Excel Force MSC Berhad Annual Report 2015

NOTES TO THE FINANCIAL STATEMENTS 31 December 2015 (cont’d) E X C E L F O R C E M S C B E R H A D • A N N U A L R E P O R T 2 0 1 5 65 5. ADOPTION OF NEW MFRSs AND AMENDMENT TO MFRSs 5.1 New MFRSs adopted during the financial year The Group and the Company adopted the following Standards of the MFRS Framework that were issued by the Malaysian Accounting Standards Board (‘MASB’) during the financial year. Title Effective Date Amendments to MFRS 119 Defined Benefit Plans: Employee Contributions 1 July 2014 Amendments to MFRSs Annual Improvements 2010 – 2012 Cycle 1 July 2014 Amendments to MFRSs Annual Improvements 2011 – 2013 Cycle 1 July 2014 There is no material impact upon the adoption of these Amendments during the financial year. 5.2 NewMFRSs that have been issued, but only effective for annual periods beginning on or after 1 January 2016 The following are Standards of the MFRS Framework that have been issued by the Malaysian Accounting Standards Board (‘MASB’) but have not been early adopted by the Group and the Company. Title Effective Date MFRS 14 Regulatory Deferral Accounts 1 January 2016 Amendments to MFRS 10 and MFRS 128 Sale or Contribution of Assets between an Investor and its Associates or Joint Venture Deferred Amendments to MFRS 10, MFRS 12 and MFRS 128 Investment Entities: Applying the Consolidation Exception 1 January 2016 Amendments to MFRS 101 Disclosure Initiative 1 January 2016 Amendments to MFRS 116 and MFRS 138 Clarification of Acceptable Methods of Depreciation and Amortisation 1 January 2016 Amendments to MFRS 11 Accounting for Acquisitions of Interests in Joint Operations 1 January 2016 Amendments to MFRS 116 and MFRS 141 Agriculture: Bearer Plants 1 January 2016 Amendments to MFRS 127 Equity Method in Separate Financial Statements 1 January 2016 Amendments to MFRSs Annual Improvements to 2012-2014 Cycle 1 January 2016 MFRS 9 Financial Instruments (IFRS as issued by IASB in July 2014) 1 January 2018 MFRS 15 Revenue from Contracts with Customers 1 January 2018 TheGroup is in the process of assessing the impact of implementing theseAmendments and Standards, since the effects would only be observable for the future financial years. 6. SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENTS 6.1 Changes in estimates Estimates are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The Group and the Company revised the estimated useful life of product development costs from five (5) to ten (10) years to three (3) to ten (10) years with effect from 1 January 2015. The revision was accounted for prospectively as a change in accounting estimate and as a result, the amortisation charge of the Group and of the Company for the current financial year has been increased by RM549,990 and RM393,617 respectively. There are no other significant changes in estimates since the end of the reporting period.