SCC Holdings Berhad Annual Report 2017

SCC Holdings Berhad (511477-A) | Annual Report 2017 39 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2017 (CONT’D) 2. Basis of Preparation (Cont’d) (a) Statement of Compliance (cont’d) Standards issued but not yet effective (cont’d) The initial application of the abovementioned MFRSs are not expected to have any significant impact on the financial statements of the Group and of the Company except as mentioned below: (i) MFRS 9 Financial Instruments (IFRS 9 issued by IASB in July 2014) MFRS 9, Financial Instruments sets out requirements for recognising and measuring financial assets, financial liabilities and some contracts to buy or sell non-financial items. This standard replaces MFRS 139 Financial Instruments: Recognition and Measurement . (a) Classification of financial assets MFRS 9 contains a new classification and measurement approach for financial assets that reflects the business model in which the assets are managed and their cash flow characteristics. MFRS 9 contains three (3) principal classification categories for financial assets: • Amortised Cost (“AC”); • Fair Value through Other Comprehensive Income (“FVOCI”); and • Fair Value through Profit or Loss (“FVTPL”). The standard eliminates the existing MFRS 139 categories of Held-to-Maturity (“HTM”), Loans and Receivables (“L&R”) and Available-for-Sale (“AFS”). Based on its assessment, the financial assets held by the Group and the Company as at 31 December 2017 will be reclassified to the following classifications: 2017 Existing classification under MFRS 139 New classification under MFRS 9 Group Note RM’000 Financial assets Investment securities (i) 68 AFS FVTOCI Trade receivables 15,402 L&R AC Other receivables 299 L&R AC Other investments 14,324 FVTPL FVTPL Cash and bank balances 6,443 L&R AC 2017 Existing classification under MFRS 139 New classification under MFRS 9 Company Note RM’000 Financial assets Other receivables 2 L&R AC Amount due from subsidiary companies 6,267 L&R AC Other investments 6,626 FVTPL FVTPL Cash and bank balances 895 L&R AC