195 INTEGRATED ANNUAL REPORT 2025 ACCOUNTABILITY | NOTES TO THE FINANCIAL STATEMENTS 4. STANDARDS, AMENDMENTS TO PUBLISHED STANDARDS AND INTERPRETATIONS TO EXISTING STANDARDS THAT ARE APPLICABLE TO THE GROUP AND THE COMPANY BUT NOT YET EFFECTIVE (a) Financial year beginning on/after 1 February 2025 (i) Amendments to MFRS 121 “Lack of Exchangeability” The amendments clarify that a currency is exchangeable when an entity is able to exchange it into another currency within a time frame that allows for a normal administrative delay and through a market or exchange mechanism that creates enforceable rights and obligations. If an entity can only obtain no more than an insignificant amount of the other currency at the measurement date for the specified purpose, then the currency is not exchangeable. In such cases, the entity is required to estimate the spot exchange rate at the measurement date. (b) Financial year beginning on/after 1 February 2026 (i) Annual Improvements to MFRS Accounting Standards—Volume 11: Amendments to MFRS 9 and MFRS 7 “Amendments to the Classification and Measurement of Financial Instruments” The amendments aim to enhance the clarity and consistency of financial reporting related to the classification and measurement of financial instruments. These amendments introduce important changes to the assessment of financial instruments based on the entity’s business model and the nature of the cash flows. The amendments to MFRS 7 require additional disclosures related to the classification and measurement of financial instruments, enhancing transparency for users of financial statements. (ii) Annual Improvements to MFRS Accounting Standards—Volume 11: Amendments to MFRS 7 “Financial Instruments: Disclosures” The amendments aim to enhance the clarity and consistency of disclosures related to financial instruments. The amendments focus on improving the information provided regarding the risks and uncertainties associated with financial instruments. This includes refining the disclosure requirements for credit risk, liquidity risk, and the fair value hierarchy. (iii) Annual Improvements to MFRS Accounting Standards—Volume 11: Amendments to MFRS 9 “Financial Instruments” The amendments clarify the conditions under which financial liabilities are to be derecognised, focusing on refinements related to the exchange of instruments or substantial modifications. This helps entities in more consistently applying the principles of de-recognition. (iv) Annual Improvements to MFRS Accounting Standards—Volume 11: Amendments to MFRS 1 “First-time Adoption of Malaysian Financial Reporting Standards” The amendments provide an exemption that allows first-time adopters to reset cumulative translation differences to zero at the date of transition to MFRS. This exemption simplifies the process for entities that had previously recognised translation differences in other comprehensive income. The improvements also clarify the treatment of borrowing costs for first-time adopters. This aims to align the treatment of such costs with that of other standards to ensure consistency. (v) Annual Improvements to MFRS Accounting Standards—Volume 11: Amendments to MFRS 10 “Consolidated Financial Statements” The amendments provide additional guidance on the consolidation exemption for investment entities, including clearer criteria to help determine when a parent entity should consolidate its subsidiaries or measure them at fair value. The amendments offer clarity on specific control assessments related to entities where the parent does not have the majority of voting rights but controls the entity through other means (e.g., contractual arrangements).
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