Yinson Annual Report 2021

227 ANNUAL REPORT 2021 NOTES TO THE FINANCIAL STATEMENTS (CONT’D) For the financial year ended 31 January 2021 4. Standards, amendments to published standards and interpretations to existing standards that are applicable to the Group and the Company but not yet effective (continued) (b) Financial year beginning on/after 1 February 2022 (i) Annual Improvements to MFRS 9 "Fees in the 10% Test for Derecognition of Financial Liabilities" Annual Improvements to MFRS 9 "Fees in the 10% Test for Derecognition of Financial Liabilities" clarifies that only fees paid or received between the borrower and the lender, including the fees paid or received on each other’s behalf, are included in the cash flow of the new loan when performing the 10% test. An entity shall apply the amendment to financial liabilities that are modified or exchanged on or after the beginning of the annual reporting period in which the entity first applies the amendment. (ii) Amendments to MFRS 3 "Reference to Conceptual Framework" Amendments to MFRS 3 "Reference to Conceptual Framework" replace the reference to Framework for Preparation and Presentation of Financial Statements with 2018 Conceptual Framework. The amendments did not change the current accounting for business combinations on acquisition date. The amendments provide an exception for the recognition of liabilities and contingent liabilities within the scope of MFRS137 "Provisions, contingent liabilities and contingent assets" and IC Interpretation 21 "Levies". It also clarifies that contingent assets should not be recognised at the acquisition date. The amendments shall be applied prospectively. (iii) Amendments to MFRS 116 "Proceeds Before Intended Use" Amendments to MFRS 116 "Proceeds before intended use" prohibit an entity from deducting from the cost of an item of property, plant and equipment any proceeds received from selling items produced while the entity is preparing the asset for its intended use. The sales proceeds should instead be recognised in profit or loss. The amendments also clarify that testing whether an asset is functioning properly refers to assessing the technical and physical performance of the asset. The amendments shall be applied retrospectively. (iv) Amendments to MFRS 137 "Onerous Contracts—Cost of Fulfilling A Contract" Amendments to MFRS 137 "Onerous Contracts—Cost of Fulfilling A Contract" clarify that direct costs of fulfilling a contract include both the incremental cost of fulfilling the contract as well as an allocation of other costs directly related to fulfilling contracts. The amendments also clarify that before recognising a separate provision for an onerous contract, impairment loss that has occurred on assets used in fulfilling the contract should be recognised. The amendments shall be applied retrospectively. (c) Financial year beginning on/after 1 February 2023 (i) Amendments to MFRS 101 "Classification of Liabilities as Current or Non-Current" The MFRS 101 classification principle requires an assessment of whether an entity has the substantive right to defer settlement of a liability at the end of the reporting period. The amendments clarify that when the right to defer settlement is subject to complying with specified conditions, the right only exists at the end of the reporting period if the entity complies with those conditions at that date. The entity must comply with the conditions at the end of the reporting period even if the lender does not test compliance until a later date.