Frontken Berhad Annual Report 2018

59 Frontken Corporation Berhad (651020-T) ANNUAL REPORT 2018 2. BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS (CONT’D) The Group has not applied in advance the following accounting standards and interpretations (including the LXW\NZ^NW]RJU JVNWMVNW]\ RO JWb ]QJ] QJ_N KNNW R\\^NM Kb ]QN 6JUJb\RJW *LLX^W]RWP <]JWMJ[M\ +XJ[M ۷6*<+۸ K^] J[N WX] bN] NOONL]R_N OX[ ]QN L^[[NW] ࠰WJWLRJU year# MFRSs and/or IC Interpretations (Including The Consequential Amendments) Effective Date MFRS 16 Leases 3JW^J[b " 6/;< 2W\^[JWLN ,XW][JL]\ 1 January 2021 2, 2W]N[Y[N]J]RXW >WLN[]JRW]b X_N[ 2WLXVN =Ja =[NJ]VNW]\ 3JW^J[b " *VNWMVNW]\ ]X 6/;< # -N࠰WR]RXW XO J +^\RWN\\ 1 January 2020 *VNWMVNW]\ ]X 6/;< "# 9[NYJbVNW] /NJ]^[N\ `R]Q 7NPJ]R_N ,XVYNW\J]RXW 3JW^J[b " *VNWMVNW]\ ]X 6/;< JWM 6/;< !# <JUN X[ ,XW][RK^]RXW\ XO *\\N]\ KN]`NNW JW Investor and its Associate or Joint Venture Deferred *VNWMVNW]\ ]X 6/;< JWM 6/;< !# -N࠰WR]RXW XO 6J]N[RJU 1 January 2020 *VNWMVNW]\ ]X 6/;< "# 9UJW *VNWMVNW] ,^[]JRUVNW] X[ <N]]UNVNW] 3JW^J[b " *VNWMVNW]\ ]X 6/;< !# 5XWP ]N[V 2W]N[N\]\ RW *\\XLRJ]N\ JWM 3XRW] ?NW]^[N\ 3JW^J[b " Amendments to References to the Conceptual Framework in MFRS Standards 1 January 2020 *WW^JU 2VY[X_NVNW]\ ]X 6/;< <]JWMJ[M\ , ۮ bLUN\ 3JW^J[b " The adoption of the above accounting standards and X[ interpretations (including the consequential amendments if any) R\ NaYNL]NM ]X QJ_N WX VJ]N[RJU RVYJL] XW ]QN ࠰WJWLRJU \]J]NVNW]\ XO ]QN 0[X^Y ^YXW ]QNR[ RWR]RJU JYYURLJ]RXW NaLNY] J\ OXUUX`\# 6/;< \N]\ X^] ]QN Y[RWLRYUN\ OX[ ]QN [NLXPWR]RXW VNJ\^[NVNW] Y[N\NW]J]RXW JWM MR\LUX\^[N XO UNJ\N\ JWM `RUU [NYUJLN ]QN L^[[NW] P^RMJWLN XW UNJ\N JLLX^W]RWP `QNW R] KNLXVN\ NOONL]R_N >WMN[ 6/;< ]QN LUJ\\R࠰LJ]RXW XO UNJ\N\ J\ NR]QN[ ࠰WJWLN UNJ\N\ X[ XYN[J]RWP UNJ\N\ R\ NURVRWJ]NM OX[ UN\\NN\ *UU UN\\NN\ J[N [NZ^R[NM ]X [NLXPWR\N ]QNR[ UNJ\NM J\\N]\ JWM ]QN [NUJ]NM UNJ\N XKURPJ]RXW\ RW ]QN \]J]NVNW] XO ࠰WJWLRJU YX\R]RXW `R]Q URVR]NM NaLNY]RXW\ The leased assets are subject to depreciation and the interest on lease liabilities are calculated using the effective RW]N[N\] VN]QXM =QN 0[X^Y R\ L^[[NW]Ub J\\N\\RWP ]QN ࠰WJWLRJU RVYJL] ]QJ] VJb J[R\N O[XV ]QN JMXY]RXW XO ]QR\ \]JWMJ[M =QN JVNWMVNW]\ ]X 6/;< " [NZ^R[N JW NW]R]b ]X ^\N ^YMJ]NM JL]^J[RJU J\\^VY]RXW\ ]X MN]N[VRWN L^[[NW] \N[_RLN LX\] JWM WN] RW]N[N\] OX[ ]QN [NVJRWMN[ XO ]QN JWW^JU [NYX[]RWP YN[RXM JO]N[ ]QN YUJW JVNWMVNW] L^[]JRUVNW] X[ \N]]UNVNW] `QNW ]QN NW]R]b [NVNJ\^[N\ R]\ WN] MN࠰WNM KNWN࠰] URJKRUR]b J\\N] =QN JVNWMVNW]\ `RUU KN JYYURNM prospectively of which the possible impacts upon its initial application cannot be reasonably determined at the VXVNW] 3. SIGNIFICANT ACCOUNTING POLICIES Critical Accounting Estimates And Judgements Key Sources of Estimation Uncertainty 6JWJPNVNW] KNURN_N\ ]QJ] ]QN[N J[N WX TNb J\\^VY]RXW\ VJMN LXWLN[WRWP ]QN O^]^[N JWM X]QN[ TNb \X^[LN\ XO N\]RVJ]RXW ^WLN[]JRW]b J] ]QN [NYX[]RWP MJ]N ]QJ] QJ_N J \RPWR࠰LJW] [R\T XO LJ^\RWP J VJ]N[RJU JMS^\]VNW] ]X ]QN LJ[[bRWP JVX^W]\ XO J\\N]\ JWM URJKRUR]RN\ `R]QRW ]QN WNa] ࠰WJWLRJU bNJ[ X]QN[ ]QJW J\ MR\LUX\NM KNUX`# (i) Impairment of Goodwill The assessment of whether goodwill is impaired requires an estimation of the value in use of the cash-generating ^WR] ]X `QRLQ ]QN PXXM`RUU R\ JUUXLJ]NM .\]RVJ]RWP J _JU^N RW ^\N JVX^W] [NZ^R[N\ VJWJPNVNW] ]X VJTN JW N\]RVJ]N XO ]QN NaYNL]NM O^]^[N LJ\Q ࠱X`\ O[XV ]QN LJ\Q PNWN[J]RWP ^WR] JWM JU\X ]X LQXX\N J \^R]JKUN MR\LX^W] [J]N RW X[MN[ ]X LJUL^UJ]N ]QN Y[N\NW] _JU^N XO ]QX\N LJ\Q ࠱X`\ =QN LJ[[bRWP JVX^W] XO PXXM`RUU J\ J] ]QN [NYX[]RWP MJ]N R\ MR\LUX\NM RW 7X]N ]X ]QN ࠰WJWLRJU \]J]NVNW]\ Notes To The Financial Statements (cont’d)