PRG Holdings Berhad Annual Report 2017

• PRG HOLDINGS BERHAD 100 5. ADOPTION OF NEW FRSs AND AMENDMENTS TO FRSs (CONT’D) 5.3 New MFRSs that have been issued, but only effective for annual periods beginning on or after 1 January 2018 Malaysian Financial Reporting Standards On 19 November 2011, the Malaysian Accounting Standards Board (“MASB”) issued a new MASB approved accounting framework, the Malaysian Financial Reporting Standards (“MFRS Framework”). The MFRS Framework is to be applied by all Entities Other Than Private Entities for annual periods beginning on or after 1 January 2012, with the exception of entities that are within the scope of MFRS 141 Agriculture and IC Interpretation 15 Agreements for Construction of Real Estate , including its parent, significant investor and venture (herein called “Transitioning Entities”). Transitioning Entities are allowed to defer adoption of the new MFRS Framework. Consequently, adoption of the MFRS Framework by Transitioning Entities would be mandatory for annual periods beginning on or after 1 January 2018. The Group falls within the scope definition of Transitioning Entities and accordingly, would be required to prepare financial statements using the MFRS Framework in its first MFRS financial statements for the financial year ending 31 December 2018. In presenting its first MFRS financial statements, the Group would be required to adjust the comparative financial statements prepared under the FRSs to amounts reflecting the application of the MFRS Framework. The majority of the adjustments required on transition would be made, retrospectively, against opening retained earnings. The Group has opted to defer the adoption of the MFRS Framework to the financial period beginning 1 January 2018. In adopting the new MFRS Framework, the Group would be required to apply the specific transition requirements in MFRS 1 First-time Adoption of Malaysian Financial Reporting Standards . In addition to the adoption of the new MFRS Framework, the following new MFRSs and amendments to the MFRSs are effective for annual periods beginning on or after 1 January 2018: Title Effective Date Amendments to MFRS 1 Annual Improvements to MFRS Standards 2014 - 2016 Cycle 1 January 2018 MFRS 15 Revenue from Contracts with Customers 1 January 2018 Clarification to MFRS 15 1 January 2018 MFRS 9 Financial Instruments (IFRS as issued by IASB in July 2014) 1 January 2018 Amendments to MFRS 2 Classification and Measurement of Share-based Payment Transactions 1 January 2018 Amendments to MFRS 128 Annual Improvements to MFRS Standards 2014 - 2016 Cycle 1 January 2018 IC Interpretation 22 Foreign Currency Transactions and Advance Consideration 1 January 2018 Amendments to MFRS 140 Transfers of Investment Property 1 January 2018 Amendments to MFRS 4 Applying MFRS 9 Financial Instruments with MFRS 4 Insurance See MFRS 4 Contracts Paragraphs 46 and 48 MFRS 16 Leases 1 January 2019 IC Interpretation 23 Uncertainty over Income Tax Treatments 1 January 2019 Amendments to MFRS 128 Long-term Interests in Associates and Joint Ventures 1 January 2019 Amendments to MFRS 9 Prepayment Features with Negative Compensation 1 January 2019 Amendments to MFRS 3 Annual Improvements to MFRS Standards 2015 - 2017 Cycle 1 January 2019 Amendments to MFRS 11 Annual Improvements to MFRS Standards 2015 - 2017 Cycle 1 January 2019 Amendments to MFRS 112 Annual Improvements to MFRS Standards 2015 - 2017 Cycle 1 January 2019 Amendments to MFRS 123 Annual Improvements to MFRS Standards 2015 - 2017 Cycle 1 January 2019 MFRS 17 Insurance Contracts 1 January 2021 Amendments to MFRS 10 and MFRS 128 Sale or Contribution of Assets between an Investor Deferred and its Associate or Joint Venture The Group and the Company are in the process of assessing the impact of implementing these Standards, since the effects would only be observable for future financial years. N O T E S T O T H E F I N A N C I A L S T A T E M E N T S 3 1 D E C E M B E R 2 0 1 7 ( c o n t ’ d )