November 2011, the MASB issued a new approved accounting framework, i.e. MFRS.
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
and/or IC Interpretation 15
Agreements for Construction
of Real Estate
, including the entities’ parent, significant investor and venturer (referred to as “Transitioning Entities” collectively).
Transitioning Entities are allowed to defer adoption of MFRS, and continue to use the existing FRS framework until the MFRS
framework is effective. The Group falls within the definition of Transitioning Entities and has opted to defer adoption of MFRS.
Based on the MASB announcement on 2 September 2014, the effective date for the adoption of MFRS by the Transitioning Entities
was deferred from annual periods beginning on or after 1 January 2015 to annual periods beginning on or after 1 January 2017.
On the same day, MASB also issued MFRS 15
Revenue from Contracts with Customers
Agriculture: Bearer Plants (Amendments
to MFRS 116 and MFRS 141)
. MFRS 15 is effective for annual periods beginning on or after 1 January 2017 while the
amendment is effective for annual periods beginning on or after 1 January 2016. On 17 November 2014, MASB issued MFRS 9
, which is effective for annual periods beginning on or after 1 January 2018. They are word for word that of the
International Financial Reporting Standards issued by the International Accounting Standards Board.
Accordingly, the Group has elected to continue to apply the FRS framework up to its financial year ending 31 October 2017 and will
adopt the MFRS framework and will prepare its first set of MFRS financial statements for the financial year ending 31 October 2018.
MFRS 15, Revenue from Contracts with Customers
The core principle of MFRS 15 is that an entity recognises revenue to depict the transfer of promised goods or services to customers
in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. An
entity recognises revenue in accordance with the core principle by applying the following steps:
• Identify the contracts with a customer
• Identify the performance obligation in the contract
• Determine the transaction price
• Allocate the transaction price to the performance obligations in the contract
• Recognise revenue when (or as) the entity satisfies a performance obligation
MFRS 15 also includes new disclosures that would result in an entity providing users of financial statements about the nature,
amount, timing and uncertainty of revenue and cash flows from contracts with customers.