2020 UEM Edgenta Annual Report

2. SIGNIFICANT ACCOUNTING POLICIES (CONTD.) 2.3 Standards issued but not yet effective T he standards and interpretation that are issued but not yet effective up to the date of issuance of the Group’s and the Company’s financial statements are disclosed below. The Group and the Company intend to adopt these standards and interpretation, if applicable, when they become effective. Effective for annual periods beginning on or after Amendment to MFRS 16 Leases: COVID-19 - related rent concessions 1 June 2020 MFRS 17: Insurance Contracts 1 January 2021 Amendments to MFRS 9, MFRS 139, MFRS 7, MFRS 4 and MFRS 16: Interest rate benchmark reform - phase 2 1 January 2021 Annual improvements to MFRS Standards 2018 - 2020 1 January 2022 Amendments to MFRS 3 Business Combinations: Reference to conceptual framework 1 January 2022 Amendment to MFRS 116 Property, Plant and Equipment: Property, plant and equipment - proceeds before intended use 1 January 2022 Amendments to MFRS 137 Provisions, Contingent Liabilities and Contingent Assets: Onerous contracts - cost of fulfilling a contract 1 January 2022 Amendments to MFRS 17 Insurance Contracts 1 January 2023 Amendments to MFRS 101: Classification of liabilities as current or non-current 1 January 2023 Amendments to MFRS 10 and MFRS 128: Sale or Contribution of Assets between an Investor and its Associate or Joint Venture Deferred These standards above not expected to have a significant impact on the financial statements in the period of initial application apart from the changes to disclosures and presentation. 2.4 Summary of significant accounting policies a . Basis of consolidation and subsidiaries i. Basis of consolidation T he consolidated financial statements comprise the financial statements of the Company and its subsidiaries as at the reporting date. The financial statements of the subsidiaries used in the preparation of the consolidated financial statements are prepared for the same reporting date as the Company. Consistent accounting policies are applied for like transactions and events in similar circumstances. The Company controls an investee if and only if the Company has all the following: i. Power over the investee (i.e existing rights that give it the current ability to direct the relevant activities of the investee); ii. Exposure, or rights, to variable returns from its involvement with the investee; and iii. The ability to use its power over the investee to affect its returns. UEM EDGENTA BERHAD 198 Financial Statements NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2020