MKH Annual Report 2018

98 MKH Berhad Annual Report 2018 2. BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS (Cont’d) (a) Statement of compliance (Cont’d) (i) Adoption of New and Revised Financial Reporting Standards In the current financial year, the Group and the Company adopted all the amendments of FRSs issued by the MASB and e ective for financial periods beginning on or after 1 October 2017: Amendments to FRS 107 Disclosure Initiative Amendments to FRS 112 Recognition of Deferred Tax Assets for Unrealised Losses Amendments to FRSs Annual Improvements to FRSs 2014-2016 Cycle The adoption of these amendments to FRSs did not result in significant changes in the accounting policies of the Group and of the Company and has no significant e ect on the financial performance or position of the Group and of the Company except as disclosed below: Amendments to FRS 107 Disclosure Initiative The Group and the Company have applied these amendments for the first time in the current year. The amendments require an entity to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities, including both cash and non-cash changes. The Group’s and the Company’s liabilities arising from financing activities consist of loans and borrowings. A reconciliation between the opening and closing balances of these items is provided in Note 28. Consistent with the transition provisions of the amendments, the Group and the Company have not disclosed comparative information for the prior period. Apart from the additional disclosure in Note 28, the application of these amendments has had no impact on the Group’s and the Company’s financial statements. (ii) New and Revised Standards, Amendments and Issues Committee Interpretations (“IC Interpretations”) in issue but not yet e ective At the date of authorisation for issue of these financial statements, the new and revised Standards, Amendments and IC Interpretations which were in issue but not yet e ective 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) 1 Amendments to FRS 2 Classification and Measurement of Share-based Payment Transactions 1 Amendments to FRS 4 Applying FRS 9 Financial Instruments with FRS 4 Insurance Contracts 1 Amendments to FRS 10 Sale or Contribution of Assets between an Investor and its Associate or and FRS 128 Joint Venture 3 Amendments to FRS 140 Transfers of Investment Property 1 IC Interpretation 22 Foreign Currency Transactions and Advance Consideration 1 IC Interpretation 23 Uncertainty over Income Tax Payments 2 Amendments to FRSs Annual Improvements to FRSs 2014 - 2016 Cycle 1 1 E ective for annual periods beginning on or after 1 January 2018, with early application permitted. 2 E ective for annual periods beginning on or after 1 January 2019, with early application permitted. 3 E ective date deferred to a date to be determined and announced, with earlier application permitted. The abovementioned Standards, Amendments and IC Interpretations will not be adopted in the annual financial statements of the Group and of the Company when they become e ective. As the Group falls within the scope definition of Transitioning Entities, the Group is required to adopt new MFRS Framework for financial year ending 30 September 2019 as mentioned in Note 2(a)(iii) below. FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2018 NOTES TO THE FINANCIAL STATEMENTS