Page 131 - SC Annual Report 2018 (ENG)

Securities
Commission
Malaysia
ANNUAL
REPORT
2018

MFRSs, Interpretations and amendments effective for annual periods beginning on or
after a date yet to be confirmed
• Amendments to MFRS 10, Consolidated Financial Statements and MFRS 128, Investments
in Associates and Joint Ventures – Sale or Contribution of Assets between an Investor and
its Associate or Joint Venture

The SC plans to apply the abovementioned accounting standards, amendments and
interpretations that are applicable and effective from its annual period beginning on or after 1
January 2019 and 1 January 2020, respectively.

The SC does not plan to apply MFRS 17, Insurance Contracts that is effective for annual periods
beginning on or after 1 January 2021 as it is not applicable to the SC.

The initial application of the accounting standards, amendments or interpretations are not
expected to have any material financial impacts to the current period and prior period financial
statements of the SC.

(b) Basis of measurement

The financial statements have been prepared on the historical cost basis other than as disclosed
in Note 2.
(c) Functional and presentation currency

These financial statements are presented in Ringgit Malaysia (RM), which is the SC’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 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 the following:

(i) Post-employment benefits

The provision is determined using actuarial valuation prepared by an independent actuary.
The actuarial valuation involved making assumptions about discount rate, medical
inflation rate, retirement age and life expectancy. As such, this estimated provision
amount is subject to significant uncertainty. The assumptions used to estimate the
provision are as disclosed in Note 9.

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