Page 42 - AOB 2018 (ENG)

Audit
Oversight
Board
ANNUAL
REPORT
2018

(c) Functional and presentation currency

These financial statements are presented in Ringgit Malaysia (RM), which is AOB’s functional
currency. All financial information is presented in RM.

(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.

3. Significant accounting policies

The accounting policies set out below have been applied consistently to the periods presented in these
financial statements, and have been applied consistently by the AOB, unless otherwise stated.

Arising from the adoption of MFRS 15, Revenue from Contracts with Customers and MFRS 9, Financial
Instruments, there are changes to accounting policies of:

(i) financial instruments;
(ii) revenue recognition; and
(iii) impairment losses of financial instruments

as compared to those adopted in previous financial statements. There are no significant impact from
adoption of MFRS 15. The impact arising from adoption of MFRS 9 is disclosed in Note 14.

(a) Financial instruments

Unless specifically disclosed below, the AOB generally applied the following accounting policies
retrospectively. Nevertheless, as permitted by MFRS 9, Financial Instruments, the AOB has
elected not to restate the comparatives.

(i) Recognition and initial measurement

A financial asset or a financial liability is recognised in the statement of financial position
when, and only when, the AOB becomes a party to the contractual provisions of the
instrument.

40 | PART TWO STATEMENTS

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