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Axiata Group Berhad | Annual Report 2016
FINANCIAL STATEMENTS
132
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2016
2.
BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS (CONTINUED)
(b) Standards and amendments to published standards that are applicable to the Group and the Company but not yet effective
(continued)
The Group and the Company will apply the new standards and amendments to standards in the following periods: (continued)
(ii) Financial year beginning on/after 1 January 2018 (continued)
•
IC Interpretation 22 “Foreign Currency Transactions and Advance Consideration” applies when an entity recognises a non-
monetary asset or non-monetary liability arising from the payment or receipt of advance consideration. MFRS 121 requires an
entity to use the exchange rate at the ‘date of the transaction’ to record foreign currency transactions.
IC Interpretation 22 provides guidance how to determine ‘the date of transaction’ when a single payment/receipt is made, as well
as for situations where multiple payments/receipts are made.
The date of transaction is the date when the payment or receipt of advance consideration gives rise to the non-monetary asset
or non-monetary liability when the entity is no longer exposed to foreign exchange risk.
If there are multiple payments or receipts in advance, the entity should determine the date of the transaction for each payment
or receipt.
•
Amendment to MFRS 2 “Share-based Payment” on Classification and Measurement of Share-based Payment Transactions. The
amendments provide guidance on how to account for the following situations:
0 The effects of vesting and non-vesting conditions on the measurement of cash-settled share-based payments;
0 The classification of a share-based payment transaction with net settlement features for withholding tax obligations; and
0 A modification to the terms and conditions of a share-based payment transaction that changes the classification of the
transaction from cash-settled to equity-settled.
•
Amendments to MFRS 128 to allow:
0 Venture capital organisations, mutual funds, unit trusts and similar entities to elect, on an individual basis, measuring their
investments in associates and joint ventures at fair value through profit or loss.
0 An entity that is not an investment entity to retain the fair value measurement applied by its associates or joint ventures
(that are investment entities) when applying equity method.
(iii) Financial year beginning on/after 1 January 2019
MFRS 16 “Leases” supersedes MFRS 117 “Leases” and the related interpretations.
Under MFRS 16, a lease is a contract (or part of a contract) that conveys the right to control the use of an identified asset for a period
of time in exchange for consideration.
MFRS 16 eliminates the classification of leases by the lessee as either finance leases (on balance sheet) or operating leases (off balance
sheet). MFRS 16 requires a lessee to recognise a “right-of-use” of the underlying asset and a lease liability reflecting future lease
payments for most leases.
The right-of-use asset is depreciated in accordance with the principle in MFRS 116 ‘Property, Plant and Equipment’ and the lease liability
is accreted over time with interest expense recognised in the income statement.
For lessors, MFRS 16 retains most of the requirements in MFRS 117. Lessors continue to classify all leases as either operating leases or
finance leases and account for them differently.
The impact of MFRS 9, MFRS 15 and MFRS 16 are still being assessed. Aside from MFRS 9 and MFRS 15 and MFRS 16, the adoptions of
amendments to published standards and IC Interpretation are not expected to have a material impact to the financial statements of the Group
and the Company.