NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2023 CONT’D 35. ADOPTION OF NEW MFRSs AND AMENDMENTS TO MFRSs (Cont’d) 35.1 New MFRSs adopted during the financial year (Cont’d) (a) MFRS 17 Insurance Contracts and Amendments to MFRS 17 Initial Application of MFRS 17 and MFRS 9 - Comparative Information (Cont’d) Amendments to MFRS 17 adds a new transition option to MFRS 17 (the ‘classification overlay’) to alleviate operational complexities and one-time accounting mismatches in comparative information between insurance contract liabilities and related financial assets on the initial application of MFRS 17. It allows presentation of comparative information about financial assets to be presented in a manner that is more consistent with MFRS 9 Financial Instruments. The Group and the Company do not have any contracts that meet the definition of an insurance contract under MFRS 17, except for guaranteed bank facilities provided to associates and corporate guarantee provided to subsidiaries, which are financial guarantee contracts that the Group and the Company had previously explicitly asserted under MFRS 4. The Group and the Company made an irrevocable choice to apply MFRS 9 Financial Instruments on a contract-by-contract basis to these financial guarantee contracts as at the date of transition to MFRS 17. In relation to this, the Company recognised financial guarantee contracts, recognising the difference in retained earnings. The impact on transition is summarised below: As at 31 December 2022 Impact As at 1 January 2023 Company Note RM RM RM Borrowings 25 5,842,938 448,012 6,290,950 Deferred tax assets - * - Accumulated losses (89,421,480) (448,012) (89,869,492) * The deferred tax assets are not recognised as it is immaterial to the Company. 35.2 New MFRSs that have been issued, but only effective for annual periods beginning on or after 1 January 2024 The following are Standards of the MFRS Framework that have been issued by the MASB but have not been early adopted by the Group and the Company: Title Effective Date Amendments to MFRS 107 and MFRS 7 Supplier Finance Arrangements 1 January 2024 Amendments to MFRS 16 Lease Liability in Sale and Leaseback 1 January 2024 Amendments to MFRS 101 Classification of Liabilities as Current or Non-current 1 January 2024 Amendments to MFRS 101 Non-current Liabilities with Covenants 1 January 2024 Amendments to MFRS 121 Lack of Exchangeability 1 January 2025 Amendments to MFRS 10 and MFRS 128 Sale or Contribution of Assets between an Investor and its Associate or Joint Venture Deferred The Group and the Company are in the process of assessing the impact of implementing these Standards and Amendments, since the effects would only be observable for the future financial years. 161 ANNUAL REPORT 2023
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