Al-`Aqar Healthcare REIT Annual Report 2019

06 FINANCIAL STATEMENT 118 2.1 Adoption of New Malaysian Financial Reporting Standards, Amendments to MFRSs, and Issues Committee Interpretations (“IC Interpretations”) In the current financial year, the Group and the Fund adopted all the new MFRSs, amendments to MFRSs and IC Interpretations issued by the Malaysian Accounting Standards Board (“MASB”) that are relevant to their operations and effective for annual financial periods commencing on or after 1 January 2019: MFRS 16 Leases Amendments to MFRS 9 Prepayment Features with Negative Compensation Amendments to MFRS 119 Plan Amendment, Curtailment or Settlement Amendments to MFRS 128 Long-term Interests in Associates and Joint Venture Amendments to MFRSs Annual Improvements to MFRSs 2015 - 2017 Cycle IC Interpretation 23 Uncertainty over Income Tax Payments The adoptions of these new MFRSs, amendments to MFRSs, and IC Interpretations did not result in significant changes to the accounting policies of the Group and the Fund and had no significant effect on the financial performance or position of the Group and of the Fund. 2.2 Standards and Amendments to MFRSs in issue but not yet effective At the date of the authorisation for issue of these financial statements, the new Standards and Amendments to MFRSs that are relevant to the Group and the Fund which were in issue but not yet effective and not early adopted by the Group and the Fund are as listed below: MFRS 17 Insurance Contracts 2 Amendments to MFRS 3 Definition of a Business 1 Amendments to MFRS 101 and MFRS 108 Definition of Material 1 Amendments to MFRS 9, MFRS 139 and MFRS 7 Interest Rate Benchmark Reform 1 Amendments to MFRS 10 and MFRS 128 Sale or Contribution of Assets between an Investor and its Associate or Joint Venture 3 MFRSs Amendments to References to the Conceptual Framework in MFRS Standards 1 1 Effective for annual periods beginning on or after 1 January 2020 2 Effective for annual periods beginning on or after 1 January 2021 3 Effective date deferred to a date to be determined and announced by MASB The Manager anticipates that the abovementioned Standards and Amendments will be adopted in the annual financial statements of the Group and of the Fund when they become effective and that the adoption of these Standards and Amendments will have no material impact on the financial statements of the Group and of the Fund in the period of initial application. 2. BASIS OF PREPARATION OF FINANCIAL STATEMENTS (CONTINUED) Notes To The Financial Statements For The Financial Year Ended 31 December 2019 (Continued)