39. SIGNIFICANT EVENTS DURING THE FINANCIAL YEAR (continued) (ii) On 23 March 2021, the Board of FHL had approved the disposal of Rich Day Global Limited through its whollyowned subsidiary, Delightful Grace Holdings Limited, to two independent third party purchasers for a total consideration of HKD8,500,000 (approximately RM4,400,000). (iii) On 1 November 2021, PRG announced that Furniweb Holding Limited ("FHL") as purchaser and Ms. Pua Lay Cheng and Mr. Lee Eng Lock as vendors (the “Vendors”) entered into the Share Sale Agreement ("SSA"), pursuant to which the Vendors have conditionally agreed to sell and FHL has conditionally agreed to acquire the 37.25% of issued share capital of Energy Solution Global Limited, whose two wholly-owned operating subsidiaries are principally engaging in provision of smart energy solution business at the total consideration of HKD9,564,000 (approximately RM5,187,000). The SSA has been completed on 13 December 2021. 40. IFRIC Agenda Decision - Over time transfer of constructed good (“IAS 23”) The IFRS Interpretations Committee ("IFRIC”) in its March 2019 meeting concluded that any receivable, contract asset, inventories that an entity recognises over time are not a qualifying assets. In addition, the Agenda Decision also concluded that capitalisation of borrowing costs into inventories cease when the development project is launched or ready for its intended use or sale. The Malaysia Accounting Standard Board announced on 20 March 2019 that an entity shall apply the change in accounting policy as a result of this Agenda Decision to financial statements of annual reports beginning on or after 1 July 2020. With the adoption of the IFRIC Agenda Decision, the Group has applied retrospectively in its statement of financial position as at 1 January 2020 to reflect the new policy. The impact of the adoption of the IFRIC Agenda Decision and reclassifications of certain comparative figures in the financial statements of the Group are as follows: Consolidated Statement of Profit or Loss: Effects on adoption As of IFRIC previously Agenda As Group reported Decision restated 31 December 2020 RM’000 RM’000 RM’000 Continuing operations Revenue 196,397 - 196,397 Cost of sales (159,713) 243 (159,470) Gross profit 36,684 243 36,927 NOTES TO THE FINANCIAL STATEMENTS 191 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 31 December 2021 (cont’d)
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