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Annual Report 2016
ASIA MEDIA GROUP Berhad
69
Notes to the Financial Statements
(continued)
2.
Basis of preparation (cont’d)
2.1 Standards, amendments to published standards and interpretations issued but not
yet effective (cont’d)
(ii) Effective for annual periods beginning on or after 1 January 2018
•
Amendments to MFRS 1, ‘Annual Improvements to MFRSs 2014-2016 Cycle’
•
Amendments to MFRS 2, ‘Classification and Measurement of Share-based
Payment Transactions’
•
MFRS 9, ‘Financial Instruments (IFRS 9 as issued by International Accounting
Standards Board (“IASB”) in July 2014)’
•
MFRS 15, ‘Clarifications to MFRS15 Revenue from Contracts with Customers’
•
Amendments to MFRS 128, ‘Annual Improvements to MFRSs 2014-2016 Cycle’
•
Amendments to MFRS 140, ‘Transfers of Investment Property’
•
IC Interpretation 22, ‘Foreign Currency Transactions andAdvance Consideration’
(iii) Effective for annual periods beginning on or after 1 January 2019
•
MFRS 16, ‘Leases’
(iv) Effective date to be announced
•
Amendments to MFRS 10 and MFRS 128 ‘Sale or Contribution of Assets
between an Investor and its Associate or Joint Venture’
The initial application of the abovementioned accounting standards and amendments
to existing standards, where applicable, are not expected to have any material impact
to the financial statements of the Company.
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.