ENRA Group Berhad Annual Report 2021

FINANCIAL STATEMENTS & OTHERS ENRA Group Berhad | Annual Report 2021 186 NOTES TO THE FINANCIAL STATEMENTS 31 MARCH 2021 42. ADOPTION OF NEW MFRSs AND AMENDMENTS TO MFRSs (cont’d) 42.2 NewMFRSs that have been issued, but only effective for annual periods beginning on or after 1 January 2021 Title Effective Date Interest Rate Benchmark Reform - Phase 2 (Amendments to MFRS 9, MFRS 139, MFRS 7, MFRS 4 and MFRS 16) 1 January 2021 Covid-19-Related Rent Concessions beyond 30 June 2021 (Amendment to MFRS 16 Leases ) 1 April 2021 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 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 future financial years. 43. FINANCIAL REPORTING UPDATES 43.1 IFRIC Agenda Decision - An assessment of the lease term (IFRS 16) The IFRS Interpretations Committee (“IFRIC”) issued a final agenda decision on 26 November 2019 regarding Lease term and useful life of leasehold improvements (IFRS 16 and IAS 16). The submission to the IFRIC raised a question pertaining the determination of the lease term of a cancellable lease or a renewable lease based on the requirements of IFRS 16.B34. Based on the final agenda decision, the IFRIC concluded that the determination of the enforceable period of a lease and the lease term itself shall include broad economic circumstances beyond purely commercial terms. The Group has implemented the requirements of this final agenda decision during the financial year ended 31 March 2021. There is no material impact on the financial statements of the Group as at the end of reporting period.