PRG Holdings Berhad Annual Report 2018

5. ADOPTION OF NEW MFRSs AND AMENDMENTS TO MFRSs (continued) 5.2 Explanation of transition to MFRSs (continued) Notes to the reconciliations (continued) (ii) Adoption of MFRS 9 (continued) (c) The MFRS 9 adjustments are mainly due to: (i) Reclassification of the financial assets and financial liabilities as follows: Classification Existing under New under FRS 139 MFRS 9 Group Financial assets Trade and other receivables L&R AC Amounts owing by joint ventures and associates L&R AC Cash and bank balances L&R AC Financial liabilities Trade and other payables OFL AC Amounts owing to joint ventures and associates OFL AC Borrowings OFL AC (ii) Additional credit losses to be recognised on trade and other receivables. 5.3 New MFRSs that have been issued, but only effective for annual periods beginning on or after 1 January 2019 The following are Standards of the MFRS Framework that have been issued by the MASB but have not been early adopted by the Group and the Company: Title Effective Date MFRS 16 Leases 1 January 2019 IC Interpretation 23 Uncertainty over Income Tax Treatments 1 January 2019 Amendments to MFRS 128 Long-term Interests in Associates and Joint Ventures 1 January 2019 Amendments to MFRS 9 Prepayment Features with Negative Compensation 1 January 2019 Amendments to MFRS 3 Annual Improvements to MFRS Standards 2015 - 2017 Cycle 1 January 2019 Amendments to MFRS 11 Annual Improvements to MFRS Standards 2015 - 2017 Cycle 1 January 2019 Amendments to MFRS 112 Annual Improvements to MFRS Standards 2015 - 2017 Cycle 1 January 2019 Amendments to MFRS 123 Annual Improvements to MFRS Standards 2015 - 2017 Cycle 1 January 2019 Amendments to MFRS 119 Plan Amendment, Curtailment or Settlement 1 January 2019 Amendments to References to the Conceptual Framework in MFRS Standards 1 January 2020 Amendments to MFRS 3 Definition of a Business 1 January 2020 Amendments to MFRS 101 and MFRS 108 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 The Group and the Company is in the process of assessing the impact of implementing these standards, since the effects would only be observable for future years. 2018 A N N U A L R E P O R T 106 notes to the financial statements 31 December 2018 (continued)