Dagang NeXchange Berhad Annual Report 2018

1. BASIS OF PREPARATION (CONTINUED) (a) Statement of compliance (continued) (ii) MFRS 15 requires an entity to recognise revenue to depict the transfer of promised goods or services to customers for an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Revenue is recognised when a customer obtains control of goods or services, ie. when the customer has the ability to direct the use of and obtain the benefits from the goods or services. The impacts on the financial statements upon the initial application of this accounting standard are disclosed in Note 36 to the financial statements. The Group has not applied in advance the following accounting standard(s) and/or interpretation(s) (including the consequential amendments, if any) that have been issued by the Malaysian Accounting Standards Board (MASB) but are not yet effective for the current financial year:- MFRSs and/or IC Interpretations (Including The Consequential Amendments) Effective Date MFRS 16 Leases 1 January 2019 MFRS 17 Insurance Contracts 1 January 2021 IC Interpretation 23 Uncertainty Over Income Tax Treatments 1 January 2019 Amendments to MFRS 3: Definition of a Business 1 January 2020 Amendments to MFRS 9: Prepayment Features with Negative Compensation 1 January 2019 Amendments to MFRS 10 and MFRS 128: Sale or Contribution of Assets between an Investor and its Associate or Joint Venture Deferred Amendments to MFRS 101 and MFRS 108: Definition of Material 1 January 2020 Amendments to MFRS 119: Plan Amendment, Curtailment or Settlement 1 January 2019 Amendments to MFRS 128: Long-term Interests in Associates and Joint Ventures 1 January 2019 Amendments to References to the Conceptual Framework in MFRS Standards 1 January 2020 Annual Improvements to MFRS Standards 2015 – 2017 Cycles 1 January 2019 The adoption of the above accounting standard(s) and/or interpretation(s) (including the consequential amendments, if any) is expected to have no material impact on the financial statements of the Group upon their initial application except as follows: MFRS 16 sets out the principles for the recognition, measurement, presentation and disclosure of leases and will replace the current guidance on lease accounting when it becomes effective. Under MFRS 16, the classification of leases as either finance leases or operating leases is eliminated for lessees. All lessees are required to recognise their leased assets and the related lease obligations in the statement of financial position (with limited exceptions). The leased assets are subject to depreciation and the interest on lease liabilities are calculated using the effective interest method. The Group is currently assessing the financial impact that may arise from the adoption of this standard. (b) Basis of measurement The financial statements have been prepared on the historical cost basis other than as disclosed in Note 2. (c) Functional and presentation currencies These financial statements are presented in Ringgit Malaysia (“RM”), which is the Company’s functional currency. All financial information is presented in RM and has been rounded to the nearest thousand, unless otherwise stated. 106 Dagang NeXchange Berhad Annual Report 2018 Notes to the Financial Statements (CONTINUED)