2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
2.3 Standard issued but not yet effective (continued)
Amendments to MFRS 10, MFRS 12 and MFRS 128: Investment Entities: Applying the Consolidation Exception
The amendments clarify that the exemption from presenting consolidated financial statements applies to a parent entity
that is a subsidiary of an investment entity, when the investment entity measures all of its subsidiaries at fair value. The
amendments further clarify that only a subsidiary that is not an investment entity itself and provides support services to
the investment entity is consolidated. In addition, the amendments also provides that if an entity that is not itself an
investment entity has an interest in an associate or joint venture that is an investment entity, the entity may, when
applying the equity method, retain the fair value measurement applied by that investment entity associate or joint venture
to the investment entity associate’s or joint venture’s interests in subsidiaries.
The amendments are to be applied retrospectively and are effective for annual periods beginning on or after 1 January
2016, with early adoption permitted. These amendments will not have any impact on the Group’s and the Company’s
financial statements.
MFRS 15 Revenue from Contracts with Customers
MFRS 15 establishes a new five-step models that will apply to revenue arising from contracts with customers. MFRS 15
will supersede the current revenue recognition guidance including MFRS 118 Revenue, MFRS 111 Construction Contracts
and the related interpretations when it becomes effective.
The core principle of MFRS 15 is that an entity should recognise revenue which depict the transfer of promised goods or
services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange
for those goods or services.
Under MFRS 15, an entity recognises revenue when (or as) a performance obligation is satisfied, such as when “control”
of the goods or services underlying the particular performance obligation is transferred to the customer.
Either a full or modified retrospective application is required for annual periods beginning on or after 1 January 2017
with early adoption permitted. The Directors anticipate that the application of MFRS 15 will not have a material impact
on the amounts reported and disclosures made in the Group’s and the Company’s financial statements. The Group is
currently assessing the impact of MFRS 15 and plans to adopt the new standard on the required effective date.
MFRS 9 Financial Instruments
In November 2014, MASB issued the final version of MFRS 9 Financial Instruments which reflects all phases of the
financial instruments project and replaces MFRS 139 Financial Instruments: Recognition and Measurement and all
previous versions of MFRS 9. The standard introduces new requirements for classification and measurement, impairment
and hedge accounting. MFRS 9 is effective for annual periods beginning on or after 1 January 2018, with early application
permitted. Retrospective application is required, but comparative information is not compulsory.
The Group is currently assessing the impact and plans to adopt the new standard on the required effective date.
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Notes to the
Financial Statements
For the financial year ended 31 December 2014 (continued)
KPJ Healthcare Berhad annual report
2014
