Yinson Annual Report 2020

237 Annual Report 2020 4. Standards, amendments to published standards and interpretations to existing standards that are applicable to the Group and the Company but not yet effective (a) Financial year beginning on/after 1 February 2020 (i) The Conceptual Framework for Financial Reporting (Revised 2018) This revised Conceptual Framework comprises a comprehensive set of concepts for financial reporting. The changes to the chapters on the objective of financial reporting and qualitative characteristics of useful financial information are limited, but with improved wording to give more prominence to the importance of providing information needed to assess management’s stewardship of the entity’s economic resources. Other improvements of the revised Conceptual Framework include a new chapter on measurement, guidance on reporting financial performance, improved definitions and guidance, in particular the definition of a liability and clarifications in important areas, such as the role of prudence and measurement uncertainty in financial reporting. (ii) Amendments to MFRS 101 “Presentation of Financial Statements” and Amendments to MFRS 108 “Accounting Policies, Changes in Accounting Estimates and Errors” The amendments refine the definition by including ‘obscuring information’ in the definition of material to respond to concerns that the effect of including immaterial information should not reduce the understandability of a company’s financial statements. The prior definition focuses only on information that cannot be omitted (material information) and does not also consider the effect of including immaterial information. Other refinements to the definition include incorporating some existing wording in MFRS 101 and the Conceptual Framework for Financial Reporting. Consequently, the amendments align the definition of material across MFRS Standards and other publications. The amendments shall be applied prospectively. (iii) Amendments to MFRS 3 “Business Combinations” The amendments clarify the definition of a business with the objective of assisting entities to determine whether a transaction should be accounted for as a business combination or as an asset acquisition. The distinction is important because an acquirer does not recognise goodwill in an asset acquisition. The amendments, amongst others, clarify that to be considered a business, an acquired set of activities and assets must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create outputs. The amendments also add an optional concentration test that permits a simplified assessment of whether an acquired set of activities and assets is not a business. The amendments shall be applied prospectively.