Ni Hsin Berhad Annual Report 2017

1. Basis of preparation (continued) (a) Statement of compliance (continued) MFRSs, Interpretations and amendments effective for annual periods beginning on or after 1 January 2021 • MFRS 17, Insurance Contracts MFRSs, Interpretations and amendments effective for annual periods beginning on or after a date yet to be confirmed • Amendments to MFRS 10, Consolidated Financial Statements and MFRS 128, Investments in Associates and Joint Ventures – Sale or Contribution of Assets between an Investor and its Associate or Joint Venture The Group and the Company plan to apply the abovementioned accounting standards, amendments and interpretations: • from the annual period beginning on 1 January 2018 for those accounting standards, amendments and interpretation that are effective for annual periods beginning on or after 1 January 2018, except for Amendments to MFRS 1, Amendments to MFRS 2, Amendments to MFRS 4 and Amendments to MFRS 128 which are not applicable to the Group and the Company. • from the annual period beginning on 1 January 2019 for those accounting standard, amendments and interpretation that are effective for annual periods beginning on or after 1 January 2019, except for Amendments to MFRS 11 and Amendments to MFRS 128 which are not applicable to the Group and the Company. The Group and the Company do not plan to apply MFRS 17, Insurance Contracts that is effective for annual periods beginning on or after 1 January 2021 as it is not applicable to the Group and the Company. The initial application of the accounting standards, amendments or interpretations are not expected to have any material financial impacts to the current period and prior period financial statements of the Group and the Company except as mentioned below: (i) MFRS 15, Revenue from Contracts with Customers MFRS 15 replaces the guidance in MFRS 111, Construction Contracts , MFRS 118, Revenue , IC Interpretation 13, Customer Loyalty Programmes , IC Interpretation 15, Agreements for Construction of Real Estate , IC Interpretation 18, Transfers of Assets from Customers and IC Interpretation 131, Revenue - Barter Transactions Involving Advertising Services . The Group and the Company have assessed the estimated impact that the initial application of MFRS 15 will have on its consolidated financial statements as at 1 January 2018 as below. The estimated impact on initial application is based on assessment undertaken to date and the actual impacts of adopting the standard may change because: • the Group and the Company have not finalised the testing and assessment of controls over its new accounting system; • the new accounting policies are subject to change until the Group and the Company present its first financial statements that include the date of initial application. Estimated adjustments Estimated adjusted As reported at due to adoption of opening balance 31 December 2017 MFRS 15 at 1 January 2018 Group RM’000 RM’000 RM’000 Trade and other payables (6,814) 2,113 (4,701) Contract liabilities - (2,113) (2,113) Retained earnings (1,670) - (1,670) Notes to the financial statements (continued) Annual Report 2017 50