ENRICHING LIVES EXPANDING HORIZONS - Maxis

118
Financial Statements
NOTES TO THE
FINANCIAL STATEMENTS
31 December 2011
Continued
2 BASIS OF PREPARATION (CONTINUED)
(ii) Standards and amendments to published standards that are applicable to the Group and the Company but not
yet effective
The Group and the Company will apply the new standards and amendments to standards in the following periods:
(i) Financial year beginning on/after 1 January 2012
The Group and the Company will be adopting the new International Financial Reporting Standards (“IFRS”) – compliant
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. Save for the presentation of
three Statements of Financial Position in the first MFRS financial statements, the Group and the Company do not expect
any significant impact on the Group’s and the Company’s financial results and position, and changes to the accounting
policies of the Group and the Company arising from the adoption of this standard.
• The MFRS 124 “Related Party Disclosures” (effective from 1 January 2012) removes the exemption to disclose
transactions between government-related entities and the government, and all other government-related entities. The
following new disclosures are now required for government-related entities:
- The name of the government and the nature of the relationship;
- The nature and amount of each individually significant transaction; and
- The extent of any collectively significant transactions, qualitatively or quantitatively.
This MFRS is not expected to have any material impact on the financial results and position of the Group and the
Company.
(ii) Financial year beginning on/after 1 January 2013
• MFRS 9 “Financial Instruments” (effective from 1 January 2015) addresses the classification, measurement and
recognition of financial assets and financial liabilities. It replaces the part of MFRS 139 that relates to classification and
measurement of financial instruments. MFRS 9 requires financial assets to be classified into two measurement
categories: those measured at fair value and those measured at amortised cost. The determination is made at initial
recognition. The classification depends on the entity’s business model for managing its financial instruments and the
contractual cash flow characteristics of the instrument. For financial liabilities, the standard retains most of the MFRS 139
requirements. However, where the financial liabilities are designated at fair value through profit or loss using fair value
option, the part of a fair value change due to an entity’s own credit risk is recorded in other comprehensive income rather
than the income statement, unless this creates an accounting mismatch. The Group and the Company are currently
assessing MFRS 9’s full impact.
• MFRS 10 “Consolidated Financial Statements” (effective from 1 January 2013), which replaces part of MFRS 127
“Consolidated and Separate Financial Statements” and all of IC Interpretation 112 “Consolidation – Special Purpose
Entities”, build on existing principles by identifying the concept of control as the determining factor whether an
entity should be included within the consolidated financial statements of the parent company. The standard provides
additional guidance to assist in the determination of control where this is difficult to assess. The Group is currently
assessing MFRS 10’s full impact.
The remainder of MFRS 127 “Separate Financial Statements” (effective 1 January 2013) now contains accounting and
disclosure requirements for investment in subsidiaries, joint ventures and associates only when an entity prepares separate
financial statements. This MFRS does not have any significant impact on the financial results and position of the Group
and the Company.