MKH Annual Report 2019

107 M K H B e r h a d 2. BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS (CONT’D) (a) Statement of compliance (Cont’d) Impact of initial application of MFRS 141 Agriculture and Amendments to MFRS 116 and MFRS 141 Agriculture: Bearer Plants (Cont’d) The adoption of MFRS 141 has been applied retrospectively and comparatives were restated. The adoption has resulted in additional depreciation charges to profit or loss in the current and previous financial years. The effects of the transition to MFRS Framework are presented in Note 44. Standards, Amendments and IC Interpretations in Issue But Not Yet Effective At the date of authorisation for issue of these financial statements, the newand revisedMFRSs, amendments to MFRSs 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: MFRS 16 Leases 1 MFRS 17 Insurance Contracts 3 MFRSs Amendments to Reference to the Conceptual Framework in MFRS Standards 2 Amendments to MFRS 3 Definition of a Business 2 Amendments to MFRS 9 Prepayments Features with Negative Compensation 1 Amendments to MFRS 10 Sale or Contribution of Assets between an Investor and its Associate or  and MFRS 128  Joint Venture 4 Amendments to MFRS 101 Definition of Material 2  and MFRS 108 Amendments to MFRS 119 Plan Amendment, Curtailment or Settlement 1 Amendments to MFRS 128 Long Term Interest in Associates and Joint Venture 1 Amendments to MFRSs Annual Improvements to MFRSs 2015 - 2017 Cycle 1 IC Interpretation 23 Uncertainty Over Income Tax Treatments 1 1 Effective for annual periods beginning on or after 1 January 2019. 2 Effective for annual periods beginning on or after 1 January 2020. 3 Effective for annual periods beginning on or after 1 January 2021. 4 Effective date deferred to a date to be announced by MASB. The directors anticipate that the abovementioned MFRSs, amendments to MFRSs and IC Interpretations will be adopted in the annual financial statements of the Group and the Company when they become effective and that 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 except as disclosed below. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2019