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Axiata Group Berhad | Annual Report 2016
FINANCIAL STATEMENTS
130
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2016
2.
BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS (CONTINUED)
(a) Standards and amendments to published standards that are applicable to the Group and the Company that are effective (continued)
•
Amendments to MFRS 10 “Consolidated Financial Statements”, MFRS 12 “Disclosure of Interests in Other Entities” and MFRS 128
“Investments in Associates and Joint Ventures” on Investment Entities: Applying the Consolidation Exception addresses issues that have
arisen in the context of applying the consolidation exception for investment entities. The amendments also provide relief in particular
circumstances, which will reduce the costs of applying the Standards, clarifying the exemption from preparing consolidated financial
statements for an intermediate parent entity, a subsidiary providing services that relate to the parent’s investment activities, application
of the equity method by a non-investment entity investor to an investment entity investee and the disclosures required.
•
Amendment to MFRS 127 “Separate Financial Statements” allows entities to use the equity method to account for investments in
subsidiaries, joint ventures and associates in their separate financial statements.
•
Annual Improvements 2012–2014 Cycle
0 MFRS 5 “Non-current Assets Held for Sale and Discontinued Operations” clarifies that, when an asset (or disposal group) is
reclassified from ‘held for sale’ to ‘held for distribution’, or vice versa, this does not constitute a change to a plan of sale or
distribution, and does not have to be accounted for as such. This means that the asset (or disposal group) does not need to be
reinstated in the financial statements as if it had never been classified as ‘held for sale’ or ‘held for distribution’ simply because
the manner of disposal has changed. The amendment also rectifies an omission in the standard by explaining that the guidance
on changes in a plan of sale should be applied to an asset (or disposal group) which ceases to be held for distribution but is not
reclassified as ‘held for sale’.
0 MFRS 7 “Financial Instruments: Disclosures” adds specific guidance to help management determine whether the terms of an
arrangement to service a financial asset which has been transferred constitute continuing involvement. The amendment clarifies
that the additional disclosure on Offsetting financial assets and financial liabilities’ is not specifically required for all interim
periods, unless required by MFRS 134 “Interim Financial Reporting”.
0 MFRS 119 “Employee Benefits” clarifies that, when determining the discount rate for post-employment benefit obligations, it
is currency that the liabilities are denominated in that is important, not the country where they arise. The assessment whether
there is a deep market in high-quality corporate bonds is based on corporate bonds in that currency, not corporate bonds in a
particular country. Similarly, where there is no deep market in high-quality corporate bonds in that currency, government bonds
denominated in the relevant currency should be used.
0 MFRS 134 “Interim Financial Reporting” requires a cross-reference from the interim financial statements to the location of that
information.
The adoption of new, amendments to published standards did not have any material impact to the financial statements of the Group and the
Company.
(b) Standards and amendments to published standards those are applicable to the Group and the Company but not yet effective
The Group and the Company will apply the new standards and amendments to standards in the following period.
(i) Financial year beginning on/after 1 January 2017
•
Amendments to MFRS 107 “Statement of Cash Flows” on disclosure initiative introduce an additional disclosure on changes in
liabilities arising from financing activities.
•
Amendments to MFRS 112 “Income Taxes” on recognition of deferred tax assets for unrealised losses clarify the requirements for
recognising deferred tax assets on unrealised losses arising from deductible temporary difference on asset carried at fair value. In
addition, in evaluating whether an entity will have sufficient taxable profits in future periods against which deductible temporary
differences can be utilised, the amendments require an entity to compare the deductible temporary differences with future taxable
profits that excludes tax deductions resulting from the reversal of those temporary differences. The amendments shall be applied
retrospectively.