ENRICHING LIVES EXPANDING HORIZONS - Maxis

MAXIS BERHAD
ANNUAL REPORT 2011
119
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 (continued)
(ii) Financial year beginning on/after 1 January 2013 (continued)
• MFRS 12 “Disclosures of Interests in Other Entities” (effective from 1 January 2013) includes the disclosure requirements
for all forms of interests in other entities, including joint arrangements, associates, special purpose vehicles and other off
balance sheet vehicles. The Group and the Company are currently assessing MFRS 12’s full impact.
• MFRS 13 “Fair Value Measurement” (effective from 1 January 2013) aims to improve consistency and reduce complexity
by providing a precise definition of fair value and a single source of fair value measurement and disclosure requirements
for use across MFRSs. The requirements do not extend the use of the fair value accounting but provide guidance on how
it should be applied where its use is already required or permitted by other standards within MFRSs. The Group and the
Company are currently assessing MFRS 13’s full impact.
• MFRS 119 “Employee Benefits” (effective from 1 January 2013) was amended as follows: to eliminate the corridor
approach and recognise all actuarial gains and losses in other comprehensive income as they occur; to immediately
recognise all past service costs; and to replace interest cost and expected return on plan assets with a net interest amount
that is calculated by applying the discount rate to the net defined benefit liability (asset). These amendments do not have
any impact on the financial results and position of the Group and the Company.
• Amendment to MFRS 7 “Financial Instruments: Disclosures” (effective from 1 January 2013) requires more extensive
disclosures focusing on quantitative information about recognised financial instruments that are offset in the statement
of financial position and those that are subject to master netting or similar arrangements irrespective of whether they
are offset. The Group and the Company are currently assessing the impact of this amendment.
• Amendments to MFRS 101 “Presentation of Items of Other Comprehensive Income” (effective from 1 July 2012) provide
improvements to the presentation of items of other comprehensive income. The main change is the requirement to
group items within other comprehensive income that will be reclassified to the income statement in subsequent
periods separately, from items of other comprehensive income that will not. The amendments also reaffirm existing
requirements that items of other comprehensive income and income statement can be presented as a single statement
or two consecutive statements. Save for the presentation of other comprehensive income, these amendments are not
expected to have any material impact on the financial results and position of the Group and the Company.
• Amendment to MFRS 132 “Financial Instruments: Presentation” (effective from 1 January 2014) does not change the
current offsetting model in MFRS 132. It clarifies the meaning of ‘currently has a legally enforceable right of set-off’
that the right of set-off must be available today (not contingent on a future event) and legally enforceable for all
counterparties in the normal course of business. It clarifies that some gross settlement mechanisms with features that
are effectively equivalent to net settlement will satisfy the MFRS 132 offsetting criteria. The Group and the Company are
currently assessing the impact of this amendment.