MITRA-AnnualReport2011 (1.2MB).pdf - Announcements - Bursa ...

Notes to The Financial Statements (cont’d)
2. SUMMARy of SIGNIfICANT ACCoUNTING polICIES (CoNT’D)
2.2 New and Revised fRSs, Amendments/Improvements to fRSs, New IC Interpretations (“IC Int”), Amendments
to IC Int and New Malaysian Accounting Standards Board (“MASB”) Approved Accounting Standards, Malaysian
financial Reporting Standards (“MfRSs”) (cont’d)
(b) New and Revised fRSs, Amendments/Improvements to fRSs, New IC Int and Amendments to IC Int that
are issued, not yet effective and have not been adopted early (cont’d)
FRS 13 Fair Value Measurement
FRS 13 defines fair value and sets out a framework for measuring fair value, and the disclosure requirements
about fair value. This standard is intended to address the inconsistencies in the requirements for measuring
fair value across different accounting standards. As defined in this standard, fair value is the price that
would be received to sell an asset or paid to transfer a liability in an orderly transaction between market
participants at the measurement date.
Amendments to FRS 112 Income Taxes
This amendment to FRS 112 addresses the measurement approach for deferred tax assets and liabilities in
respect of investment properties which are measured at fair value. The amendment introduces a rebuttable
presumption that the investment property is recovered entirely through sale. In such cases, deferred tax
assets or liabilities are provided at tax rates applicable when recovering the property entirely through sale.
If this presumption is rebutted, deferred tax assets or liabilities are provided based on tax rates applicable
when consuming substantially the economic benefits embodied in the property over a period of time (for
example via rental income).
FRS 128 Investments in Associates and Joint Ventures (Revised)
This revised FRS 128 incorporates the requirements for accounting for joint ventures into the same
accounting standard as that for accounting for investments in associates, as the equity method was
applicable for both investments in joint ventures and associates. However, the revised FRS 128 exempts
the investor from applying equity accounting where the investment in the associate or joint venture is held
indirectly via venture capital organisations or mutual funds and similar entities. In such cases, the entity
shall measure the investment at fair value through profit or loss, in accordance with FRS 9.
(c) MASB Approved Accounting Standards, MfRSs
In conjunction with the planned convergence of FRSs with International Financial Reporting Standards
as issued by the International Accounting Standards Board on 1st January 2012, the MASB had on 19th
November 2011 issue a new MASB approved accounting standards, MFRSs (“MFRSs Framework”) for
application in the annual periods beginning on or after 1st January 2012.
The MFRSs Framework is mandatory for adoption by all Entities Other Than Private Entities for annual
periods beginning on or after 1st January 2012, with the exception of entities subject to the application
of MFRS 141 Agriculture and/or IC Int 15 Agreements for the Construction of Real Estate (“Transitioning
Entities”). The Transitioning Entities are given an option to defer adoption of the MFRSs framework for an
additional one year. Transitioning Entities also includes those entities that consolidate or equity account
or proportionately consolidate another entity that has chosen to continue to apply the FRSs framework for
annual periods beginning on or after 1st January 2012.
Accordingly, certain subsidiaries of the Group and the Company which are Transitioning Entities have chosen
to defer the adoption of the MFRSs framework for an additional one year. The Group and the Company will
prepare its first MFRSs financial statements using the MFRSs framework for the financial year ending 31st
December 2013.
MITRAJAYA HOLDINGS BERHAD ANNUAL REPORT 2011
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