106 Annual Report 2021 Notes to the Financial Statements FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2021 2. BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS (CONT’D) (a) Statement of compliance (Cont’d) Standards and Amendments in Issue But Not Yet Effective (Cont’d) Amendments to MFRSs Annual Improvements to MFRS 2018 - 2020 Cycle3 1 Effective for annual periods beginning on or after 1 January 2021. 2 Effective for annual periods beginning on or after 1 April 2021. 3 Effective for annual periods beginning on or after 1 January 2022. 4 Effective immediately for annual periods beginning before 1 January 2023. 5 Effective for annual periods beginning on or after 1 January 2023. 6 Effective date deferred to a date to be announced by MASB. T he 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 and that the adoption of these standards and amendments will have no material impact on the financial statements of the Group and of the Company in the period of initial application. (b) Functional and presentation currency T he 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. (c) Significant accounting estimates and judgements S ignificant areas of estimation, uncertainty and critical judgements used in applying accounting principles that have significant effect on the amount recognised in the financial statements are described in the following paragraphs: (i) Revenue and cost of sales recognition (Notes 4 and 5) - revenue is recognised as and when the control of the asset is transferred to customers and it is probable that the Group will collect the consideration to which it will be entitled in exchange for the asset that will be transferred to the customer. T he Group recognises revenue from property development over the period of the contract by reference to the progress towards complete satisfaction of that performance obligation. Significant judgement is required in determining the progress towards complete satisfaction of that performance obligation, based on the Group’s efforts or inputs to the satisfaction of the performance obligation (i.e. by reference to the property development costs incurred to date as a percentage of the estimated total costs of development of the contract). T he total estimated costs are based on approved budgets, which require assessments and judgements to be made on changes in, for example, work scope, changes in costs and costs to completion. In making these judgements, management relies on past experience and the work of specialists.
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