My EG Services Berhad Annual Report 2019

ANNUAL REPORT 2019 201 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL PERIOD ENDED 31 DECEMBER 2019 (CONT’D) FINANCIAL STATEMENTS 53. SIGNIFICANT EVENTS OCCURRING AFTER THE REPORTING PERIOD (CONT’D) (g) On 1 June 2020, the Company proposed to undertake the following:- (i) establishment of a dividend reinvestment plan that provides shareholders of the Company with an option to elect to reinvest their cash dividend declared by the Company into new ordinary shares in MYEG (“Proposed DRP”); and (ii) establishment of an ESOS of up to 10% of the total number of issued shares of the Company (excluding treasury shares) at any point in time over the duration of the ESOS for eligible persons (“Proposed ESOS”); and (iii) diversification of the existing business of the Group to include the provision of financial services. Subsequently on 12 June 2020, the Board announced that the application for the above proposals have been submitted to Bursa Securities. 54. CHANGES IN ACCOUNTING POLICIES Initial Application of MFRS 9 The Group has adopted MFRS 9 without restating any comparative information (transitional exemption). Therefore, the financial impacts arising from the new classification and measurement of financial instruments, and the new impairment requirements are not reflected in the its consolidated statement of financial position as at 30 September 2018; but are recognised in the opening consolidated statement of financial position on 1 October 2018 (date of initial application of MFRS 9). The main impacts resulting from the changes made are summarised below:- Classification and Carrying Amount Under MFRS 139 Under MFRS 9 Transition Adjustment The Group RM’000 RM’000 RM’000 (a) Reclassification from available-for-sale financial assets to fair value through other comprehensive income The Group intends to hold the Investments in unquoted shares for long-term strategic purposes. These investments were measured at cost in prior periods. As permitted by MFRS 9, the Group has designated such investments as fair value through other comprehensive income, to be measured at fair value at each reporting date. AFS 28,527 FVOCI 28,527 -