Wah Seong Corporation Berhad Annual Report 2018

2 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 2.2 Changes in accounting policies and disclosures (continued) (a) Standards, amendments to published standards and interpretations that are effective (continued) Effects on adoption of MFRS 9 on financial statements (continued) Statements of changes in equity Impacts on the change in the accounting policies on the Group’s retained earnings as at 1 January 2018 is as follows: Available- Retained for-sale earnings reserve Group RM’000 RM’000 As previously reported at 31 December 2017 355,016 6 Impacts of adoption of MFRS 9: Reclassification of investment in equity instruments from available-for-sale to fair value through profit or loss 6 (6) Increase in loss allowance for trade receivables that do not contain significant financing components (2,325) - Adjustment to retained earnings upon adoption of MFRS 9 (2,319) (6) As restated at 1 January 2018 352,697 - Except as disclosed above, there is no other impact on the classification and measurement recognised in relation to the remaining financial assets and financial liabilities from the adoption of MFRS 9. See Note 45 on the measurement category for each class of financial assets and financial liabilities. Effects on adoption of MFRS 15 on financial statements Statements of financial position There is no impact of MFRS 15 on the Group’s and the Company’s statement of financial position as at 1 January 2018. Had the Group continue to apply the previous accounting policies in accordance with MFRS 111 and MFRS 118 on these transactions, the impact on each financial statement line items for the financial year ended 31 December 2018 would be as follows: Balances without Balances adoption of reported MFRS 15 as at 31 Effects of as at 31 December adoption of December 2018 MFRS 15 2018 Group RM’000 RM’000 RM’000 Current assets Contract assets 95,869 (95,869) - Amount due from customers on contracts - 71,251 71,251 Trade and other receivables 560,707 24,618 585,325 Current liabilities Contract liabilities 52,792 (52,792) - Amount due to customers on contracts - 29,552 29,552 Trade and other payables 726,350 23,240 749,590 Statements of changes in equity There is no significant impact to the Group’s retained earnings as at 1 January 2018. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 WAH SEONG CORPORATION BERHAD 90