Connecting the nation. and Beyond. - ChartNexus

172 / MRCB annual report 2011 /
NOTES TO THE FINANCIAL STATEMENTS
31 DECEMBER 2011
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont’d)
2.1 BASIS OF PREPARATION (cont’d)
(c) Standards, amendments to published standards and interpretations to existing standards that are applicable to the
Group but not yet effective (cont’d)
Financial year beginning on/after 1 January 2013
In the financial year beginning on/after 1 January 2013, the Group and the Company will be adopting the new IFRScompliant
framework, Malaysian Financial Reporting Standards (“MFRS”). MFRS 1 “First-time Adoption of MFRS”
provides for certain optional exemptions and certain mandatory exceptions for first-time MFRS adopters.
• IC Interpretation 15 “Agreements for Construction of Real Estates”
• MFRS 9 “Financial Instruments – Classification and Measurement of Financial Assets and Financial Liabilities”
• MFRS 10 “Consolidated Financial Statements”
• MFRS 11 “Joint Arrangements”
• MFRS 12 “Disclosures of Interests in Other Entities”
• MFRS 13 “Fair Value Measurement”
• The revised MFRS 127 “Separate Financial Statements”
• The revised MFRS 128 “Investments in Associates and Joint Ventures”
• Amendments to MFRS 1 “FirstTime Adoption on Fixed Dates and Hyperinflation”
• Amendments to MFRS 7 “Financial Instruments: Disclosures onTransfer of Financial Assets”
• Amendment to MFRS 101 “Financial Statements Presentation”
• Amendment to MFRS 119 “Employee Benefits”
2.2 ECONOMIC ENTITIES IN THE GROUP
(a) Subsidiaries
Subsidiaries are those corporations, partnerships or other entities (including special purpose entities) in which the
Group has power to govern the financial and operating policies so as to obtain benefits from their activities, generally
accompanying a shareholding of more than one half of the voting rights. The existence and effect of potential voting
rights that are currently exercisable or convertible are considered when assessing whether the Group controls another
entity.
Subsidiaries are consolidated using the purchase method of accounting.
Subsidiaries that were consolidated prior to 1 January 2002 are in accordance with Malaysia Accounting Standard 2
‘Accounting for Acquisitions and Mergers’, the generally accepted accounting principles prevailing at that time.
The Group has taken advantage of the exemption provided by FRS 3 (revised) to apply these standards prospectively.
Accordingly, business combinations entered into prior to the respective effective dates have not been restated to
comply with these standards.