56
FRONTKEN CORPORATION BERHAD
(651020-T)
ANNUAL REPORT 2014
NOTES TO THE
FINANCIAL STATEMENTS
(cont’d)
2.
BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS (CONT’D)
2.2 The Group has not applied in advance the following accounting standards and interpretations (including
the consequential amendments, if any) that have been issued by the Malaysian Accounting Standards
Board (MASB) but are not yet effective for the current financial year:-
MFRSs and/or IC Interpretations (Including The Consequential Amendments) Effective Date
MFRS 9 Financial Instruments (IFRS 9 issued by IASB in July 2014)
1 January 2018
MFRS 15 Revenue from Contracts with Customers
1 January 2017
Amendments to MFRS 10 and MFRS 128 (2011): Sale or Contribution of Assets
between an Investor and its Associate or Joint Venture
1 January 2016
Amendments to MFRS 11: Accounting for Acquisitions of Interests in
Joint Operations
1 January 2016
Amendments to MFRS 10, MFRS 12 and MFRS 128 (2011): Investment
Entities – Applying the Consolidation Exception
1 January 2016
Amendments to MFRS 101: Presentation of Financial Statements – Disclosure
Initiative
1 January 2016
Amendments to MFRS 116 and MFRS 138: Clarification of Acceptable
Methods of Depreciation and Amortisation
1 January 2016
Amendments to MFRS 116 and MFRS 141: Agriculture – Bearer Plants
1 January 2016
Amendments to MFRS 119: Defined Benefit Plans – Employee Contributions
1 July 2014
Amendments to MFRS 127 (2011): Equity Method in Separate Financial
Statements
1 January 2016
Annual Improvements to MFRSs 2010 – 2012 Cycle
1 July 2014
Annual Improvements to MFRSs 2011 – 2013 Cycle
1 July 2014
Annual Improvements to MFRSs 2012 – 2014 Cycle
1 January 2016
The above accounting standards and interpretations (including the consequential amendments) are not
relevant to the Group’s operations except as follows:-
(i)
MFRS 9 (IFRS 9 issued by IASB in July 2014) replaces the existing guidance in MFRS 139 and
introduces a revised guidance on the classification and measurement of financial instruments,
including a single forward-looking ‘expected loss’ impairment model for calculating impairment on
financial assets, and a new approach to hedge accounting. Under this MFRS 9, the classification of
financial assets is driven by cash flow characteristics and the business model in which a financial
asset is held.
(ii)
MFRS 15 establishes a single comprehensive model for revenue recognition and will supersede
the current revenue recognition guidance and other related interpretations when it becomes
effective. Under MFRS 15, an entity shall recognise revenue when (or as) a performance obligation
is satisfied, i.e. when ‘control’ of the goods or services underlying the particular performance
obligation is transferred to the customers. In addition, extensive disclosures are required by MFRS
15. The Group anticipates that the application of MFRS 15 in the future may have a material
impact on the amounts reported and disclosures made in the financial statements. However, it
is not practicable to provide a reasonable estimate of the financial impacts of MFRS 15 until the
Group performs a detailed review.
(iii)
The amendments to MFRS 119 simplify the accounting treatment of contributions from employees
and third parties to defined benefit plans. Contributions that are independent of the number
of years of service shall be recognised as a reduction in the service cost in the period in which
the related service is rendered. For contributions that are dependent on the number of years of
service, the Group is required to attribute those contributions to periods of service using either
based on the plan’s contribution formula or on a straight-line basis, as appropriate. However, it
is not practicable to provide a reasonable estimate of the financial impacts of MFRS 119 until the
Group performs a detailed review.
