2. Significant accounting policies (cont’d.)
2.3 Standards Issued But Not Yet Effective (cont’d.)
FRS 9 Financial Instruments
In November 2014, MASB issued the final version of FRS 9 Financial Instruments which reflects all phases
of the financial instruments project and replaces FRS 139 Financial Instruments: Recognition and
Measurement and all previous versions of FRS 9. The standard introduces new requirements for
classification and measurement, impairment and hedge accounting. FRS 9 is effective for annual periods
beginning on or after 1 January 2018, with early application permitted. Retrospective application is
required, but comparative information is not compulsory. The adoption of FRS 9 will have an effect on the
classification and measurement of the Group’s financial assets, but no impact on the classification and
measurement of the Group’s financial liabilities.
Amendments to FRS 134: Interim Financial Reporting
MFRS 134 requires entities to disclose information in the notes to the interim financial statements ‘if not
disclosed elsewhere in the interim financial report’.
The amendment states that the required interim disclosures must either be in the interim financial
statements or incorporated by cross-reference between the interim financial statements and wherever
they are included within the greater interim financial report (e.g., in the management commentary or risk
report). The other information within the interim financial report must be available to users on the same
terms as the interim financial statements and at the same time.
2.4 Malaysian Financial Reporting Standards
On 19 November 2011, the Malaysian Accounting Standards Board (MASB) issued a new MASB approved
accounting framework, the Malaysian Financial Reporting Standards (MFRS Framework). The MFRS
Framework is effective for annual periods beginning on or after 1 January 2012 for all entities except for
entities that are within the scope of MFRS 141 Agriculture and IC Interpretation 15 Agreements for
Construction of Real Estate (IC 15), including its parent, significant investor and venturer (herein called
Transitioning Entities). Adoption of the MFRS framework by Transitioning Entities will only be mandatory
for annual periods beginning on or after 1 January 2018.
The Group falls under the scope definition of Transitioning Entities and has opted to adopt MFRS for
annual periods beginning on 1 January 2018. When the Group presents its first MFRS financial statements
on 1 January 2018, the Group will be required to restate the comparative financial statements to amounts
reflecting the application of MFRS Framework. The majority of the adjustments required on transition will
be made retrospectively against opening retained profits.
Under the FRS framework, the Group’s accounting policy for biological assets are as disclosed in Note
2.5(e). Under the amendments, biological assets that meet the definition of bearer plants will no longer
be within the scope of MFRS 141. Instead, MFRS 116 will apply. After initial recognition, bearer plants will
be measured under MFRS 116 at accumulated cost (before maturity) and using either the cost model or
revaluation model (after maturity). The amendments also require that produce that grows on bearer
plants will remain in the scope of MFRS 141 and are measured at fair value less costs of disposal.
At the date of these financial statements, the Group has not completed its quantification of the financial
effects on the financial statements of the differences arising from the change from FRS to MFRS.
Accordingly, the consolidated financial performance and financial position as disclosed in these financial
statements for the financial years ended 31 December 2014 and 31 December 2015 could be different if
prepared under the MFRS Framework.
an n ual repo rt 2015
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