notes to the financial statements
for the financial year ended 31 December 2014 (Continued)
2 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
2.2 Changes in accounting policies and disclosures
(a)
Standards, amendments to published standards and interpretations that are effective
The following standards have been adopted by the Group and the Company for the first time for the financial year beginning on or after 1 January 2014:
• Amendments to MFRS 132 “Financial Instruments: Presentation” does not change the current offsetting model in MFRS 132. It clarifies the
meaning of ‘currently has a legally enforceable right of set-off’ that the right of set-off must be available today (not contingent on a future
event) and legally enforceable for all counterparties in the normal course of business. It clarifies that some gross settlement mechanisms with
features that are effectively equivalent to net settlement will satisfy the MFRS 132 offsetting criteria.
• The amendments to MFRS 136 “Impairment of assets” removed certain disclosures of the recoverable amount of cash-generating units which
had been included in MFRS 136 by the issuance of MFRS 13.
The adoption of the revised standards and amendments that are applicable from the financial year beginning on 1 January 2014 did not have any impact
on the financial position and results of the Group and the Company.
(b)
Standards, amendments to published standards and interpretations to existing standards that are applicable to the Group and Company but not yet
effective
• Annual Improvements to MFRSs 2010-2012 Cycle
i)
Amendments to MFRS 3 “Business Combinations” clarifies that an obligation to pay contingent consideration which meets the
definition of a financial instrument is classified as a financial liability or equity, on the basis of the definition in MFRS 132 “Financial
Instruments: Presentation”. It also clarifies that all non-equity contingent consideration is measured at fair value at each reporting
date, with changes in value recognised in profit or loss.
ii)
Amendments to MFRS 8 “Operating Segments” which is amended to require disclosure of the judgements made by management in
aggregating operating segments. It is also amended to require a reconciliation of segment assets to the entity’s assets when segment
assets are reported.
iii)
Amendments to MFRS 13 “Fair Value Measurement” which amended the basis of conclusions to clarify that it did not intend to remove
the ability to measure short term receivables and payables at invoice amounts where the effect of discounting is material.
iv)
Amendments toMFRS 124 “Related Party Disclosures” is amended to include, as a related party, an entity that provides key management
personnel services to the reporting entity or to the parent of the reporting entity (the “management entity”). Disclosure of the amounts
charged to the reporting entity is required.
v)
Amendments to MFRS 116 “Property, Plant and Equipment” and MFRS 138 “Intangible Assets” are amended to clarify how the gross
carrying amount and the accumulated depreciation are treated where an entity uses revaluation model.
The Group and the Company will apply these amendments from financial year beginning on 1 January 2015. It is not expected to result in any
material impact on the financial position and results of the Group and the Company upon adoption of these amendments.
• Annual Improvements to MFRSs 2011-2013 Cycle
i)
Amendments to MFRS 1 “First-time Adoption of Financial Reporting Standards” basis of conclusions is amended to clarify that where
a new standard is not mandatory but it is available for early adoption, a first-time adopter can use either the old or the new version,
provided the same standard is applied in all periods presented.
ii)
Amendments to MFRS 3 “Business Combinations” is amended to clarify that MFRS 3 does not apply to the accounting for the formation
of any joint venture under MFRS 11.
66
Wah Seong Corporation Berhad • Annual Report 2014
