ANNUAL REPORT 2016
47
Techno
Dex
Berhad
(627634-A)
3. BASIS OF PREPARATION (continued)
(ii)
The Group and the Company has not applied in advance the following accounting standards and
interpretations (including the consequential amendments, if any) that have been issued by the Malaysian
Accounting Standards Board (MASB) but are not yet effective for the current financial year:-
MFRSs and IC Interpretations (Including The Consequential Amendments)
Effective Date
MFRS 107 Disclosure Initiative (Amendments to MFRS 107)
1 January 2017
MFRS 112 Recognition of Deferred Tax Assets for
Unrealised Losses (Amendments to MFRS 102)
1 January 2017
MFRS 9 (2014) Financial Instruments
1 January 2018
MFRS 15 Revenue from Contracts with Customers
1 January 2018
MFRS 15 Revenue from Contracts with Customers: Clarifications to MFRS 15
1 January 2018
MFRS 16 Leases
1 January 2019
The above accounting standards and interpretations (including the consequential amendments) are not
relevant to the Group’s and the Company’s operations except as follows:-
MFRS 15 establishes a single comprehensive model for revenue recognition and will supersede the current
revenue recognition guidance and other related interpretations when it becomes effective. Under MFRS
15, an entity shall recognise revenue when (or as) a performance obligation is satisfied, i.e. when ‘control’
of the goods or services underlying the particular performance obligation is transferred to the customers.
In addition, extensive disclosures are required by MFRS 15. The Group/Company anticipates that the
application of MFRS 15 in the future may have a material impact on the amounts reported and disclosures
made in the financial statements. However, it is not practicable to provide a reasonable estimate of the
financial impacts of MFRS 15 until the Group/Company performs a detailed review.
MFRS 9 replaces the parts of MFRS 139 that relate to the classification and measurement of financial
instruments. MFRS 9 divides all financial assets into 2 categories – those measured at amortised cost and
those measured at fair value, based on the entity’s business model for managing its financial assets and the
contractual cash flow characteristics of the instruments. For financial liabilities, the standard retains most of
the MFRS 139 requirement. An entity choosing to measure a financial liability at fair value will present the
portion of the change in its fair value due to changes in the entity’s own credit risk in other comprehensive
income rather than within profit or loss. There will be no financial impact on the financial statements of the
Group upon its initial application but may impact its future disclosures.
4. SIGNIFICANT ACCOUNTING POLICIES
4.1 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
Estimates and judgements are continually evaluated by the directors and management and are based
on historical experience and other factors, including expectations of future events that are believed to
be reasonable under the circumstances. The estimates and judgements that affect the application of the
Group’s accounting policies and disclosures, and have a significant risk of causing a material adjustment to
the carrying amounts of assets, liabilities, income and expenses are discussed below:-
NOTES TO THE
FINANCIAL STATEMENTS
(continued)
