Fraser & Neave Holdings Bhd Annual Report 2021

1. BASIS OF PREPARATION #CONTINUED$ #A$ STATEMENT OF COMPLIANCE #CONTINUED$ The Group and the Company plan to apply the abovementioned accounting standards, interpretations and amendments: • from the annual period beginning on 1 October 2021 for those amendments that are e!ective for annual periods beginning on or after 1 January 2021 and 1 April 2021, except for amendments to MFRS 4, Insurance Contracts which is not applicable to the Group and the Company. • from the annual period beginning on 1 October 2022 for those amendments that are e!ective 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 the accounting standard and amendments that are e!ective 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, interpretations and amendments are not expected to have any material financial impact 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 a!ect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may di!er 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 a!ected. There are no significant areas of estimation uncertainty and critical judgements in applying accounting policies that have significant e!ect on the amounts recognised in the financial statements other than those disclosed in the following notes: (i) Note 4 – extension options and incremental borrowing rate in relation to leases (ii) Note 5 – valuation of investment properties (iii) Note 7 – intangible assets (iv) Note 16(c) – share-based payments (v) Note 18 – employee benefits (vi) Note 20 – contract liabilities 176 NOTES TO THE F INANCIAL STATEMENTS