Notes to the Financial Statements - Cahaya Mata Sarawak Bhd

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Notes to the Financial Statements
For the fi nancial year ended 31 December 2011
2. Summary of signifi cant accounting policies (contd.)
2.3 Malaysian Financial Reporting Standards
On 19 November 2011, the Malaysian Accounting Standards Board (MASB) issued a new MASB approved
accounting framework, the Malaysian Financial Reporting Standards (MFRS Framework).
The MFRS Framework is to be applied by all Entities Other Than Private Entities for annual periods beginning
on or after 1 January 2012, with the exception of entities that are within the scope of MFRS 141 Agriculture
(MFRS 141) and IC Interpretation 15 Agreements for Construction of Real Estate (IC 15), including its
parent, signifi cant investor and venturer.
The Group will be preparing fi nancial statements using the MFRS Framework in its fi rst MFRS fi nancial
statements for the year ending 31 December 2012. In presenting its fi rst MFRS fi nancial statements, the
Group will be required to restate the comparative fi nancial statements to amounts refl ecting the application
of MFRS Framework. The majority of the adjustments required on transition will be made, retrospectively,
against opening retained profi ts.
The Group has established a project team to plan and manage the adoption of the MFRS Framework.
The Group has not completed its assessment of the fi nancial effects of the differences between Financial
Reporting Standards and accounting standards under the MFRS Framework. Accordingly, the consolidated
fi nancial performance and fi nancial position as disclosed in these fi nancial statements for the year ended
31 December 2011 could be different if prepared under the MFRS Framework.
The Group considers that it is achieving its scheduled milestones and expects to be in a position to fully
comply with the requirements of the MFRS Framework for the fi nancial year ending 31 December 2012.
2.4 Basis of consolidation
The consolidated fi nancial statements comprise the fi nancial statements of the Company and its
subsidiaries as at the reporting date. The fi nancial statements of the subsidiaries used in the preparation
of the consolidated fi nancial statements are prepared for the same reporting as the Company. Consistent
accounting policies are applied to like transactions and events in similar circumstances.
All intra-group balances, income and expenses and unrealised gains and losses resulting from intra-group
transactions are eliminated in full.
Acquisitions of subsidiaries are accounted for by applying the acquisition method. Identifi able assets
acquired and liabilities assumed in a business combination are measured initially at their fair values at the
acquisition date. Acquisition-related costs are recognised as expenses in the periods in which the costs
are incurred and the services are received.
In business combinations achieved in stages, previously held equity interests in the acquiree are remeasured
to fair value at the acquisition date and any corresponding gain or loss is recognised in profi t or
loss.
The Group elects for each individual business combination, whether non-controlling interest in the acquiree
(if any) is recognised on the acquisition date at fair value, or at the non-controlling interest’s proportionate
share of the acquiree net identifi able assets.
Cahya Mata Sarawak Berhad