Annual Report 2012 - IOI Group

NOTES TO THEFINANCIAL STATEMENTS3. ADOPTION OF NEW FRSs AND AMENDMENT TO FRSs (Continued)3.3 New Malaysian Financial Reporting Standards (‘MFRSs’) that have been issued, but not yet effective and not yetadopted, for annual periods beginning on or after 1 January 2014 (Continued)The MFRSs and IC Interpretations expected to be adopted are as follows (Continued):IC Interpretation 20 Stripping Costs in the Production Phase of a Surface MineIC Interpretation 107 Introduction of the EuroIC Interpretation 110 Government Assistance – No Specific Relation to Operating ActivitiesIC Interpretation 112 Consolidation – Special Purpose EntitiesIC Interpretation 113 Jointly Controlled Entities – Non-Monetary Contributions by VenturersIC Interpretation 115 Operating Leases – IncentivesIC Interpretation 125 Income Taxes – Changes in the Tax Status of an Entity or its ShareholdersIC Interpretation 127 Evaluating the Substance of Transactions Involving the Legal Form of a LeaseIC Interpretation 129 Service Concession Arrangements: DisclosuresIC Interpretation 131 Revenue – Barter Transactions Involving Advertising ServicesIC Interpretation 132 Intangible Assets – Web Site CostsThe Group is in the process of assessing the impact on the financial statements arising from the transition from FRSs to MFRSs.However, some of the known effects are described as follows:MFRS 1 First-time Adoption of Malaysian Financial Reporting StandardsThis Standard requires an opening MFRS statement of financial position at the date of transition to reflect the retrospectiveeffects of implementing the MFRS framework for the first time. However, it also provides some exceptions and exemptions toan entity from full retrospective application of MFRSs.The Group is in the process of assessing the impact of implementing the MFRS framework since the effects would only beobservable for the financial year ending 30 June 2015.MFRS 141 AgricultureThis Standard prescribes the accounting treatment, financial statements presentation, and disclosures related to agriculturalactivity. It requires measurement at fair value less costs to sell from initial recognition of biological assets up to the point ofharvest, other than when fair value cannot be measured realiably on initial recognition. This Standard requires that a changein fair value less costs to sell of a biological asset be included in profit or loss for the period in which it arises.The Group is in the process of assessing the impact of implementing this Standard since the effects would only be observablefor the financial year ending 30 June 2015.128IOI CORPORATION BERHADAnnual Report 2012