196 YINSON HOLDINGS BERHAD ACCOUNTABILITY 4. STANDARDS, AMENDMENTS TO PUBLISHED STANDARDS AND INTERPRETATIONS TO EXISTING STANDARDS THAT ARE APPLICABLE TO THE GROUP AND THE COMPANY BUT NOT YET EFFECTIVE (CONTINUED) (b) Financial year beginning on/after 1 February 2026 (continued) (vi) Annual Improvements to MFRS Accounting Standards—Volume 11: Amendments to MFRS 107 “Statement of Cash Flows” The amendments provide guidance on the classification of cash flows arising from certain transactions, including cash receipts and payments that may involve multiple classifications. This refinement aims to align practice with the underlying principles of MFRS 107. The improvements also introduce enhanced disclosure requirements to ensure better transparency in the presentation of operating, investing, and financing activities. (vii) Amendments to MFRS 9 and MFRS 7 “Contracts Referencing Nature-dependent Electricity” The amendments provide guidance on the MFRS 9 ‘own-use exemption’ for contracts to buy and take delivery of electricity that expose an entity to variability in the underlying amount of electricity because the source of its generation depends on uncontrollable natural conditions e.g. the weather (‘contracts referencing naturedependent electricity’). The amendments also permit hedge accounting in MFRS 9 if these contracts referencing nature-dependent electricity are used as hedging instruments and add new MFRS 7 disclosure requirements to enable users to understand the effects of these contracts on an entity’s financial performance and cash flows. (c) Financial year beginning on/after 1 February 2027 (i) MFRS 18 “Presentation and Disclosure in Financial Statements” The amendments refine the classification and measurement of financial instruments, enhancing the consistency and transparency of financial reporting. This standard focuses on providing clearer guidance on the classification of financial assets and liabilities, taking into account the entity’s business model and the cash flow characteristics of the financial instruments. The adoption of MFRS 18 will have no impact on the Group and the Company’s net profit but will result in the changes of presentation of income statements on the grouping of income and expenses categories, as well as additional disclosure on management-defined performance measures. Management is currently assessing the detailed implications of applying MFRS 18 on the Group’s consolidated financial statements. (ii) MFRS 19 “Subsidiaries without Public Accountability: Disclosures” MFRS 19 provides a framework for disclosure requirements applicable to subsidiaries that do not have public accountability. This standard aims to enhance the transparency of financial reporting for private entities by streamlining disclosure requirements, ensuring that they are relevant to users of financial statements without being overly burdensome. The amendment is not expected to have a material impact on the Group’s financial statements. The Group intends to adopt these new and amended standards and interpretations, if applicable, when they become effective. 5. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS Estimates and judgements are continually evaluated by the Directors and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the current circumstances. The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, rarely equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are outlined below.
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