Yinson Annual Report 2020

234 Notes to the financial statements (cont’d) For the financial year ended 31 January 2020 Yinson Holdings Berhad SECTION 7 ACCOUNTABILITY 2. Summary of significant accounting policies (continued) 2.32 Deferred income Deferred income relating to charter income received in advance are deferred and amortised on a straight line basis over the contract period. 3. Standards, amendments to published standards and interpretations, which are applicable and adopted by the Group and the Company The Group and the Company have applied the following standards and amendments for the first time for the financial year beginning on 1 February 2019: (i) Amendments to MFRS 9 “Prepayment Features with Negative Compensation” (ii) Amendments to MFRS 128 “Long-term Interests in Associates and Joint Ventures” (iii) MFRS 16 “Leases” (iv) IC Interpretation 23 “Uncertainty over Income Tax Treatments” (v) Annual Improvements to MFRSs 2015 - 2017 Cycle - Amendments to MFRS 3 “Business Combinations” - Amendments to MFRS 11 “Joint Arrangements” - Amendments to MFRS 112 “Income Taxes” - Amendments to MFRS 123 “Borrowing Costs” The adoption of the above amendments to published standards does not have any material impact to the Group, other than MFRS 16 as disclosed below. Adoption of MFRS 16 On 1 February 2019, the Group and the Company changed its accounting policies on leases upon adoption of MFRS 16. The Group and the Company has elected to use the simplified retrospective transition method and to apply a number of practical expedients as provided in MFRS 16. Under the simplified retrospective transition method, the 2019 comparative information was not restated. The right- of-use assets were measured on transition at an amount equal to the lease liability. The comparative information continued to be reported under the previous accounting policies governed under MFRS 117 “Leases” and IC Int. 4 “Determining whether an Arrangement Contains a Lease”. As a lessor, the Group is not required to make any adjustment on transition. In addition, the Group and the Company have elected not to reassess whether a contract is, or contains a lease at the date of initial application. Instead, for contracts entered into before the transition date the Group and the Company relied on its assessment made applying MFRS 117 and IC Int. 4.