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129
Financial
Statements
& Others
Gamuda Berhad (29579-T)
Annual Report 2013
2. Summary of significant accounting policies (cont’d.)
2.3 Standards issued but not yet effective (cont’d.)
FRS 13 Fair Value Measurement
FRS 13 establishes a single source of guidance under FRS for all fair value measurements. FRS 13 does not
change when an entity is required to use fair value, but rather provides guidance on how to measure fair value
under FRS when fair value is required or permitted.
FRS 119 Employee Benefits
FRS 119 requires to recognise the changes in defined benefit obligations and in fair value of plan assets when
they occur, and hence eliminate the “corridor approach” as permitted under the previous version of FRS 119
and accelerate the recognition of past service costs. The amendments require all actuarial gains and losses
to be recognised immediately through other comprehensive income in order for the net pension asset or
liability recognised in the consolidated statement of financial position to reflect the full value of the plan deficit
or surplus.
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 Investment in Associates and Joint Ventures
The revised FRS 128 prescribes the accounting for investment in associates as well as joint ventures where
the equity method of accounting is required in accordance with FRS 11.
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 three years and
adoption of the MFRS Framework by Transitioning Entities will be mandatory for annual periods beginning on
or after 1 January 2015.
The Group and the Company fall 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 2016. 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.
Notes to the Financial Statements
31 July 2013