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 2016 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 5: Non-current Assets Held for Sale and Discontinued Operations (Annual Improvements 2012-2014 Cycle) • Amendments to MFRS 7: Financial Instruments: Disclosures (Annual Improvements 2012-2014 Cycle) • Amendments to MFRS 10, 12 and 128: Investment Entities: Applying the Consolidation Exception • Amendments to MFRS 11: Joint Arrangements: Accounting for Acquisitions of Interests in Joint Operations • Amendments to MFRS 101: Presentation of Financial Statements: Disclosure Initiative • Amendments to MFRS 116 and 138: Clarification of Acceptable Methods of Depreciation and Amortisation • Amendments to MFRS 116 and 141: Agriculture: Bearer Plants • Amendments to MFRS 119: Employee Benefits (Annual Improvements 2012-2014 Cycle) • Amendments to MFRS 127: Separate Financial Statements: Equity Method in Separate Financial Statements • Amendments to MFRS 134: Interim Financial Reporting (Annual Improvements 2012-2014 Cycle) • MFRS 14: Regulatory Deferral Accounts 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. Financial Statements 173
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