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Notes To The
Financial Statements
As at 31 March 2019
2.
Significant accounting policies (cont’d.)
2.2 Standards issued but not yet effective (cont’d.)
MFRS 16 Leases (cont’d.)
Classification of cash flows will also be affected as operating lease payments under MFRS 117 are presented
as operating cash flows, whereas under MFRS 16, the lease payments will be split into a principal (which
will be presented as financing cash flows) and an interest portion (which will be presented as operating
cash flows).
Lessor accounting under MFRS 16 is substantially the same as the accounting under MFRS 117. Lessors
will continue to classify all leases using the same classification principle as in MFRS 117 and distinguish
between two types of leases: operating and finance leases.
MFRS 16 is effective for annual periods beginning on or after 1 January 2019. A lessee can choose to apply
the standard using either a full retrospective or a modified retrospective approach. The Group is currently
assessing the potential effect of MFRS 16 on its financial statements.
2.3 Summary of significant accounting policies
(a) Basis of consolidation
The consolidated financial statements comprise the financial statements of the Company and its
subsidiary companies as at the reporting date. The financial statements of the subsidiary companies
used in the preparation of the consolidated financial statements are prepared for the same reporting
date as the Company. Consistent accounting policies are applied for like transactions and events in
similar circumstances.
The Company controls an investee if and only if the Company has the following:
(i) Power over the investee (i.e. existing rights that give it the current ability to direct the relevant
activities of the investee);
(ii) Exposure, or rights, to variable returns from its investment with the investee; and
(iii) The ability to use its power over the investee to affects its returns.
When the Company has less than a majority of the voting rights of an investee, the Company
considers the following in assessing whether or not the Company’s voting rights in an investee are
sufficient to give it power over the investee:
(i) The size of the Company’s holding of voting rights relative to the size and dispersion of holdings
of the other vote holders;
(ii) Potential voting rights held by the Company, other vote holders or other parties;
financial
statements
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