Fraser & Neave Holdings Bhd Annual Report 2019

WWW . F N . C O M . M Y 210 F R A S E R & N E A V E H O L D I N G S B H D NOTES TO THE FINANCIAL STATEMENTS 34. SIGNIFICANT CHANGES IN ACCOUNTING POLICIES (CONTINUED) (B) ACCOUNTING FOR FINANCIAL INSTRUMENTS (CONTINUED) (ii) Classification of financial assets and financial liabilities on the date of initial application of MFRS 9 (continued) Category under MFRS 139 30 September 2018 RM’000 1 October 2018 Reclassification to new MFRS 9 category Amortised cost RM’000 Financial liabilities Group Other financial liabilities measured at amortised cost Trade and other payables 579,111 579,111 Loans and borrowings 335,524 335,524 914,635 914,635 Company Other financial liabilities measured at amortised cost Other payables 858 858 * Reclassification from loans and receivables to amortised cost Trade and other receivables that were classified as loans and receivables under MFRS 139 are now reclassified at amortised cost. An increase of RM2,003,000 in allowance for impairment was recognised in opening retained earnings of the Group at 1 October 2018 on transition to MFRS 9. (C) ACCOUNTING FOR REVENUE The following are the changes in revenue recognition from the adoption of MFRS 15: Type of revenue Previous year’s revenue recognition Current year’s revenue recognition Sale of goods Revenue is recognised when the significant risks and rewards of ownership have been transferred to the customer, recovery of the consideration is probable, the associated costs and possible return of goods can be estimated reliably, there is no continuing management involvement with the goods, and the amount of revenue can be measured reliably. The Group or the Company recognises revenue when it transfers control over a product or a service to customer. An asset is transferred when the customer obtains control of the asset. 35. SUBSEQUENT EVENT On 8 October 2019, the Company announced that its direct wholly-owned subsidiary, F&N AgriValley Sdn Bhd (formerly known as Rimba Perkasa Sdn Bhd) had on the same date entered into a conditional sale and purchase agreement (“SPA”) with MSM Perlis Sdn Bhd, a direct wholly-owned subsidiary of MSM Malaysia Holdings Berhad, in relation to the proposed acquisition of 9 parcels of leasehold land measuring in total approximately 4,453.92 hectares, which is located in Mukim Chuping, Daerah Perlis, Negeri Perlis for a total cash consideration of RM156.0 million. Further details of the SPA are set out in the said announcement. There were no other material events subsequent to the end of the financial year that have not been reflected in this financial statements.