Datasonic Group Berhad Annual Report 2019

Notes to the Financial Statements (Cont’d) For the Financial Year ended 31 March 2019 3. BASIS OF PREPARATION (CONT’D) 3.1 BASIS OF ACCOUNTING (CONT’D) (b) The Group and the Company has not applied in advance the following accounting standards and/ or interpretations (including the consequential amendments, if any) that have been issued by the Malaysian Accounting Standards Board (“MASB”) but are not yet effective for the current financial year:- MFRSs and/or IC Interpretations (Including The Consequential Amendments) Effective Date MFRS 16 Leases 1 January 2019 MFRS 17 Insurance Contracts 1 January 2021 IC Interpretation 23 Uncertainty over Income Tax Treatments 1 January 2019 Amendments to MFRS 3: Definition of a Business 1 January 2020 Amendments to MFRS 9: Prepayment Features with Negative Compensation 1 January 2019 Amendments to MFRS 10 and MFRS 128: Sale or Contribution of Assets  between an Investor and its Associate or Joint Venture Deferred Amendments to MFRS 101 and MFRS 108: Definition of Material 1 January 2020 Amendments to MFRS 119: Plan Amendment, Curtailment or Settlement 1 January 2019 Amendments to MFRS 128: Long-Term Interests in Associates and  Joint Ventures 1 January 2019 Amendments to References to the Conceptual Framework in MFRS Standards 1 January 2020 Annual Improvements to MFRS Standards 2015 – 2017 Cycles 1 January 2019 The adoptionof the above accounting standards and/or interpretations (including the consequential amendments, if any) is expected to have nomaterial impact on the financial statements of theGroup and the Company upon their initial application except as follows:- MFRS 16: Leases MFRS 16 sets out the principles for the recognition, measurement, presentation and disclosure of leases and will replace the current guidance on lease accounting when it becomes effective. Under MFRS 16, the classification of leases as either finance leases or operating leases is eliminated for lessees. All lessees are required to recognise their leasedassets and the related leaseobligations in the statement of financial positon (with limitedexceptions). The leasedassets are subject todepreciation and the interest on lease liabilities are calculated using the effective interest method. The Group is currently assessing the financial impact that may arise from the adoption of this standard. 3.2 BASIS OF CONSOLIDATION The consolidatedfinancial statements include the financial statements of theCompany and its subsidiaries made up to the end of the financial year. Subsidiaries are entities (including structured entities, if any) controlled by theGroup. TheGroup controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Potential voting rights are considered when assessing control only when such rights are substantive. The Group also considers it has de facto power over an investee when, despite not having the majority of voting rights, it has the current ability to direct the activities if the investee that significantly affect the investee’s return. Subsidiaries are consolidated fromthe date onwhich control is transferred to theGroupup to the effective date on which control ceases, as appropriate. 111 DATASONIC GROUP BERHAD (Company No. 809759-X) ANNUAL REPORT 2019