NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2022 2 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 2.2 Changes in accounting policies and disclosures (a) Standards, amendments to published standards and interpretations that are effective The Group has applied the following amendments for the first time for the financial year beginning on 1 January 2022: • Amendment to MFRS 16 ‘Covid-19-Related Rent Concessions beyond 30 June 2021’ • Amendments to MFRS 116 ‘Proceeds before Intended Use’ • Amendments to MFRS 137 ‘Onerous Contracts – Cost of Fulfilling a Contract’ • Annual Improvements to MFRS 9 ‘Fees in the ‘10 per cent’ test for Derecognition of Financial Liabilities’ • Amendments to MFRS 3 ‘Reference to the Conceptual Framework’ The adoption of the revised amendments that are applicable from the financial year beginning on 1 January 2022 did not have any significant impact on the financial position and results of the Group and the Company. (b) Standards, amendments to published standards and interpretations to existing standards that are applicable to the Group and the Company but not yet effective • Amendments to MFRS 112 ‘Deferred Tax related to Assets and Liabilities arising from a Single Transaction’ (effective 1 January 2023) clarify that the initial exemption rule does not apply to transactions where both an asset and a liability are recognised at the same time such as leases and decommissioning obligations. Accordingly, entities are required to recognise both deferred tax assets and liabilities for all deductible and taxable temporary differences arising from such transactions. • Amendments to MFRS 101 ‘Classification of liabilities as current or non-current’ clarify that liabilities are classified as either current or non-current, depending on the rights that exist at the end of the reporting period. Classification is unaffected by the entity’s expectations or events after the reporting date (e.g. the receipt of a waiver or a breach of covenant). The amendments are effective for the annual reporting periods beginning on or after 1 January 2024. The amendments shall be applied retrospectively. The Group and the Company are in the process of assessing the full impact of the above amendments to published standards on the financial statements of the Group and the Company in the financial year of initial application. 2.3 Subsidiaries Subsidiaries are those corporations, partnerships or other entities (including special purpose entities) over which the Group has power to exercise control over variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the relevant activities of the entity. Potential voting rights are considered when assessing control only when such rights are substantive. In the Company’s separate financial statements, investments in subsidiaries are stated at cost less accumulated impairment losses, if any. Where an indication of impairment exists, the carrying amount of the investment is assessed and written down immediately to its recoverable amount. See accounting policy 2.13 on impairment of non-financial assets. Wah Seong Corporation Berhad Annual Report 2022 110
RkJQdWJsaXNoZXIy NDgzMzc=