SCC Holdings Berhad Annual Report 2018

SCC Holdings Berhad | Annual Report 2018 44. NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2018 (CONT’D) 2. Basis of Preparation (cont’d) (a) Statement of compliance (cont’d) Standards issued but not yet effective The Group and the Company have not applied the following new MFRSs, new interpretations and amendments to MFRSs that have been issued by the MASB but are not yet effective for the Group and the Company: Effective dates for financial periods beginning on or after MFRS 16 Leases 1 January 2019 IC Interpretation 23 Uncertainty over Income Tax Treatments 1 January 2019 Amendments to MFRS 9 Prepayment Features with Negative Compensation 1 January 2019 Amendments to MFRS 119 Plan Amendment, Curtailment or Settlement 1 January 2019 Amendments to MFRS 128 Long-term interests in Associates and Joint Ventures 1 January 2019 Annual Improvements to MFRSs 2015 – 2017 Cycle: • Amendments to MFRS 3 1 January 2019 • Amendments to MFRS 11 1 January 2019 • Amendments to MFRS 112 1 January 2019 • Amendments to MFRS 123 1 January 2019 Amendments to References to the Conceptual Framework in MFRS Standards 1 January 2020 Amendments MFRS 3 Definition of a Business 1 January 2020 Amendments MFRS 101 Definition of Material 1 January 2020 MFRS 17 Insurance Contracts 1 January 2021 Amendments to MFRS 10 and MFRS 128 Sale or Contribution of Assets between an Investor and its Associate or Joint Venture Deferred until further notice The Group and the Company plan to apply the abovementioned accounting standards, interpretation and amendments when they become effective, except for MFRS 17 Insurance Contracts , 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 financial statements of the Group and the Company except as mentioned below: MFRS 16 Leases MFRS 16, which upon the effective date will supersede MFRS 117 Leases, introduces a single lessee accounting model and requires a lessee to recognise assets and liabilities for all leases with a term of more than 12 months, unless the underlying asset is of low value. Specifically, under MFRS 16, a lessee is required to recognise a right-of-use asset representing its right to use the underlying leased asset and a lease liability representing its obligation to make lease payments. Accordingly, a lessee should recognise depreciation of the right-of-use asset and interest on the lease liability, and also classifies cash repayments of the lease liability into a principal portion and an interest portion and presents them in the statement of cash flows. Also, the right-of-use asset and the lease liability are initially measured on a present value basis. The measurement includes non-cancellable lease payments and also includes payments to be made in optional periods if the lessee is reasonably certain to exercise an option to extend the lease, or not to exercise an option to terminate the lease. This accounting treatment is significantly different from the lessee accounting for leases that are classified as operating leases under the predecessor standard, MFRS 117.