Maxis Berhad | Annual Report 2012

Maxis Berhad // Annual Report 2012 104 2 BASIS OF PREPARATION (CONTINUED) Standards and amendments to published standards that are applicable to the Group and the Company but not yet effective The Group and the Company will apply the new standards and amendments to published standards in the following periods: (i) Financial year beginning on or after 1 January 2013 • MFRS 10 “Consolidated Financial Statements” (effective from 1 January 2013), which replaces part of MFRS 127 “Consolidated and Separate Financial Statements” and all of IC Interpretation 112 “Consolidation – Special Purpose Entities”, build on existing principles by identifying the concept of control as the determining factor for whether an entity should be included within the consolidated financial statements of the parent company. The standard provides additional guidance to assist in the determination of control where this is difficult to assess. This MFRS is not expected to have any significant impact on the financial results and position of the Group. • MFRS 12 “Disclosure of Interests in Other Entities” (effective from 1 January 2013) sets out the required disclosures for entities reporting under the two new standards, MFRS 10 and MFRS 11, and replaces the disclosure requirements currently found in MFRS 128 “Investments in associates”. It requires entities to disclose information that helps financial statement readers to evaluate the nature, risks and financial effects associated with the entity’s interests in subsidiaries, associates, joint arrangements and unconsolidated structured entities. This MFRS is not expected to have any impact on the financial results and position of the Group and of the Company. • MFRS 13 “Fair Value Measurement” (effective from 1 January 2013) aims to improve consistency and reduce complexity by providing a precise definition of fair value and a single source of fair value measurement and disclosure requirements for use across MFRSs. The requirements do not extend the use of the fair value accounting but provide guidance on how it should be applied where its use is already required or permitted by other standards within MFRSs. The Group and the Company will apply this MFRS prospectively from 1 January 2013 and this is not expected to have any significant impact on the financial results and position of the Group and of the Company. • MFRS 119 “Employee Benefits” (effective from 1 January 2013) eliminates the corridor approach and recognise all actuarial gains and losses in other comprehensive income as they occur; to immediately recognise all past service costs; and to replace interest cost and expected return on plan assets with a net interest amount that is calculated by applying the discount rate to the net defined benefit liability (asset). These amendments do not have any impact on the financial results and position of the Group and of the Company. • The revised MFRS 127 “Separate Financial Statements” (effective 1 January 2013) includes the provisions on separate financial statements that are left after the control provisions of MFRS 127 have been included in the new MFRS 10. This revised MFRS does not have any impact on the financial results and position of the Company. • Amendments to MFRS 7 “Financial Instruments: Disclosures” (effective from 1 January 2013) requires more extensive disclosures focusing on quantitative information about recognised financial instruments that are offset in the statement of financial position and those that are subject to master netting or similar arrangements irrespective of whether they are offset. These amendments are not expected to have any impact on the financial results and position of the Group and of the Company. • Amendments to MFRS 10, MFRS 11 and MFRS 12 “Consolidated Financial Statements, Joint Arrangements and Disclosure of Interests in Other Entities: Transition Guidance”. These amendments limit the requirement to present adjusted comparative information to the period immediately preceding the date of initial application and disclosures for unconsolidated structured entities in periods prior to the first annual period that MFRS 12 is applied are no longer required. The amendments also clarify that the “date of initial application” in MFRS 10 means “the beginning of the annual reporting period in which MFRS 10 is applied for the first time” and allow an entity to apply the earlier or revised versions of MFRS 3 “Business Combinations” and MFRS 127 if control was obtained before the effective date of the revised versions of these standards. These amendments are not expected to have any significant impact on the financial results and position of the Group and of the Company. NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2012 Continued