APM AUTOMOTIVE HOLDINGS BERHAD
50
NOTES TO THE
FINANCIAL STATEMENTS
1.
Basis of preparation (continued)
(a) Statement of compliance (continued)
The initial application of the accounting standards, amendments or interpretations are not expected to
have any material impacts to the financial statements of the Group and the Company except as mentioned
below:-
MFRS 15, Revenue from Contracts with Customers
MFRS 15 replaces the guidance in MFRS 111,
Construction Contracts
, MFRS 118,
Revenue
, IC
Interpretation 13,
Customer Loyalty Programmes
, IC Interpretations 15,
Agreements for Construction of
Real Estate
, IC interpretation 18,
Transfers of Assets from Customers
and IC Interpretation 131,
Revenue –
Barter Transactions involving Advertising Services
.
The Group is currently assessing the financial impact that may arise from the adoption of MFRS 15.
MFRS 9, Financial Instruments
MFRS 9 replaces the guidance in MFRS 139,
Financial Instruments: Recognition and Measurement
on the
classification and measurement of financial assets and financial liabilities and on hedge accounting.
The Group is currently assessing the financial impact that may arise from the adoption of MFRS 9.
(b) Basis of measurement
The financial statements have been prepared on the historical cost basis other than those as disclosed in
Note 2.
(c) Functional and presentation currency
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.
(d) Use of estimates and judgements
The preparation of the financial statements in conformity with Malaysian Financial Reporting Standards
(MFRSs) requires management to make judgements, estimates and assumptions that affect the application
of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results
may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimates are revised and in any future periods
affected.
There are no significant areas of estimation uncertainty and critical judgements in applying accounting
policies that have significant effect on the amounts recognised in the financial statements other than those
disclosed in the following notes:
Note 3 - Valuation of property, plant and equipment
Note 5 - Valuation of investment properties
Note 19 - Provisions for warranties and contingent liabilities
