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129
Gamuda Berhad (29579-T) • Annual Report 2012
2.
Summary of significant accounting policies (cont’d.)
2.3 Standards issued but not yet effective (cont’d.)
FRS 127 Separate Financial Statements
As a consequence of the new FRS 10 and FRS 12, FRS 127 is limited to accounting for subsidiaries, jointly
controlled entities and associates in separate financial statements.
FRS 128 Investments in Associates and Joint Ventures
As a consequence of the new FRS 11 and FRS 12, FRS 128 is renamed as FRS 128 Investments in Associates
and Joint Ventures. This new standard describes the application of the equity method to investments in joint
ventures in addition to associates.
Malaysian Financial Reporting Standards (MFRS Framework)
on 19 November 2011, the Malaysian Accounting Standards Board (MASB) issued a new MASB approved
accounting framework, the Malaysian Financial Reporting Standards (MFRS Framework). This is in line with the
need for convergence with International Financial Reporting Standards (IFRS) in 2012.
The MFRS Framework is to be applied by all Entities other Than Private Entities for annual periods beginning
on or after 1 January 2012, with the exception of entities that are within the scope of MFRS 141 Agriculture
(MFRS 141) and IC Interpretation 15 Agreements for Construction of Real Estate (IC 15), including its parent,
significant investor and venturer (herein called ‘Transitioning Entities’).
Transitioning Entities will be allowed to defer adoption of the new MFRS Framework for two years and adoption
of the MFRS Framework by Transitioning Entities will be mandatory for annual periods beginning on or after 1
January 2014.
The Company falls within the scope definition of Transitioning Entities and accordingly, the Group and the
Company will be required to prepare financial statements using the MFRS Framework in its first MFRS financial
statements for the year ending 31 July 2015. In presenting its first MFRS financial statements, the Group
and the Company will be required to restate the comparative financial statements to amounts reflecting
the application of MFRS Framework. The majority of the adjustments required on transition will be made,
retrospectively, against opening retained profits.
2.4 Basis of consolidation
The consolidated financial statements comprise the financial statements of the Company and its subsidiaries
as at reporting date. The financial statements of the subsidiaries used in the preparation of the consolidated
financial statements are prepared for the same reporting date as the Company. When the reporting dates of
the parent and of the subsidiary are different, the subsidiary prepares additional financial statements as of the
same date as that of the parent for consolidation purposes. Consistent accounting policies are applied to like
transactions and events in similar circumstances.
All intra-group balances, income and expenses and unrealised gains and losses resulting from intra-group
transactions are eliminated in full. Intragroup losses that indicate an impairment may require recognition in
the consolidated financial statements.
NoTES To ThE FINANCIAL STATEMENTS
31 July 2012