5. ADOPTION OF NEW MFRSs AND AMENDMENTS TO MFRSs (continued) 5.2 New MFRSs that have been issued, but only effective for annual periods beginning on or after 1 January 2022 The following are Standards of the MFRS Framework that have been issued by the MASB but have not been early adopted by the Group and the Company: Title Effective Date Annual Improvements to MFRS Standards 2018 - 2020 1 January 2022 Amendments to MFRS 3 Reference to the Conceptual Framework 1 January 2022 Amendments to MFRS 116 Property, Plant and Equipment - Proceeds before Intended Use 1 January 2022 Amendments to MFRS 137 Onerous Contracts - Cost of Fulfilling a Contract 1 January 2022 Amendments to MFRS 101 Classification of Liabilities as Current or Non-current 1 January 2023 MFRS 17 Insurance Contracts 1 January 2023 Amendments to MFRS 17 Insurance Contracts 1 January 2023 Disclosure of Accounting Policies (Amendments to MFRS 101 Presentation of Financial Statements) 1 January 2023 Definition of Accounting Estimates (Amendments to MFRS 108 Accounting Policies, Changes in Accounting Estimates and Errors) 1 January 2023 Amendments to MFRS 112 Deferred tax-related to Assets and Liabilitites arising from a Single Transaction 1 January 2023 Amendments to MFRS 10 and MFRS 128 Sale or Contribution of Assets between an Investor and its Associate or Joint Venture Deferred The Group and the Company are in the process of assessing the impact of implementing these Standards and Amendments, since the effects would only be observable for the future financial year. 6. SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENTS Estimates and judgements are continually evaluated by the management of the Group and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The management makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, rarely equal the related actual results. To enhance the information content of the estimates, certain key variables that are anticipated to have a material impact to the Group’s results and financial position are tested for sensitivity to changes in the underlying parameters. The estimates and assumptions that may have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are outlined below. (a) Recoverability of trade and other receivables The determination of whether trade and other receivables are recoverable involves significant management judgement in determining the probability of default by trade and other receivables and appropriate forwardlooking information (i.e. Gross domestic product growth rate, inflation rate, unemployment rate, interest rate, consumer price index). NOTES TO THE FINANCIAL STATEMENTS P R G H O L D I N G S B E R H A D A N N U A L R E P O R T 2 0 2 1 112 31 December 2021 (cont’d)
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