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95
Maxis Berhad
Annual Report 2014
Notes to the
Financial Statements
31 December 2014
2 BASIS OF PREPARATION (CONTINUED)
(a) Amendments to published standards and Issues Committee (“IC”) Interpretation to existing standard that are effective
and applicable to the Group and the Company
The amendments to published standards and IC Interpretation to existing standard that are effective for the Group’s and the
Company’s financial year beginning on or after 1 January 2014 are as follows:
• Amendments to MFRS 10, MFRS 12, MFRS 127 “Investment Entities”
• Amendments to MFRS 132 “Offsetting Financial Assets and Financial Liabilities”
• Amendments to MFRS 139 “Novation of Derivatives and Continuation of Hedge Accounting”
• IC Interpretation 21 “Levies”
The adoption of the above amendments to published standards and IC Interpretation to existing standard did not have any
significant effect on the consolidated and separate financial statements of the Group and the Company respectively upon their
initial application.
(b) Standards and amendments to published standards that are applicable to the Group and the Company but not yet effective
A number of new standards and amendments to published standards are effective for annual periods beginning after 1 January
2014. None of these is expected to have a significant effect on the consolidated and separate financial statements of the Group
and the Company respectively, except for standards set out below:
• MFRS 15 “Revenue from Contracts with Customers” (effective from 1 January 2017) deals with revenue recognition and
establishes principles for reporting useful information to users of financial statements about the nature, amount, timing
and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. Revenue is recognised when
a customer obtains control of a goods or service and thus has the ability to direct the use and obtain the benefits from
the goods or service. The standard replaces MFRS 118 “Revenue” and MFRS 111 “Construction Contracts” and related
interpretations. The Group and Company are currently assessing the impact of MFRS 15.
• MFRS 9 “Financial Instruments” (effective from 1 January 2018) will replace MFRS 139 “Financial Instruments: Recognition
and Measurement”. The complete version of MFRS 9 was issued in November 2014.
MFRS 9 retains but simplifies the mixed measurement model in MFRS 139 and establishes three primary measurement
categories for financial assets: amortised cost, fair value through profit or loss and fair value through other comprehensive
income. The basis of classification depends on the entity’s business model and the contractual cash flow characteristics of
the financial asset. Investments in equity instruments are required to be measured at fair value through profit or loss with the
irrevocable option at inception to present changes in fair value in other comprehensive income (provided the instrument is
not held for trading). A debt instrument is measured at amortised cost only if the entity is holding it to collect contractual cash
flows and the cash flows represent principal and interest.
