Fraser & Neave Holdings Bhd Annual Report 2019

A N N U A L R E P O R T 2 0 1 9 06 Financial Statements 209 NOTES TO THE FINANCIAL STATEMENTS 34. SIGNIFICANT CHANGES IN ACCOUNTING POLICIES (CONTINUED) (B) ACCOUNTING FOR FINANCIAL INSTRUMENTS (i) Transition In the adoption of MFRS 9, the following transitional exemptions as permitted by the standard have been adopted: • The Group has not restated comparative information for prior periods with respect to classification and measurement (including impairment) requirements. Differences in the carrying amounts of financial assets and financial liabilities resulting from the adoption of MFRS 9 are recognised in retained earnings and reserves as at 1 October 2018. Accordingly, the information presented for the previous financial year does not generally reflect the requirements of MFRS 9, but rather those of MFRS 139, Financial Instruments: Recognition and Measurement . • Assessments on classification of financial assets and financial liabilities have been made based on the determination of the business model within which a financial asset or a financial liability is held. Trade and other receivables, cash and cash equivalents, trade and other payables and loans and borrowings that were classified as either loans and receivables or other financial liabilities measured at amortised cost under MFRS 139 are now reclassified at amortised cost. • Loss allowance for receivables (other than trade receivables) is recognised at an amount equal to lifetime expected credit losses until the receivable is derecognised. (ii) Classification of financial assets and financial liabilities on the date of initial application of MFRS 9 The following table shows the measurement categories under MFRS 139 and the new measurement categories under MFRS 9 for each class of the Group’s and the Company’s financial assets and financial liabilities as at 1 October 2018: 1 October 2018 Category under MFRS 139 30 September 2018 RM’000 Remeasurement RM’000 Reclassification to new MFRS 9 category Amortised cost RM’000 Financial assets Group Loans and receivables Trade and other receivables * 555,036 (2,003) 553,033 Cash and cash equivalents 537,092 – 537,092 1,092,128 (2,003) 1,090,125 Company Loans and receivables Other receivables 351,792 – 351,792 Cash and cash equivalents 124,509 – 124,509 476,301 – 476,301