Asia Media Annual Report 2017

ASIA MEDIA GROUP BERHAD Annual Report 2017 72 2. Basis of Preparation (cont’d) (a) Statement of compliance (cont’d) Standards issued but not yet effective (cont’d) (i) MFRS 9 Financial Instruments (IFRS 9 issued by IASB in July 2014) (cont’d) • There will be no impact on the Group’s and Company’s accounting for financial liabilities, as the new requirements only affect the accounting for financial liabilities that are designated at fair value through profit or loss. The Group and Company does not have any such financial liabilities. The recognition rules have been transferred from MFRS 139 and have not been changed. • The new standard also introduces expanded disclosure requirements and changes in presentation. These are expected to change the nature of the Group’s and Company’s disclosures about its financial instruments particularly in the year of adoption of the new standard. Comparatives for financial year ended 31 December 2017 will not be restated. (ii) MFRS 15 Revenue from Contracts with Customers MFRS 15 replaces MFRS 118 Revenue , MFRS 111 Construction Contracts and related IC Interpretations. The Standard deals with revenue recognition and establishes principles for reporting useful information to users of financial statements about the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. Revenue is recognised when a customer obtains control of a good or service and thus has the ability to direct the use and obtain the benefits from the goods or service. The core principle in MFRS 15 is that an entity recognises revenue to depict the transfer of promised goods or services to the customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. A new five-step process is applied before the revenue can be recognised: • Identify contracts with customers; • Identify the separate performance obligations; • Determine the transaction price of the contract; • Allocate the transaction price to each of the separate performance obligations; and • Recognise the revenue as each performance obligation is satisfied. NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2017 (cont’d)