Frontken Corporation Berhad 200401012517 (651020-T) • ANNUAL REPORT 2023 92 NOTES TO THE FINANCIAL STATEMENTS (CONT’D) 2. BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS (CONT’D) 2.2 The Group and the Company have not applied in advance the following accounting standards and/or 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 Amendments to MFRS 10 and MFRS 128: Sale or Contribution of Assets between an Investor and its Associate or Joint Venture Deferred Amendments to MFRS 16: Lease Liability in a Sale and Leaseback 1 January 2024 Amendments to MFRS 101: Classification of Liabilities as Current or Non-current 1 January 2024 Amendments to MFRS 101: Non-current Liabilities with Covenants 1 January 2024 Amendments to MFRS 107 and MFRS 7: Supplier Finance Arrangements 1 January 2024 Amendments to MFRS 121: Lack of Exchangeability 1 January 2025 The adoption of the above accounting standards and/or interpretations (including the consequential amendments, if any) is expected to have no material impact on the financial statements of the Group and of the Company upon their initial application. 3. MATERIAL ACCOUNTING POLICY INFORMATION Critical Accounting Estimates And Judgements Key Sources of Estimation Uncertainty Management believes that there are no key assumptions made concerning the future, and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year other than as disclosed below: (i) Impairment of Goodwill on Consolidation The assessment of whether goodwill is impaired requires an estimation of the value in use of the cashgenerating unit to which the goodwill is allocated. Estimating a value in use amount requires management to make an estimate of the expected future cash flows from the cash-generating unit and also to choose a suitable discount rate in order to calculate the present value of those cash flows. The carrying amount of goodwill on consolidation as at the reporting date is disclosed in Note 15 to the financial statements. (ii) Impairment of Property, Plant and Equipment and Right-Of-Use Assets The Group determines whether an item of its property, plant and equipment and right-of-use assets is impaired by evaluating the extent to which the recoverable amount of the asset is less than its carrying amount. This evaluation is subject to changes such as market performance, economic and political situation of the country. A variety of methods is used to determine the recoverable amount, such as valuation reports and discounted cash flows. The carrying amounts of property, plant and equipment and right-of-use assets as at the reporting date are disclosed in Notes 11 and 12 to the financial statements respectively.
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