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FIMA CORPORATION BERHAD
(21185-P) |
Annual Report
2016
NOTES TO THE FINANCIAL
STATEMENTS 31 MARCH 2016
(contd.)
2.
SIGNIFICANT ACCOUNTING POLICIES (CONTD.)
2.2 New FRSs, Amendments to FRS and IC Interpretations (Contd.)
(b) Standards Issued But Not Yet Effective (Contd.)
(i) FRS 15 Revenue from Contracts with Customers (Contd.)
Under FRS 15, an entity recognises revenue when (or as) a performance obligation is
satisfied, i.e when “control” of the goods or services underlying the particular performance
obligation is transferred to the customer.
Either a full or modified retrospective application is required for annual periods beginning
on or after 1 January 2018 with early adoption permitted. The Directors anticipate that the
application of FRS 15 will have an impact on the amounts reported and disclosures made in
the Group’s and the Company’s financial statements. The Group is currently assessing the
impact of FRS 15 and plans to adopt the new standard on the required effective date.
(ii) FRS 9 Financial Instruments
In November 2014, MASB issued the final version of FRS 9 Financial Instruments which
reflects all phases of the financial instruments project and replaces FRS 139 Financial
Instruments: Recognition and Measurement and all previous versions of FRS 9. The
standard introduces new requirements for classification and measurement, impairment and
hedge accounting. FRS 9 is effective for annual periods beginning on or after 1 January
2018, with early application permitted. Retrospective application is required, but comparative
information is not compulsory. The adoption of FRS 9 will have an effect on the classification
and measurement of the Group’s financial assets, but no impact on the classification and
measurement of the Group’s financial liabilities.
(c) Malaysian Financial Reporting Standards (“MFRS”) Framework
On 19 November 2011, the Malaysian Accounting Standards Board (“MASB”) issued a new
MASB approved accounting framework, the Malaysian Financial Reporting Standards (“MFRS”)
Framework.
The MFRS Framework is to be applied by all Entities Other than Private Entities for annual periods
beginning on or after 1 January 2012, with the exception of entities that are within the scope of
MFRS 141 Agriculture (MFRS 141) and IC Interpretation 15 Agreements for the Construction
of Real Estate (IC 15), including its parent, significant investor and venturer (herein called
“Transitioning Entities”).
Transitioning Entities are allowed to defer adoption of the new MFRS Framework. The adoption
of the MFRS Framework by Transitioning Entities will be mandatory for annual periods beginning
on or after 1 January 2018.
The Group falls within the scope definition of Transitioning Entities and accordingly, will be
required to prepare financial statements using the MFRS Framework in its first MFRS financial
statements for the year ending 31 March 2019. In presenting its first MFRS financial statements,
the Group will be required to adjust the comparative financial statements prepared under FRS to
amounts reflecting the application of MFRS Framework. The majority of the adjustments required
on transition will be made, retrospectively, against the opening retained earnings.