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AEMULUS HOLDINGS BERHAD
TA R G E T I N G T H E B U L L’ S E Y E
NOTES TO THE FINANCIAL STATEMENTS
(Cont’d)
– 30 SEPTEMBER 2016
2. BASIS OF PREPARATION (Cont’d)
2.4 Standards Issued But Not Yet Effective (Cont’d)
Effective date yet to be confirmed
Amendments to MFRS 10 and MFRS 128 Sale or Contribution of Assets between an Investor and its Associate or
Joint Venture
The initial application of the above standards is not expected to have any material impact to the financial statements
of the Group and the Company upon adoption, except as mentioned below:
MFRS 15 Revenue from Contracts with Customers
MFRS 15
replaces the guidance in
MFRS 111 Construction Contracts, MFRS 118 Revenue, IC Int 13 Customer
Loyalty Programmes, IC Int 15 Agreements for Construction of Real Estate, IC Int 18 Transfers of Assets from
Customers and IC Int 131 Revenue – Barter Transactions Involving Advertising Services.
Upon adoption of MFRS
15, it is expected that the timing of revenue recognition might be different as compared with the current practices.
The adoption of MFRS 15 will result in a change in accounting policy. The Group is currently assessing the financial
impact of adopting MFRS 15.
MFRS 9 Financial Instruments
MFRS 9 replaces MFRS 139
Financial Instruments: Recognition and Measurement
and all previous versions of MFRS
9. The new standard introduces new requirements for classification and measurement, impairment and hedge
accounting. MFRS 9 is effective for annual periods beginning on or after 1 January 2018, with early application
permitted. Retrospective application is required, but comparative information is not compulsory. The adoption of
MFRS 9 will have an effect on the classification and measurement of the Group’s other investment.
MFRS 16 Leases
MFRS 16 replaces MFRS 117 Leases. MFRS 16 eliminates the distinction between finance and operating leases. As
off-balance sheet will no longer be allowed except for some limited practical exemptions, all leases will be brought
onto the statements of financial position by recognising a “right-of-use” asset and a lease liability. In other words,
for a lessee that has material operating leases, the assets and liabilities reported on its statements of financial
position are expected to be different compared with the current position.
The Group is currently assessing the impact of MFRS 16 and plans to adopt the new standard on the required
effective date of 1 January 2019.
2.5 Significant Accounting Estimates and Judgements
The preparation of financial statements requires management to make 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 estimate is revised and in any future periods affected.
2.5.1 Judgements made in applying accounting policies
There are no significant areas of critical judgement in applying accounting policies that have any significant
effect on the amount recognised in the financial statements.