Sasbadi Annual Report 2019

PAGE 66 SASBADI HOLDINGS BERHAD FINANCIAL STATEMENTS (continued) 1. Basis of preparation (continued) (d) Use of estimates and judgements The preparation of the financial statements in conformity with MFRSs requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected. There are no significant areas of estimation uncertainty and critical judgments in applying accounting policies that have significant effect on the amounts recognised in the financial statements other than those disclosed in the following notes: x Note 5 – measurement of the recoverable amounts of cash-generating units x Note 8 – deferred tax assets/(liabilities) x Note 23 – measurement of expected credit loss (“ECL”) x Note 29 – business combinations 2. Significant accounting policies The accounting policies set out below have been applied consistently to the periods presented in these financial statements, and have been applied consistently by the Group entities, unless otherwise stated. Arising from the adoption of MFRS 15, Revenue from Contracts with Customers and MFRS 9, Financial Instruments, there are changes to the accounting policies of: i) financial instruments; ii) revenue recognition; and iii) impairment losses of financial instruments as compared to those adopted in previous financial statements. The impact arising from the changes are disclosed in Note 30.