NOTES TO THE FINANCIAL STATEMENTS
31 DECEMBER 2014 (CONT’D)
2.
BASIS OF PREPARATION (CONT'D)
2.2
Basis of Measurement (cont'd)
The Group and the Company use valuation techniques that are appropriate in the circumstances
and for which sufficient data are available to measure fair value, maximising the use of relevant
observable inputs and minimising the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are
categorised within the fair value hierarchy, described as follows, based on the lowest level input that
is significant to their fair value measurement as a whole:
- Level 1 Quoted (unadjusted) market prices in active markets for identical assets or liabilities.
- Level 2 Valuation techniques for which the lowest level input that is significant to their fair value
measurement is directly or indirectly observable.
- Level 3 Valuation techniques for which the lowest level input that is significant to their fair value
measurement is unobservable.
2.3
Functional and Presentation Currency
The financial statements are presented in Ringgit Malaysia (“RM”), which is also the Group’s and
the Company’s functional currency.
2.4
Adoption of Amendments/Improvements to MFRSs and IC Interpretations (“IC Int”)
The accounting policies adopted by the Group and by the Company are consistent with those of the
previous financial period except for the adoption of the following Standards that are mandatory for
the current financial year:
Effective for annual periods beginning on or after 1 January 2014
Amendments to MFRS 10, 12 and 127
Investment Entities
Amendments to MFRS 132
Offsetting Financial Assets and Financial Liabilities
Amendments to MFRS 136
Recoverable Amount Disclosures for Non-Financial Assets
Amendments to MFRS 139
Novation of Derivatives and Continuation of Hedge Accounting
IC Int 21
Levies
Initial application of the above standards did not have any material impact to the financial statements
of the Group and of the Company.
2.5
Standards Issued But Not Yet Effective
The Group and the Company have not applied the following Standards that have been issued by the
Malaysian Accounting Standards Board (“MASB”) but are not yet effective for the Group and for the
Company:
Effective for annual periods beginning on or after 1 July 2014
Amendments to MFRS 119
Defined Benefit Plans: Employee Contributions
Amendments to MFRSs
Annual improvements to MFRSs 2010-2012 Cycle
Amendments to MFRSs
Annual improvements to MFRSs 2011-2013 Cycle
Effective for annual periods beginning on or after 1 January 2016
MFRS 14
Regulatory Deferral Accounts
Amendments to MFRS 10 and MFRS 128
Investment Entities: Applying the Consolidation Exception
and Sale or Contribution of Assets between an Investor and its Associate or Joint Venture
Amendments to MFRS 11
Accounting for Acquisitions of Interests in Joint Operations
•
Pentamaster Corporation Berhad
(572307-U)
Annual Report 2014
45
