KUB Malaysia Berhad Annual Report 2021

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont’d) 2.1 Basis of Preparation of the Financial Statements (cont’d) New Standards and Amendments to MFRSs in Issue but Not Yet Effective At the date of authorisation for issue of these financial statements, the new MFRSs and Amendments to MFRSs relevant to the Group and the Company which were in issue but not yet effective and not early adopted by the Group and the Company are as listed below: Amendments to MFRSs Annual Improvement to MFRS Standards 2018 – 2020 2 Amendments to MFRS 3 Reference to Conceptual Framework 2 Amendments to MFRS 4 Extension of the Temporary Exemption from Applying MFRS 9 3 Amendment to MFRS 9, MFRS 139, Interest Rate Benchmark Reform - Phase 2 1 MFRS 7, MFRS 4, and MFRS 16 Amendments to MFRS 10 Sale or Contribution of Assets between an Investor and MFRS 128 and its Associate or Joint Venture 4 Amendments to MFRS 101 Classification of Liabilities as Current or Non-current 3 Amendments to MFRS 101 Disclosure of Accounting Policies 3 Amendments to MFRS 108 Definition of Accounting Estimates 3 Amendments to MFRS 112 Deferred Tax related to Assets and Liabilities arising from a Single Transaction 3 Amendments to MFRS 116 Property, Plant, and Equipment - Proceeds before Intended Use 2 Amendments to MFRS 137 Onerous Contract - Cost of Fulfilling a Contract 2 1 Effective for annual periods beginning on or after 1 January 2021. 2 Effective for annual periods beginning on or after 1 January 2022. 3 Effective for annual periods beginning on or after 1 January 2023. 4 Effective date deferred to a date to be announced by MASB. The initial application of the accounting standards, interpretations or amendments above are not expected to have any material financial impacts to the financial results of the Group and of the Company. 3. SIGNIFICANT ACCOUNTING POLICIES 3.1 Basis of Accounting The financial statements of the Group and of the Company have been prepared under the historical cost convention except as otherwise stated in the accounting policies. Historical cost is generally based on the fair value of the consideration given in exchange for assets. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Group takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in these consolidated financial statements is determined on such a basis, except for share‑based payment transactions that are within the scope of MFRS 2, leasing transactions that are within the scope of MFRS 16 Leases , and measurements that have some similarities to fair value but are not fair value, such as net realisable value in MFRS 102 Inventories or value in use in MFRS 136 Impairment of Assets . 63 ANNUAL REPORT 2021 FINANCIAL STATEMENTS