Dagang NeXchange Berhad Annual Report 2018

36. SIGNIFICANT CHANGES IN ACCOUNTING POLICIES (CONTINUED) Initial application of MFRS 9 (continued) (b) The Group has changed its impairment loss methodology from the ‘incurred loss’ approach to the ‘expected credit loss’ approach upon adoption of MFRS 9. Under this new approach, the Group has accounted for the expected credit losses of its financial assets measured at amortised cost and contract assets to reflect changes in credit risk since initial recognition. Also, the Group has applied a simplified approach to measure the loss allowance of its trade receivables and contract assets as permitted by MFRS 9. Company There were no material financial impacts upon the transition of MFRS 9 at the date of initial application other than an increase in the loss allowance for amount due from subsidiaries arising from the change in impairment loss assessment. Initial application of MFRS 15 The Group has adopted MFRS 15 with modified retrospective application using the following practical expedients of which the cumulative financial impacts are recognised in the opening statements of financial position on 1 January 2018 (date of initial application of MFRS 15): (i) The Group has chosen to apply MFRS 15 retrospectively only to contracts that were not completed at the date of initial application; and (ii) For completed contracts that have variable consideration, the Group has chosen to use the transaction price at the date the contract was completed rather than estimating variable consideration amounts. The adoption of MFRS 15 did not have any material impact on the Group’s financial statements as the timing and amount of revenue recognised under MFRS 15 are consistent to the Group’s current practice. 37. Comparative figures The following figures have been reclassified to conform with the adoption of MFRS 9 as disclosed in Note 1 to the financial statements: As previously reported As restated RM’000 RM’000 Statements of profit or loss and other comprehensive income Group Net loss on impairment of financial instruments and contract assets - (329) Other operating expenses (57,780) (57,365) Other operating income 7,156 7,070 181 Annual Report 2018 Notes to the Financial Statements (CONTINUED) FINANCIAL STATEMENTS