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NOTES TO THE FINANCIAL STATEMENTS (cont’d)
31 DECEMBER 2012
2 SIGNIFICANT ACCOUNTING POLICIES (cont’d)
2.3 Standards Issued but not yet Effective (contd)
(b) MFRS 9: Financial Instruments
MFRS 9 addresses the classification, measurement and recognition of financial assets and financial liabilities.
It replaces the parts of MFRS 139 that relate to the classification and measurement of financial instruments.
MFRS 9 requires financial assets to be classified into two measurement categories: those measured as at fair
value and those measured at amortised cost. The determination is made at initial recognition. The classification
depends on the entity’s business model for managing its financial instruments and the contractual cash
flow characteristics of the instrument. For financial liabilities, the standard retains most of the MFRS 139
requirements. The main change is that, in cases where the fair value option is taken for financial liabilities,
the part of a fair value change due to an entity’s own credit risk is recorded directly in other comprehensive
income, unless this creates an accounting mismatch. The Company is yet to assess MFRS 9’s full impact and
intends to adopt MFRS 9 no later than the accounting period beginning on or after 1 January 2015.
(c) MFRS 10: Consolidated Financial Statements
MFRS 10 establishes a single control model that applies to all entities including special purpose entities. It
establishes control as the basis of determining which entities are consolidated in the consolidated financial
statements and sets out the accounting requirements for the preparation of consolidated financial statements.
It replaces all the guidance on control and consolidation in MFRS 127: Consolidated and separate financial
statements and IC Interpretation 12: Consolidation – special purpose entities.
(d) MFRS 12: Disclosure of Interests in Other Entities
MFRS 12 includes all disclosure requirements for interests in subsidiaries, joint arrangements, associates and
structured entities. A number of new disclosures are required. This standard affects disclosure only and has
no impact on the Group’s financial position or performance.
(e) MFRS 13: Fair Value Measurement
MFRS 13 aims to improve consistency and reduce complexity by establishing a single source of fair value
measurement and disclosure requirements for use across MFRSs. MFRS 13 does not change when an entity is
required to use fair value, but rather provides guidance on how to measure fair value under MFRS when fair
value is required or permitted. The Group is currently assessing the impact of adoption of MFRS 13.
(f) Amendments to MFRS 101: Presentation of Items of Other Comprehensive Income
The amendments change the grouping of items presented in Other Comprehensive Income. Items that could
be reclassified (or “recycled”) to profit of less at future point in time (for example, upon decrecognition or
settlement) would be presented separately from items that will never be reclassified. The amendment affects
presentation only and has no impact on the Group’s financial position or performance.
(g) MFRS 127: Separate Financial Statements (revised)
As consequence of the new MFRS 10 and MFRS 12, the revised MFRS 127 is limited to the accounting for
subsidiaries, jointly controlled entities and associates in separate financial statements.
(h) Amendments to MFRS 132: Financial Instruments: Presentation
The amendment does not change the current offsetting model in MFRS 132. It clarifies the meaning of “currently
has a legal enforceable right of set-off” that the right of set-off must be available today (not contingent on
a future event) and legally enforceable for all counterparties in the normal course of business.
Gunung Capital Berhad (330171-P)
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annual report | 2012