Page 113 - S P Setia Annual Report 2016

 

 

 

 

 

Page 113 - S P Setia Annual Report 2016
P. 113

S P Setia Berhad Group                                                                                 111
          Annual Report 2016




                                                                               Notes To The Financial Statements

                                                                                  For The Financial Year Ended 31 December 2016

          1.   SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)
              (b)   Amendments to FRSs that are not yet effective (cont’d.)


                   Malaysian Financial Reporting Standards (MFRS Framework)

                   On 19 November 2011, the MASB issued a new approved accounting framework, the MFRS framework.

                   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, significant investor and venturer (referred to as “Transitioning Entities” collectively).
                   Transitioning Entities are allowed to defer adoption of MFRS framework, 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 framework.

                   Based on the MASB announcement on 2 September 2014, the effective date for the adoption of MFRS Framework 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 and Agriculture: Bearer Plants (Amendments
                   to MFRS 116 and MFRS 141). MFRS 15 is effective for annual periods beginning on or after 1 January 2018 while the Agriculture:
                   Bearer Plants amendment is effective for annual periods beginning on or after 1 January 2016. On 17 November 2014, MASB issued
                   MFRS 9 Financial Instruments, which is effective for annual periods beginning on or after 1 January 2018.

                   Based  on  the  MASB  announcement  on  8  September  2015,  the  effective  date  for  the  adoption  of  MFRS  Framework  by  the
                   Transitioning Entities was deferred from annual periods beginning on or after 1 January 2017 to annual periods beginning on or
                   after 1 January 2018.

                   Accordingly, the Group has elected to continue to apply the FRS framework up to its financial year ending 31 December 2017.
                   The Group will adopt the MFRS framework and prepare its first set of MFRS framework financial statements for the financial year
                   ending 31 December 2018.

                   The Directors of the Company do not anticipate that the application of these amendments will have a material impact on the
                   Group’s and the Company’s financial statements.

              (c)   Significant accounting judgements and estimates

                   The preparation of financial statements requires management to exercise judgement in the process of applying the accounting
                   policies. It also requires the use of accounting estimates and assumptions that affect reported amounts of assets and liabilities
                   and disclosures of contingent assets and liabilities at the reporting date, and reported amounts of income and expenses during
                   the financial year.

                   Although these estimates are based on management’s best knowledge of current events and actions, historical experiences and
                   various other factors, including expectations for future events that are believed to be reasonable under the circumstances, actual
                   results may ultimately differ from these estimates.

                   The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised
                   in the period in which the estimate is revised and in any future periods affected.
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