Page 155 - SC Annual Report 2018 (ENG)
P. 155
Securities
Commission
Malaysia
ANNUAL
REPORT
2018
Financial instruments not carried at fair value
Type description of valuation technique and input used
Long-term receivables Discounted cash flows using a rate based on the current market rate
of borrowing.
20. Reserves management
The SC’s financial management objective is to maintain adequate reserves to safeguard the SC’s ability
to perform its duties and functions independently and effectively. Management monitors the long-term
capital commitments to ensure that sufficient funds are available to meet the obligations. The SC’s
investments are managed in a prudent manner to ensure the preservation of the funds.
21. significant changes in accounting policies
During the year, the SC adopted MFRS 15, Revenue from Contracts with Customers and MFRS 9,
Financial Instruments on their financial statements. The SC generally applied the requirement of this
accounting standard retrospectively with practical expedients and transitional exemptions as allowed
by the standards. Nevertheless, as permitted by MFRS 9, the SC have elected not to restate the
comparatives. There are no significant impact from the adoption of MFRS 15.
21.1 Accounting for financial instruments
a. Transition
In the adoption of MFRS 9, the following transitional exemptions as permitted by the
standard have been adopted:
(i) The SC have not restated comparative information for prior periods with respect
to classification and measurement requirements. Accordingly, the information
presented for 2017 does not generally reflect the requirements of MFRS 9, but
rather those of MFRS 139, Financial Instruments: Recognition and Measurement.
(ii) The following assessments have been made based on the facts and circumstances
that existed at the date of initial application:
– the determination of the business model within which a financial asset is held.
(iii) Loss allowance for receivables (other than trade receivables) is recognised at an
amount equal to lifetime expected credit losses until the receivable is derecognised.
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