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 (continued)
(b)
Standards, amendments to published standards and interpretations to existing standards that are applicable to the Group and Company but not yet
effective (continued)
iii)
Amendments to MFRS 13 “Fair Value Measurement” is amended to clarify that the portfolio exception in MFRS 13 applies to all contracts
(including non-financial contracts) within the scope of MFRS 139 or MFRS 9.
iv)
Amendments to MFRS 140 “Investment Property” is amended to clarify that MFRS 140 and MFRS 3 are not mutually exclusive. MFRS 140
assists users to distinguish between investment property and owner-occupied property. Preparers also need to consider the guidance in MFRS
3 to determine whether the acquisition of an investment property is a business combination.
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.
• Amendments to MFRS 11 “Joint Arrangements” provides new guidance on how to account for the acquisition of an interest in a joint venture
operation that constitutes a business. The amendments require an investor to apply the principles of business combination accounting when
it acquires an interest in a joint operation that constitutes “business”. The amendments are applicable to both the acquisition of the initial
interest in a joint operation and the acquisition of additional interest in the same joint operation. However, a previously held interest is not re-
measured when the acquisition of an additional interest in the same joint operation results in retaining joint control. The Group and the Company
will apply this amendment from financial year beginning on 1 January 2016. 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 this amendment.
• Amendments to MFRS 116 “Property, Plant and Equipment” and MFRS 138 “Intangible Assets” clarifies that the use of revenue-based methods
to calculate the depreciation of an asset is not appropriate because revenue is generated by an activity that includes the use of an asset
generally reflects factors other than the consumption of the economic benefits embodied in the asset.
This has also clarified that revenue is generally presumed to be an inappropriate basis for measuring the consumption of the economic benefits
embodied in an intangible asset. The presumption may only be rebutted in certain limited circumstances. These are where an intangible asset
is expressed as a measure of revenue; or where it can be demonstrated that revenue and the consumption of the economic benefits of the
intangible assets are highly correlated.
The Group and the Company will apply these amendments from financial year beginning on 1 January 2016. 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.
• Amendments to MFRS 116 “Property, Plant and Equipment” and MFRS 141 “Agriculture” change the reporting for bearer plants, such as grape
vines, rubber trees and oil palms. Bearer plants should be accounted for in the same way as property, plant and equipment because their
operation is similar to that of manufacturing. The amendments include them in the scope of MFRS 116 rather than MFRS 141.
The produce on bearer plants will remain the scope of MFRS 141.
The Group and the Company will apply these amendments from financial year beginning on 1 January 2016. 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.
• Amendments to MFRS 127 “Separate Financial Statements” allow entities to use the equity method to account for investments in subsidiaries,
joint ventures and associates in their separate financial statements. The Group and the Company will apply this amendment from financial
year beginning on 1 January 2016. 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 this amendment.
67
Wah Seong Corporation Berhad • Annual Report 2014
