Dagang NeXchange Berhad Annual Report 2018

36. SIGNIFICANT CHANGES IN ACCOUNTING POLICIES As mentioned in Note 1(a) to the financial statements, the Group and the Company have adopted MFRS 9 and MFRS 15 during the financial year. The financial impacts upon the adoption of these accounting standards are summarised below: Statements of financial position At 1 January 2018 As previously MFRS 9 MFRS 15 reported adjustments adjustments As restated RM’000 RM’000 RM’000 RM’000 Group Assets Contract assets - - 12,812 12,812 Trade and other receivables 105,923 (4,273) (12,812) 88,838 Equity Retained earnings 72,864 (4,273) - 68,591 Company Assets Amount due from subsidiaries 60,297 (6,667) - 53,630 Equity Accumulated losses (56,643) (6,667) - (63,310) Initial application of MFRS 9 The Group has adopted MFRS 9 without restating any comparative information (transitional exemption). Therefore, the financial impacts arising from the new classification and measurement of financial instruments, and the new impairment requirements are not reflected in the statements of financial position as at 31 December 2017, but are recognised in the opening statements of financial position on 1 January 2018 (date of initial application of MFRS 9). The main impacts resulting from the changes made are summarised below: Classification and carrying amount Under Under Transition MFRS 139 MFRS 9 adjustment RM’000 RM’000 RM’000 Group (a) Reclassification from available-for-sale financial assets (“AFS”) to fair value through other comprehensive income (“FVOCI”) AFS FVOCI 4,233 4,233 - The Group intends to hold the investments in unquoted shares for long-term strategic purposes. These investments were measured at cost in prior periods. As permitted by MFRS 9, the Group has designated such investments as fair value through other comprehensive income, to be measured at fair value at each reporting date. 180 Dagang NeXchange Berhad Annual Report 2018 Notes to the Financial Statements (CONTINUED)