Wah Seong Corporation Berhad Annual Report 2018

2 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 2.2 Changes in accounting policies and disclosures (a) Standards, amendments to published standards and interpretations that are effective The Group and the Company have applied the following amendments for the first time for the financial year beginning on 1 January 2018: • MFRS 9 ‘Financial Instruments’ The Group has applied MFRS 9 retrospectively with the date of initial application of 1 January 2018. In accordance with the transitional provisions provided in MFRS 9, comparative information for the financial year ended 31 December 2017 was not restated and continued to be reported under the previous accounting policies governed under MFRS 139. The cumulative effects of initially applying MFRS 9 were recognised as an adjustment to the opening balance of retained earnings as at 1 January 2018. • MFRS 15 ‘Revenue from Contracts with Customers’ The Group has applied MFRS 15 with the date of initial application of 1 January 2018 by using the modified retrospective transition method. Under the modified retrospective transition method, the Group applies the new policy retrospectively only to contracts that are not completed contracts at the date of initial application. Accordingly, the comparative information for the financial year ended 31 December 2017 was not restated and continued to be reported under the previous accounting policies governed under MFRS 118 and MFRS 111. There is no significant impact to the opening balance of retained earnings as at 1 January 2018. • Amendments to MFRS 140 ‘Investment Property – Transfer of Investment Property’ • IC Interpretation 22 ‘Foreign Currency Transactions and Advance Consideration’ The adoption of the revised standards and amendments that are applicable from the financial year beginning on 1 January 2018 did not have any significant impact on the financial position and results of the Group and the Company, except as disclosed below. Effects on adoption of MFRS 9 on financial statements The measurement category and the carrying amount of financial assets and financial liabilities in accordance with MFRS 139 and MFRS 9 at 1 January 2018 are compared as follows: Statements of financial position Measurement category Carrying amount Original New Original New (MFRS 139) (MFRS 9) (MFRS 139) Reclass (MFRS 9) Group RM’000 RM’000 RM’000 RM’000 RM’000 Non-current assets Available-for-sale financial assets Available for sale - 10 (10) - Investment in equity instruments - FVTPL - 10 10 An investment in equity instruments are reclassified from available-for-sale to financial assets at fair value through profit or loss as they do not meet the MFRS 9 criteria for classification at amortised cost as their cash flows do not represent solely payments of principal and interest. Related fair value gains of RM6,000 previously recognised in available-for-sale reserve are transferred to retained earnings on 1 January 2018. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 ANNUAL REPORT 2018 89