Fraser & Neave Holdings Bhd Annual Report 2020

158 FRASER & NEAVE HOLDINGS BHD 196101000155 (4205-V) Notes to The Financial Statements (Cont’d.) 1. BASIS OF PREPARATION (CONTINUED) (A) STATEMENT OF COMPLIANCE (CONTINUED) MFRSs, interpretations and amendments effective for annual periods beginning on or after 1 January 2022 • Amendments to MFRS 1, First-time Adoption of Malaysian Financial Reporting Standards (Annual Improvements to MFRS Standards 2018−2020) • Amendments to MFRS 3, Business Combinations – Reference to the Conceptual Framework • Amendments to MFRS 9, Financial Instruments (Annual Improvements to MFRS Standards 2018−2020) • Amendments to Illustrative Examples accompanying MFRS 16, Leases (Annual Improvements to MFRS Standards 2018−2020) • Amendments to MFRS 116, Property, Plant and Equipment − Proceeds before Intended Use • Amendments to MFRS 137, Provisions, Contingent Liabilities and Contingent Assets − Onerous Contracts − Cost of Fulfilling a Contract • Amendments to MFRS 141, Agriculture (Annual Improvements to MFRS Standards 2018−2020) MFRSs, interpretations and amendments effective for annual periods beginning on or after 1 January 2023 • MFRS 17, Insurance Contracts • Amendments to MFRS 101, Presentation of Financial Statements – Classification of Liabilities as Current or Non-current MFRSs, interpretations and amendments effective for annual periods beginning on or after a date yet to be confirmed • Amendments to MFRS 10, Consolidated Financial Statements and MFRS 128, Investments in Associates and Joint Ventures – Sale or Contribution of Assets between an Investor and its Associate or Joint Venture The Group and the Company plan to apply the abovementioned accounting standards, interpretations and amendments: • from the annual period beginning on 1 October 2020 for those amendments that are effective for annual periods beginning on or after 1 January 2020 and 1 June 2020. • from the annual period beginning on 1 October 2021 for those amendments that are effective for annual periods beginning on or after 1 January 2021. • from the annual period beginning on 1 October 2022 for those amendments that are effective for annual periods beginning on or after 1 January 2022, except for amendments to MFRS 141, Agriculture (Annual Improvements to MFRS Standards 2018−2020) which is not applicable to the Group and the Company. • from the annual period beginning on 1 October 2023 for those amendments that are effective for annual periods beginning on or after 1 January 2023, except for MFRS 17, Insurance Contracts which is not applicable to the Group and the Company. The initial application of the abovementioned accounting standards and amendments are not expected to have any material financial impacts to the current period and prior period financial statements of the Group and of the Company. (B) BASIS OF MEASUREMENT The financial statements have been prepared on the historical cost basis except as disclosed in the accounting policies below. (C) FUNCTIONAL AND PRESENTATION CURRENCY These financial statements are presented in Ringgit Malaysia (“RM”), which is the Company’s functional currency. All financial information is presented in RM and has been rounded to the nearest thousand, unless otherwise stated. (D) USE OF ESTIMATES AND JUDGEMENTS The preparation of the financial statements in conformity with MFRSs requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected.