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ASIA MEDIA GROUP Berhad
Annual Report 2016
70
Notes to the Financial Statements
(continued)
2.
Basis of preparation (cont’d)
2.2 Companies Act 2016 effective beginning 31 January 2017
The Minister of Domestic Trade, Co-operatives and Consumerism has appointed 31
January 2017 as the date on which Companies Act 2016 (“the Act”) comes into operation,
except section 241 and Division 8 of Part III of the Act. The Act will be implemented on a
staggered basis. With the enforcement of the first phase of the Act on 31 January 2017,
the Companies Act 1965 is repealed. The Company shall prepare its financial statements
for the year ending 31 December 2017 in accordance with the requirements of the Act
The Act introduces the following changes to the current basis of preparation:
•
All shares issued before or upon the commencement of the Act shall have no par or
nominal value. Where a share is issued before the commencement of the Act, the
amount paid on the share shall be the sum of all amounts paid to the company at
any time for the share, but not including any premium.
•
Upon commencement of theAct, any amount standing to the credit of the Company’s
share premium account shall become part of the Company’s share capital. However,
the Company may, within 24 months upon the commencement of the Act, use the
amount standing to the credit of its share premium account for specific purposes set
out in the transitional provisions of the Act. Thereafter, any unutilised credit balance
in the share premium account shall be transferred and credited to share capital of
the Company.
The financial statements disclosure requirements under the Act (other than the disclosure
requirements of MFRS) are different from those requirements set out in Companies Act
1965. Consequently, the items to be disclosed in the financial statements of the Company
for the year ending 31 December 2017 may be different from those disclosed in the financial
statements for the current financial year.
The Company is currently assessing the impact of the Act on financial statements for the
year ending 31 December 2017.