MKH Annual Report 2020

106 FINANCIAL STATEMENTS ANNUAL REPORT 2020 2. BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS (a) Statement of compliance (Cont’d) Standards and Amendments in Issue But Not Yet Effective (Cont’d) Amendments to MFRS 101  and MFRS 108 Definition of Material 1 Amendments to MFRS 9,  MFRS 139 and MFRS 7 Interest Rate Benchmark Reform 1 Amendments to MFRS 16 Covid-19 - Related Rent Concessions 2 Amendments to MFRS 9,  MFRS 139 and MFRS 7, MFRS 4 and MFRS 16 Interest Rate Benchmark Reform - Phase 2 3 Amendments to MFRS 116 Property, Plant and Equipment - Proceeds Before Intended Use 4 Amendments to MFRS 137 Onerous Contracts - Cost of Fulfilling a Contract 4 Amendments to MFRS 4 Extension of Temporary Exemption from Applying MFRS 9 5 Amendments to MFRSs Annual Improvements to MFRS 2018 - 2020 Cycle 4 1 Effective for annual periods beginning on or after 1 January 2020. 2 Effective for annual periods beginning on or after 1 June 2020. 3 Effective for annual periods beginning on or after 1 January 2021. 4 Effective for annual periods beginning on or after 1 January 2022. 5 Effective for annual periods beginning on or after 1 January 2023. 6 Effective date deferred to a date to be announced by MASB. The directors anticipate that the abovementioned standards and amendments 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 and amendments will have no material impact on the financial statements of the Group and the Company in the period of initial application. (b) Functional and presentation currency The individual financial statements of each entity in the Group are measured using the currency of the primary economic environment in which the entity operates (“the functional currency”). The financial statements of the Group and of the Company are presented in Ringgit Malaysia (“RM”), which is also the Company’s functional currency. All financial information presented in RM has been rounded to the nearest RM, unless otherwise stated.