Yinson Annual Report 2019

145 Yinson Group Overview Strategy and Sustainability Governance Accountability Annual General Meeting 3. STANDARDS, AMENDMENTS TO PUBLISHED STANDARDS AND INTERPRETATIONS, WHICH ARE APPLICABLE AND ADOPTED BY THE GROUP AND THE COMPANY (CONTINUED) Adoption of MFRS 9 (i) Classification and measurement of financial assets There is no impact on the classification and measurement of financial assets of the Group and the Company: • debt instruments measured at amortised cost and FVTPL meet the conditions to be classified at amortised cost and FVTPL under MFRS 9 respectively; and • equity investments measured at FVTPL continue to be measured on the same basis under MFRS 9. (ii) Impairment Until 31 January 2018, the Group and the Company assessed the impairment of loan and receivables and AFS financial assets based on the incurred impairment loss model. Note 2.17(ii) set out the details of accounting policies for impairment of financial assets under MFRS 139. From 1 February 2018, the Group and the Company apply expected ECL model to determine impairment on investment in debt instruments that are measured at amortised cost and at FVOCI and financial guarantee contracts. The new accounting policies for impairment under MFRS 9 are set out in Note 2.17(ii). (a) Trade receivables that do not contain significant financing components and other receivables For all trade receivables that do not contain significant financing components, the Group and the Company apply the MFRS 9 simplified approach which is to measure the loss allowance at an amount equal to lifetime ECL at initial recognition and throughout its life. Other receivables that are repayable on demand and interest-free are classified as amortised cost in the Company’s financial statements because theCompany’s businessmodel is tohold and collect the contractual cash flows and those cash flows represent SPPI. The Company applied the general 3-stage approach when determining ECL for these other receivables. This resulted in the recognition of additional loss allowances on 1 February 2018. The following table reconciles the closing loss allowance measured in accordance with MFRS 139 incurred loss model as at 31 January 2018 to the opening loss allowance measured in accordance with the MFRS 9 ECL model at 1 February 2018: Reported as at 31.1.2018 RM’000 Effect of adoption on MFRS 9 RM’000 Restated as at 1.2.2018 RM’000 Consolidated Statement of Financial Position Investment in joint ventures Trade and other receivables Retained earnings 594,943 369,040 826,703 (1,436) (17,090) (18,526) 593,507 351,950 808,177 There is no additional loss allowance recognised by the Company on 1 February 2018.