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Asia Media Group Berhad
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Annual Report 2015
Notes to the Financial Statements
(continued)
pg.
69
2.
Basis of preparation (cont’d)
(b) Standards, amendments to published standards and interpretations issued but not
yet effective (cont’d)
MFRS 9 Financial Instruments
MFRS 9 addresses the classification, recognition, derecognition, measurement and
impairment of financial assets and financial liabilities, as well as general hedge accounting. It
replaces MFRS 139. MFRS 9 requires financial assets to be classified into two measurement
categories, i.e. at fair value and at amortised cost. The determination is made at initial
recognition. The classification depends on the entity’s business model for managing its
financial instruments and the contractual cash flow characteristics of the instrument. For
financial liabilities, the standard retains most of the MFRS 139 requirements. The main
change is that, in cases where the fair value option is taken for financial liabilities, the part
of a fair value change due to changes in an entity’s own credit risk is recorded in other
comprehensive income, unless this creates an accounting mismatch. MFRS 9 contains a
new impairment model based on expected losses (as oppose to ‘incurred loss’ model under
MFRS 139), i.e. a loss event needs nit occur before an impairment loss is recognised,
which will result in earlier recognition of losses.
The Group is currently assessing the impact to the financial statements upon adopting
MFRS 9, and intends to adopt MFRS 9 on the mandatory effective date.
MFRS 15 Revenue from Contracts with Customers
MFRS 15 introduces a new model for revenue recognition arising from contracts with
customers. MFRS 15 will replace supersede MFRS 111 Construction contracts, MFRS 118
Revenue, IC 13 Customer Loyalty Programmes, IC 15 Agreements for the Construction
of Real Estate, IC 18 Transfers of Assets from Customers and IC 31 Revenue - Barter
Transactions Involving Advertising Services. The application of MFRS 15 may result in
difference in timing of revenue recognition as compared with current accounting policies.
The Company is currently assessing the impact to the financial statements upon adopting
MFRS 15, and will adopt MFRS 15 on the mandatory effective date.