U N I T E D M A L AYA N L A N D B H D ( 4 1 3 1 - M )
91
Notes to the Financial Statements FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2009
2.
S U M M A RY O F S I G N I F I C A N T A C C O U N T I N G P O L I C I E S ( C O N T ’ D . )
(a)
Basis of preparation (cont’d.) (i)
Standards, amendments to published standards and interpretations to existing standards that are not yet effective and have not been early adopted The Group and Company have not early adopted the following standards, amendments to published standards and interpretations to existing standards that are mandatory for financial periods beginning on or after 1 January 2010 or later periods: • Amendment to FRS 1 “First-time Adoption of Financial Reporting Standards” and FRS 127 “Consolidated and Separate Financial Statements: Cost of an Investment in a Subsidiary, Jointly Controlled Entity or Associate” (effective for financial periods beginning on or after 1 January 2010). This amendment allows first-time adopters to use a deemed cost of either fair value or the carrying amount under previous accounting practice to measure the initial cost of investments in subsidiaries, jointly controlled entities and associates in the separate financial statements. The amendment also removes the definition of the cost method from FRS 127 and requires investors to present dividends as income in the separate financial statements. • Amendment to FRS 2 “Share-based Payment – Vesting Conditions and Cancellations” (effective for financial periods beginning on or after 1 January 2010). This amendment deals with vesting conditions and cancellations. It clarifies that vesting conditions are service conditions and performance conditions only. Other features of a share-based payment are not vesting conditions. These features would need to be included in the grant date fair value for transactions with employees and others providing similar services; they would not impact the number of awards expected to vest or valuation there of subsequent to grant date. All cancellations, whether by the entity or by other parties, should receive the same accounting treatment. • Amendment to FRS 5 “Non-current Assets Held for Sale and Discontinued Operations” (effective for financial periods beginning on or after 1 January 2010). This amendment clarifies that FRS 5 disclosures apply to non-current assets or disposal groups that are classified as held for sale and discontinued operations. • FRS 7 “Financial Instruments: Disclosures” and Amendment to FRS 7 (effective for financial periods beginning on or after 1 January 2010). This standard provides information to users of financial statements about an entity’s exposure to risks and how the entity manages those risks. The improvement to FRS 7 clarifies that entities must not present total interest income and expense as a net amount within finance costs on the face of the income statement. •
FRS 8 “Operating Segments” (effective for financial periods beginning on or after 1 July 2009). This standard requires a ‘management approach’, under which segment information is reported in a manner that is consistent with the internal reporting provided to the chief operating decision-maker.
• Amendment to FRS 8 “Operating Segments” (effective for financial periods beginning on or after 1 January 2010). This amendment clarifies that entities that do not provide information about segment assets to the chief operating decisionmaker will no longer need to report this information. Prior year comparatives must be restated.