149 MISC BERHAD Annual Report 2015 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 2015 adopted the following new and amended MFRSs (collectively referred to as “pronouncements”) that have been issued by the Malaysian Accounting Standards Board (“MASB”): • Amendments to MFRS 119: Defined Benefit Plans: Employee Contributions • Amendments to MFRS 2: Share-based Payment (Annual Improvements 2010 – 2012 Cycle) • Amendments to MFRS 3: Business Combinations (Annual Improvements 2010 – 2012 Cycle and 2011 – 2013 Cycle) • Amendments to MFRS 8: Operating Segments (Annual Improvements 2010 – 2012 Cycle) • Amendments to MFRS 13: Fair Value Measurement (Annual Improvements to 2011 – 2013 Cycle) • Amendments to MFRS 116: Property, Plant and Equipment (Annual Improvements 2010 – 2012 Cycle) • Amendments to MFRS 124: Related Party Disclosures (Annual Improvements 2010 – 2012 Cycle) • Amendments to MFRS 138: Intangible Assets (Annual Improvements 2010 – 2012 Cycle) • Amendments to MFRS 140: Investment Property (Annual Improvements to 2011 – 2013 Cycle) 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. All inter-company transactions are eliminated on consolidation and hence, revenue and profits relate to external transactions only. Unrealised losses resulting from intercompany transactions are also eliminated, except for instances where cost cannot be recovered. In the Corporation’s separate financial statements, investments in subsidiaries are stated at cost less impairment losses. On disposal of such investments, the difference between net disposal proceeds and their carrying amounts is included in the income statement.
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