ENRA Group Berhad Annual Report 2021

FINANCIAL STATEMENTS & OTHERS Annual Report 2021 | ENRA Group Berhad 185 NOTES TO THE FINANCIAL STATEMENTS 31 MARCH 2021 42. ADOPTION OF NEW MFRSs AND AMENDMENTS TO MFRSs 42.1 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 References to the Conceptual Framework in MFRS Standards 1 January 2020 Amendments to MFRS 3 Definition of a Business 1 January 2020 Amendments to MFRS 101 and MFRS 108 Definition of Material 1 January 2020 Amendments to MFRS 9, MFRS 139 and MFRS 7 Interest Rate Benchmark Reform 1 January 2020 Amendment to MFRS 16 Covid-19-Related Rent Concessions 1 June 2020 (early adopted) Amendments to MFRS 4 Insurance Contract - Extension of the Temporary Exemption from Applying MFRS 9 17 August 2020 Adoption of the above Standards did not have any material effect on the financial performance or position of the Group and of the Company except for the adoption of Amendment to MFRS 16 as described in the following section. Amendment to MFRS 16 Covid-19-Related Rent Concessions MFRS 16 has been amended to: (a) Provide lessees with an exemption from the requirement to determine whether a COVID-19-related rent concession is a lease modification; and (b) Require lessees that apply the exemption to account for COVID-19-related rent concessions as if they were not lease modifications. The practical expedient only applies to rent concessions occurring as a direct consequence of the COVID-19 pandemic and only if all of the following conditions are met: (i) Changes in lease payments results in revised consideration for the lease that is substantially the same as, or less than, the consideration for the lease immediately preceding the change; (ii) Any reduction in lease payments affects only payments originally due on or before 30 June 2021; and (iii) There is no substantive change to other terms and conditions of the lease. The Group has early adopted Amendment to MFRS 16 during the financial year ended 31 March 2021 and elected to apply the practical expedient to all rent concessions relating to leases with similar characteristics and in similar circumstances. Consequently, the Group did not recognise changes in these lease payments as lease modifications and instead, recognised these as variable lease payments in profit or loss. The effects of early adoption are disclosed in Note 5 to the financial statements.