MISC BERHAD - Annual Report 2014 p 162 NOTESTOTHE FINANCIAL STATEMENTS - 31 December 2014 2. Significant accounting policies (cont’d.) 2.2 Changes in accounting policies and effects arising from the adoption of New and Revised MFRSs The Group and the Corporation had on 1 January 2014 adopted the following new and amended MFRSs and IC Interpretations (collectively referred to as “pronouncements”) that has been issued by the Malaysian Accounting Standards Board (“MASB”); • Amendments to MFRS 10: Consolidated Financial Statements - Investment Entities • Amendments to MFRS 12: Disclosure of Interests in Other Entities - Investment Entities • Amendments to MFRS 127: Consolidated and Separate Financial Statements • Amendments to MFRS 132: Financial Instruments: Presentation - Offsetting Financial Assets and Financial Liabilities • Amendments to MFRS 136: Impairment of Assets - Recoverable Amount Disclosures for Non-financial Assets • Amendments to MFRS 139: Financial Instruments: Recognition and Measurement - Novation of Derivatives and Continuation of Hedge Accounting • IC Interpretation 21: Levies The adoption of the above pronouncements did not have any significant financial impact to the Group and the Corporation. 2.3 Summary of significant accounting policies The accounting policies set out below have been applied consistently to the periods presented in these financial statements and, unless otherwise stated, have been applied consistently by the Group and the Corporation. (a) Subsidiaries and basis of consolidation (i) Subsidiaries Subsidiaries are entities including structured entities controlled by the Corporation. The Group controls an entity when it 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 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 of the investee that significantly affect the investee’s return. The financial statements of subsidiaries are included in the consolidated financial statements of the Group from the date that control commences until the date that control ceases.
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