PRG Holdings Berhad Annual Report 2018

5. ADOPTION OF NEW MFRSs AND AMENDMENTS TO MFRSs 5.1 Adoption of MFRS framework during the current financial year The Group and the Company are transitioning entities as defined by the Malaysian Accounting Standards Board (“MASB”), and adopted the MFRS Framework during the financial year ended 31 December 2018. Accordingly, these are the first financial statements of the Group and of the Company prepared in accordance with MFRSs. In adopting the new MFRS Framework, the Group applied the transition requirements in MFRS 1 First-time Adoption of Malaysian Financial Reporting Standards . 5.2 Explanation of transition to MFRSs The Group adjusted amounts previously reported in the financial statements that were prepared in accordance with the previous FRS Framework. In preparing the opening statements of financial position at 1 January 2017, an explanation on the impact arising from the transition from FRSs to MFRSs on the financial position and financial performance of the Group is set out as follows.  (a) Reconciliation of financial position and equity of the Group Previously Restated Group reported Effects of Effects of under under FRSs MFRS 15 MFRS 9 MFRSs 1 January 2017 RM’000 RM’000 RM’000 RM’000 Non-current assets Property, plant and equipment 50,166 - - 50,166 Intangible assets 1,457 - - 1,457 Investment in a joint venture 1,355 - - 1,355 Deferred tax assets 564 590 - 1,154 53,542 590 - 54,132 Current assets Property development costs 156,923 (156,923) - - Inventories 23,888 158,888 - 182,776 Trade and other receivables 31,641 - (255) 31,386 Contract assets - 11,244 - 11,244 Current tax assets 959 - - 959 Cash and bank balances 20,504 - - 20,504 233,915 13,209 (255) 246,869 Total assets 287,457 13,799 (255) 301,001 Equity Share capital 74,555 - - 74,555 Treasury shares (87) - - (87) Reserves 49,434 (57) (153) 49,224 123,902 (57) (153) 123,692 Non-controlling interests (977) (31) (102) (1,110) Total equity 122,925 (88) (255) 122,582 2018 A N N U A L R E P O R T 98 notes to the financial statements 31 December 2018 (continued)