annual report 2014
I
Notes to the Financial Statements
31 December 2014 (Cont’d)
77
4.
SIGNIFICANT ACCOUNTING POLICIES (cont’d)
4.20 Fair value measurements
The fair value of an asset or a liability is determined as 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. The fair
value measurement assumes that the transaction to sell the asset or transfer the liability takes place either in
the principal market or in the absence of a principal market, in the most advantageous market.
The Group measures the fair value of an asset or a liability by taking into account the characteristics of the
asset or liability if market participants would take these characteristics into account when pricing the asset or
liability. The Group has considered the following characteristics when determining fair value:
(a)
The condition and location of the asset; and
(b)
Restrictions, if any, on the sale or use of the asset.
The fair value measurement for a non-financial asset takes into account the ability of the market participant
to generate economic benefits by using the asset in its highest and best use or by selling it to another market
participant that would use the asset in its highest and best use.
The fair value of a financial or non-financial liability or an entity’s own equity instrument assumes that:
(a)
A liability would remain outstanding and the market participant transferee would be required to fulfil
the obligation. The liability would not be settled with the counterparty or otherwise extinguished on the
measurement date; and
(b)
An entity’s own equity instrument would remain outstanding and the market participant transferee would
take on the rights and responsibilities associated with the instrument. The instrument would not be
cancelled or otherwise extinguished on the measurement date.
5.
ADOPTION OF NEW MFRSs AND AMENDMENT TO MFRSs
5.1 New MFRS adopted during the financial year
The Group and the Company adopted the following Standards of the MFRS Framework that were issued by
the Malaysian Accounting Standards Board (“MASB”) during the financial year.
Title
Effective Date
Amendments to MFRS 10
Consolidated Financial Statements:
1 January 2014
Investment Entities
Amendments to MFRS 12
Disclosure of Interest in Other Entities:
1 January 2014
Investment Entities
Amendments to MFRS 127
Separate Financial Statements (2011):
1 January 2014
Investment Entities
Amendments to MFRS 132
Offsetting Financial Assets and Financial Liabilities
1 January 2014
Amendments to MFRS 136
Recoverable Amount Disclosures for Non-Financial Assets
1 January 2014
Amendments to MFRS 139
Novation of Derivatives and Continuation of
1 January 2014
Hedge Accounting
IC Interpretation 21
Levies
1 January 2014
The adoption of the above Standards had no material impact on the financial statements of the Group and
the Company.
