MISC Annual Report 2017

NOTES TO THE FINANCIAL STATEMENTS 197 Financial Statements 2. SIGNIFICANT ACCOUNTING POLICIES (CONT'D.) 2.3 Summary of significant accounting policies (cont'd.) (aa) Fair value measurements (cont'd.) (ii) Non-financial assets For a non-financial asset, the fair value measurement takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. When measuring the fair value of an asset or a liability, the Group uses observable market data as far as possible. Fair value are categorised into different levels in a fair value hierarchy based on the input used in the valuation technique as follows: • Level 1 - Quoted prices (unadjusted) in active markets for identical assets and liabilities. • Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). • Level 3 - Inputs for the asset or liability that are not based on observable market data (unobservable input). The fair value of an asset to be transferred between levels is determined as of the date of the event or change in circumstances that caused the transfer. 2.4 Pronouncements not yet in effect The following pronouncements that have been issued by the MASB will become effective in future financial reporting periods and have not been adopted by the Group and/or the Corporation: Effective for annual periods beginning on or after 1 January 2018 • Amendments to MFRS 1: First-time Adoption of Malaysian Financial Reporting Standards (Annual Improvements to MFRS Standards 2014-2016 Cycle) • Amendments to MFRS 2: Shared-based Payment: Classification and Measurement of Share-based Payment Transactions • MFRS 9: Financial Instruments • MFRS 15: Revenue from Contracts with Customers • MFRS 15: Revenue from Contracts with Customers: Clarifications to MFRS 15 • Amendments to MFRS 128: Investments in Associates and Joint Ventures (Annual Improvements 2014–2016 Cycle) • Amendments to MFRS 140: Investment Property: Transfers of Investment Property • IC Interpretation 22: Foreign Currency Transactions and Advance Consideration