MKH Annual Report 2017

2. BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS (continued) (a) Statement of compliance (continued) (i) Standards, Amendments and IC Interpretations in issue but not yet effective At the date of authorisation for issue of these financial statements, the new and revised FRSs, Amendments to FRSs and Issues Committee Interpretations (“IC Interpretations”) which were in issue but not yet effective and not early adopted by the Group and the Company are as listed below: FRS 9 Financial Instruments (IFRS 9 as issued by IASB in July 2014) 2 Amendments to FRS 2 Classification and Measurement of Share-based Payment Transactions 2 Amendments to FRS 4 Applying FRS 9 Financial Instruments with FRS 4 Insurance Contracts 2 Amendments to FRS 10 Sale or Contribution of Assets between an Investor and its Associate or and FRS 128 Joint Venture 4 Amendments to FRS 107 Disclosure Initiative1 Amendments to FRS 112 Recognition of Deferred Tax Assets for Unrealised Losses 1 Amendments to FRS 140 Transfers of Investment Property 2 IC Interpretation 22 Foreign Currency Transactions and Advance Consideration 2 IC Interpretation 23 Uncertainty Over Income Tax Treatments 3 Annual Improvements to FRSs 2014 - 2016 cycle 1 or 2 1 Effective for annual periods beginning on or after 1 January 2017, with earlier application permitted. 2 Effective for annual periods beginning on or after 1 January 2018, with earlier application permitted. 3 Effective for annual periods beginning on or after 1 January 2019, with earlier application permitted. 4 Effective date deferred to a date to be determined and announced, with earlier application permitted. The directors anticipate that the abovementioned Standards and Amendments will be adopted in the annual financial statements of the Group and of the Company when they become effective except for the Standards that is effective for annual periods beginning on or after 1 January 2018 as the Group is under transitioning entity. The adoption of these Standards will have no material impact on the financial statements of the Group and the Company in the period of initial application. (ii) Malaysian Financial Reporting Standards On 19 November 2011, the MASB issued a new MASB approved accounting framework, the Malaysian Financial Reporting Standards Framework (“MFRS Framework”), a fully-IFRS compliant framework. Entities other than private entities shall apply the MFRS Framework for annual periods beginning on or after 1 January 2012, with the exception of Transitioning Entities. Transitioning Entities, being entities within the scope of MFRS 141 Agriculture and/or IC Interpretation 15: Agreements for the Construction of Real Estate , including its parents, significant investors and venturers were allowed to defer the adoption of the MFRS Framework until such time as mandated by the MASB. On 2 September 2014, with the issuance of MFRS 15 Revenue from Contracts with Customers and Amendments to MFRS 116 and MFRS 141 Agriculture: Bearer Plants , the MASB announced that Transitioning Entities which have chosen to continue with the FRS Framework is now required to adopt the MFRS Framework latest by 1 January 2017. On 8 September 2015, the MASB confirmed that the effective date of MFRS 15 will be deferred to annual periods beginning on or after 1 January 2018. However, early application of MFRS 15 is still permitted. Notes to the Financial Statements For the Financial Year ended 30 September 2017 97 MKH Berhad • Annual Report 2017