2. SIGNIFICANT ACCOUNTING POLICIES (CONTD.) 2.2 Changes in accounting policies (contd.) The accounting policies adopted are consistent with those of the previous nancial year, except as follows: (contd.) (b) On 1 January 2022, the Group and the Company adopted the following amendments to MFRS mandatory for financial period beginning on or after 1 January 2022: Effective for annual period beginning on or after Amendments to MFRS 16 Leases: Covid-19-Related Rent Concessions 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 The adoption of the above amendments to MFRSs did not have any significant effect on the financial statements of the Group and of the Company. 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 the Company intend to adopt these standards, if applicable, when they become effective: Effective for annual period beginning on or after MFRS 17: Insurance Contracts (“MFRS 17”) and amendments to MFRS 17 1 January 2023 Amendments to MFRS 108: Accounting Policies, Changes in Accounting Estimates and Errors 1 January 2023 Amendments to MFRS 112: Income taxes 1 January 2023 Amendments to MFRS 16: Leases 1 January 2024 Amendments to MFRS 101: Presentation of Financial Statements 1 January 2024 Amendments to MFRS 10 and MFRS 128: Sale or Contribution of Assets between an Investor and its Associate or Joint Venture Deferred The Board of Directors expect that the adoption of the above amendments to MFRSs will not have a material impact on the financial statements in the period of initial application. 2. SIGNIFICANT ACCOUNTING POLICIES (CONTD.) 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. Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Specifically, the Group controls an investee if, and only if, the Group has: (i) Power over the investee (i.e existing rights that give it the current ability to direct the relevant activities of the investee); (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. Generally, there is a presumption that a majority of voting rights results in control. To support this presumption and when the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and circumstances in assessing whether it has power over an investee, including: (i) The contractual arrangement(s) with the other vote holders of the investee; (ii) Rights arising from other contractual arrangements; and (iii) The Group’s voting rights and potential voting right The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control. Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated financial statements from the date the Group gains control until the date the Group ceases to control the subsidiary. Profit or loss and each component of OCI are attributed to the equity holders of the parent of the Group and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies in line with the Group’s accounting policies. All intra-group assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Group are eliminated in full on consolidation. A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction. In such circumstances, the carrying amounts of the controlling and non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiary. Any difference between the amount by which the non-controlling interest is adjusted and the fair value of the consideration paid or received is recognised directly in equity and attributed to owners of the parent. If the Group loses control over a subsidiary, it derecognises the related assets (including goodwill), liabilities, noncontrolling interest and other components of equity, while any resultant gain or loss is recognised in profit or loss. Any investment retained is recognised at fair value. p.274 p.275 UEM EDGENTA BERHAD INTEGRATED ANNUAL REPORT 2022 1 2 3 4 5 6 7 8 9 FINANCIAL STATEMENTS Notes to the financial statements For the year ended 31 December 2022 Notes to the financial statements For the year ended 31 December 2022
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