I
annual report 2014
Notes to the Financial Statements
31 December 2014 (Cont’d)
78
5.
ADOPTION OF NEW MFRSs AND AMENDMENT TO MFRSs (cont’d)
5.2 NewMFRSs that have been issued, but only effective for annual periods beginning on or after 1 January
2015
The following are Standards of the MFRS Framework that have been issued by the Malaysian Accounting
Standards Board (“MASB”) but have not been early adopted by the Group and the Company.
Title
Effective Date
Amendments to MFRS 119
Defined Benefit Plans: Employee Contributions
1 July 2014
Amendments to MFRSs
Annual Improvements 2010 - 2012 Cycle
1 July 2014
Amendments to MFRSs
Annual Improvements 2011 - 2013 Cycle
1 July 2014
MFRS 14
Regulatory Deferral Accounts
1 January 2016
Amendments to MFRS 10 and MFRS 128
Sale or Contribution of Assets between an
1 January 2016
Investor and its Associates or Joint Venture
Amendments to MFRS 116 and MFRS 138
Clarification of Acceptable Methods
1 January 2016
of Depreciation and Amortisation
Amendments to MFRS 11
Accounting for Acquisitions of Interests in Joint Operations
1 January 2016
Amendments to MFRS 116 and MFRS 141
Agriculture: Bearer Plants
1 January 2016
Amendments to MFRS 127
Equity Method in Separate Financial Statements
1 January 2016
Amendments to MFRSs
Annual Improvements to 2012 - 2014 Cycle
1 January 2016
Amendments to MFRS 101
Disclosure Initiative
1 January 2016
Amendments to MFRS 10, MFRS 12 and MFRS 128
Investment Entities:
1 January 2016
Applying the Consolidation Exception
MFRS 15
Revenue from Contracts with Customers
1 January 2017
MFRS 9
Financial Instruments (IFRS as issued by IASB in July 2014)
1 January 2018
The Group is in the process of assessing the impact of implementing these Standards, since the effects would
only be observable for future financial years.
6.
SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENTS
6.1 Changes in estimates
Estimates are continually evaluated and are based on historical experience and other factors, including
expectations of future events that are believed to be reasonable under the circumstances.
The Directors are of the opinion that there are no significant changes in estimates at the end of the reporting
period.
6.2 Critical judgements made in applying accounting policies
The following are judgements made by management in the process of applying the accounting policies of the
Group that have the most significant effect on the amounts recognised in the financial statements.
(a)
Deferred tax on undistributed earnings
The Group is subject to withholding tax on dividend in the tax jurisdiction in PRC. According to the
New Corporate Income Tax Law (“CIT”) and the Detailed Implementation Regulations (“DIR”), dividend
distributed to a foreign investor by Foreign Invested Enterprises (“FIE”) incorporated in PRC would be
subject to a withholding tax of 5% to 10%. PRC tax authorities have granted a special tax concession
which states that from 1 January 2008 onwards, dividend distributed out of a FIE’s profit arising in year
2008 and beyond, to be distributed to the foreign investors as dividend shall be subject to withholding
tax of 10%, which is subject to reduction as provided by the applicable double taxation treaty.
