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Frontken Corporation Berhad (651020-T)
ANNUAL REPORT
2016
2.
BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS (CONT’D)
2.2 The Group has not applied in advance the following accounting standards and interpretations (including the
consequential amendments, if any) that have been issued by the Malaysian Accounting Standards Board (MASB)
but are not yet effective for the current financial year:-
MFRSs and/or IC Interpretations (Including The Consequential Amendments)
Effective Date
MFRS 9 Financial Instruments (IFRS 9 issued by IASB in July 2014)
1 January 2018
MFRS 15 Revenue from Contracts with Customers
1 January 2018
MFRS 16 Leases
1 January 2019
IC Interpretation 22 Foreign Currency Transactions and Advance Consideration
1 January 2018
Amendments toMFRS2: ClassificationandMeasurement of Share-basedPayment Transactions
1 January 2018
Amendments to MFRS 4: Applying MFRS 9 Financial Instruments with MFRS 4 Insurance
Contracts
1 January 2018
Amendments to MFRS 10 and MFRS 128: Sale or Contribution of Assets between an Investor
and its Associate or Joint Venture
Deferred until
further notice
Amendments to MFRS 15: Effective Date of MFRS 15
1 January 2018
Amendments to MFRS 15: Clarifications to MFRS 15 ‘Revenue from Contracts with Customers’
1 January 2018
Amendments to MFRS 107: Disclosure Initiative
1 January 2017
Amendments to MFRS 112: Recognition of Deferred Tax Assets for Unrealised Losses
1 January 2017
Amendments to MFRS 140 – Transfers of Investment Property
1 January 2018
Annual Improvements to MFRS Standards 2014 – 2016 Cycles:
•
Amendments to MFRS 12: Clarification of the Scope of Standard
1 January 2017
Annual Improvements to MFRS Standards 2014 – 2016 Cycles:
•
Amendments to MFRS 1: Deletion of Short-term Exemptions for First-time Adopters
•
Amendments to MFRS 128: Measuring an Associate or Joint Venture at Fair Value
1 January 2018
The adoption of the above accounting standards and/or interpretations (including the consequential amendments,
if any) is expected to have no material impact on the financial statements of the Group upon their initial application
except as follows:-
(i)
MFRS 9 (IFRS 9 issued by IASB in July 2014) replaces the existing guidance in MFRS 139 and introduces a
revised guidance on the classification and measurement of financial instruments, including a single forward-
looking ‘expected loss’ impairment model for calculating impairment on financial assets, and a new approach to
hedge accounting. Under this MFRS 9, the classification of financial assets is driven by cash flow characteristics
and the business model in which a financial asset is held. Therefore, it is expected that the Group’s investments
in unquoted shares that are currently stated at cost less accumulated impairment losses will be measured at fair
value through other comprehensive income upon the adoption of MFRS 9. The Group is currently assessing the
financial impact of adopting MFRS 9.
(ii) MFRS 15 establishes a single comprehensive model for revenue recognition and will supersede the current
revenue recognition guidance and other related interpretations when it becomes effective. Under MFRS 15, an
entity shall recognise revenue when (or as) a performance obligation is satisfied, i.e. when ‘control’ of the distinct
promised goods or services underlying the particular performance obligation is transferred to the customers. The
amendments to MFRS 15 further clarify the concept of ‘distinct’ for the purposes of this accounting standard. In
addition, extensive disclosures are also required by MFRS 15. The Group anticipates that the application of MFRS
15 in the future may have an impact on the amounts reported and disclosures made in the financial statements.
However, it is not practicable to provide a reasonable estimate of the financial impacts of MFRS 15 until the Group
performs a detailed review.
Notes To The Financial Statements
(cont’d)