Serba Dinamik Annual Report 2019

224 2019 ANNUAL REPORT FINANCIAL STATEMENTS SERBA DINAMIK HOLDINGS BERHAD 1. BASIS OF PREPARATION (CONTINUED) (a) Statement of compliance (continued) The Group and the Company plan to apply the abovementioned accounting standards, amendments and interpretations: from the annual period beginning on 1 January 2020 for these amendments that are effective for annual periods beginning on or after 1 January 2020. from the annual period beginning on 1 January 2022 for the amendment that is effective for annual periods beginning on 1 January 2022. The Group and the Company do not plan to apply MFRS 17, Insurance Contracts that is effective for annual periods beginning on 1 January 2021 as it is not applicable to the Group and the Company. The initial application of the accounting standards, interpretations or amendments are not expected to have any material financial impacts to the current period and prior period financial statements of the Group and of the Company. (b) Basis of measurement The financial statements have been prepared on the historical cost basis, other than as disclosed in Note 2. (c) Functional and presentation currency The individual financial statements of each entity in the Group are presented in the functional currency of the primary economic environment in which the entity operates, which is the functional currency. These financial statements are presented in Ringgit Malaysia (“RM”), which is the Company’s functional currency and presentation currency. All financial information is presented in RM and has been rounded to the nearest thousand, unless otherwise stated. (d) Use of estimates and judgements The preparation of the financial statements in conformitywithMFRSs requiresmanagement tomake judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected. There are no significant areas of estimation uncertainty and critical judgements in applying accounting policies that have significant effect on the amounts recognised in the financial statements. N O T E S T O T H E F I N A N C I A L S TAT E M E N T S