UEM EDGENTA BERHAD ANNUAL REPORT 2021 1 2 3 4 5 6 7 189 188 NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS FINANCIAL STATEMENTS 2. SIGNIFICANT ACCOUNTING POLICIES (CONTD.) 2.3 Standards issued but not yet effective The standards and interpretations that are issued but not yet effective up to the date of issuance of the Group’s and the Company’s financial statements are disclosed below. The Group and Company intend to adopt these standards, if applicable, when they become effective: Effective for annual periods beginning on or after Amendment to MFRS 16 Leases: Covid 19-Related Rent Concession beyond 30 June 2021 1 April 2021 Annual Improvements to MFRS Standards 2018−2020 1 January 2022 Amendments to MFRS 3 Business Combinations: Reference to conceptual framework 1 January 2022 Amendments to MFRS 116: Property, Plant and Equipment Property, plant and equipment - proceeds before intended use 1 January 2022 Amendments to MFRS 137: Provisions, Contingent Liabilities and Contingent Assets: Onerous Contracts - cost of fulfiling a contract 1 January 2022 Amendments to MFRS 17: Insurance Contracts 1 January 2023 Amendments to MFRS 101: Classification of liabilities as current or non-current 1 January 2023 Amendments to MFRS 101: Disclosure of Accounting Policies 1 January 2023 Amendments to MFRS 108: Definition of Accounting Estimates 1 January 2023 Amendments to MFRS 112: Deferred Tax related to Assets and Liabilities arising from a Single Transaction 1 January 2023 Amendments to MFRS 10 and MFRS 128: Sale or Contribution of Assets between an Investor and its Associate or Joint Venture Deferred The Amendments to MFRS and Annual Improvements to MFRS above are expected to have no significant impact on the financial statements of the Group and of the Company upon their initial application except for the changes in presentation and disclosure of financial information arising form the adoption of these Amendments to MFRS and Annual Improvements to MFRS. 2.4 Summary of significant accounting policies (a) Basis of consolidation and subsidiaries (i) Basis of consolidation The consolidated financial statements comprise the financial statements of the Company and its subsidiaries as at the reporting date. The financial statements of the subsidiaries used in the preparation of the consolidated financial statements are prepared for the same reporting date as the Company. Consistent accounting policies are applied for like transactions and events in similar circumstances. The Company controls an investee if and only if the Company has all the following: (i) Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the investee); 2. SIGNIFICANT ACCOUNTING POLICIES (CONTD.) 2.4 Summary of significant accounting policies (contd.) (a) Basis of consolidation and subsidiaries (contd.) (i) Basis of consolidation (contd.) The Company controls an investee if and only if the Company has all the following: (contd.) (ii) Exposure, or rights, to variable returns from its involvement with the investee; and (iii) The ability to use its power over the investee to affect its returns. When the Company has less than a majority of the voting rights of an investee, the Company considers the following in assessing whether or not the Company’s voting rights in an investee are sufficient to give it power over the investee: (i) The size of the Company’s holding of voting rights relative to the size and dispersion of holdings of the other vote holders; (ii) Potential voting rights held by the Company, other vote holders or other parties; (iii) Rights arising from other contractual arrangements; and (iv) Any additional facts and circumstances that indicate that the Company has, or does not have, the current ability to direct the relevant activities at the time that decisions need to be made, including voting patterns at previous shareholders’ meetings. Subsidiaries are consolidated when the Company obtains control over the subsidiary and ceases when the Company loses control of the subsidiary. All intra-group balances, income and expenses and unrealised gains and losses resulting from intra-group transactions are eliminated in full. Losses within a subsidiary are attributed to the non-controlling interests even if that results in a deficit balance. Changes in the Group’s ownership interests in subsidiaries that do not result in the Group losing control over the subsidiaries are accounted for as equity transactions. The carrying amounts of the Group’s interests and the non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. The resulting difference is recognised directly in equity and attributed to owners of the Company. When the Group loses control of a subsidiary, a gain or loss calculated as the difference between (i) the aggregate of the fair value of the consideration received and the fair value of any retained interest and (ii) the previous carrying amount of the assets and liabilities of the subsidiary and any noncontrolling interest, is recognised in profit or loss. The subsidiary’s cumulative gain or loss which has been recognised in other comprehensive income and accumulated in equity are reclassified to profit or loss or where applicable, transferred directly to retained earnings. The fair value of any investment retained in the former subsidiary at the date control is lost is regarded as the cost on initial recognition of the investment.
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