Annual Report 2012, PDF - Axiata Group Berhad - Investor Relations

NOTES TO THEFINANCIAL STATEMENTSFOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2012 (CONTINUED)2. BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS (CONTINUED)(b) Standards, revised and amendments to published standards that are applicable to the Group andthe Company but not yet effective (continued)(iii) Financial year beginning on/after 1 January 2015• MFRS 9 “Financial instruments - classification and measurement of financial assets and financialliabilities” (effective from 1 January 2015) replaces the multiple classification and measurementmodels in MFRS 139 with a single model that has only two classification categories: amortised costand fair value. The basis of classification depends on the entity’s business model for managing thefinancial assets and the contractual cash flow characteristics of the financial asset.The accounting and presentation for financial liabilities and for de-recognising financial instrumentshas been relocated from MFRS 139, without change, except for financial liabilities that are designatedat fair value through profit or loss (“FVTPL”). Entities with financial liabilities designated at FVTPLrecognise changes in the fair value due to changes in the liability’s credit risk directly in othercomprehensive income. There is no subsequent recycling of the amounts in other comprehensiveincome to profit or loss, but accumulated gains or losses may be transferred within equity.The guidance in MFRS 139 on impairment of financial assets and hedge accounting continues toapply.MFRS 7 requires disclosures on transition from MFRS 139 to MFRS 9.The impact of MFRS 9 and MFRS 10 is still being assessed. Aside from the above mentioned, the adoptionof the standards, revised and amendments to published standards are not expected to have a materialimpact to the financial statements of the Group and the Company.(c) Interpretations to existing standards that are not relevant and not yet effective for the Group andthe Company• IC Interpretation 20 “Stripping costs in the production phase of a surface mine”3. SIGNIFICANT ACCOUNTING POLICIES(a) Economic entities in the Group(i)SubsidiariesSubsidiaries are those companies or other entities (including special purpose entities) in which theGroup has the ability to exercise control over the financial and operating policies so as to obtainbenefits from their activities, generally accompanying a shareholding of more than one half of thevoting rights. The existence and effect of potential voting rights that are currently exercisable orconvertible are considered when assessing whether the Group controls another entity.Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They aredeconsolidated from the date that control ceases.178