NOTES TO THE FINANCIAL STATEMENTS
31 DECEMBER 2014 (CONT’D)
2.
BASIS OF PREPARATION (CONT'D)
2.5
Standards Issued But Not Yet Effective (cont’d)
Effective for annual periods beginning on or after 1 January 2016 (cont’d)
Amendments to MFRS 101 Presentation of Financial Statements
Disclosure Initiative
Amendments to MFRS 116 and MFRS 138
Clarification of Acceptable Methods of Depreciation and
Amortisation
Amendments to MFRS 116 and MFRS 141
Agriculture: Bearer Plants
Amendments to MFRS 127
Equity Method in Separate Financial Statements
Amendments to MFRSs
Annual Improvements to MFRSs 2012–2014 Cycle
Effective for annual periods beginning on or after 1 January 2017
MFRS 15
Revenue from Contracts with Customers
Effective for annual periods beginning on or after 1 January 2018
MFRS 9
Financial Instruments
(IFRS 9 issued by IASB in July 2014)
Amendments to MFRS 7
Mandatory Date of MFRS 9 and Transition Disclosures
The initial application of the above standards is not expected to have any material impacts to the
financial statements of the Group and of 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 the guidance in MFRS 139,
Financial Instruments: Recognition and Measurement
on
the classification and measurement of financial assets. Upon adoption of MFRS 9, financial assets will
be measured at either fair value or amortised cost.
The adoption of MFRS 9 will result in a change in accounting policy and is expected to affect the
measurement of its other investments which is presently categorised as available-for-sale financial
asset.
2.6
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.
Pentamaster Corporation Berhad
(572307-U)
•
Annual Report 2014
46
