NOTES TO THE FINANCIAL STATEMENTS
2. BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS (CONT’D) 4 MFRSs (cont’d)
2.4.2 Standards issued but not yet effective
At the date of authorisation of these financial statements, certain new standards, amendments and interpretations to existing standards have been published by MASB but are not yet effective and have not been early adopted by the Group and the Company.
Management anticipates that all relevant pronouncements will be adopted in the Group’s and the Company’s accounting policies for the first period beginning after the effective date of the pronouncement.
The initial application of the new standards, amendments and interpretations are not expected to have any material impacts to the financial statements of the Group and of the Company.
2.5 Significant accounting estimates and judgements
Estimates, assumptions concerning the future and judgements are made in the preparation of the financial statements. They affect the application of the Group’s and of the Company’s accounting policies and reported amounts of assets, liabilities, income and expenses, and disclosures made. Estimates and underlying assumptions are assessed on an on-going basis and are based on experience and relevant factors, including expectations of future events that are believed to be reasonable under the circumstances. The actual results may differ from the judgements, estimates and assumptions made by management, and will seldom equal the estimated results.
2.5.1 Estimation uncertainty
Information about significant estimates and assumptions that have the most significant effect on recognition and measurement of assets, liabilities, income and expenses are discussed below.
Useful lives of depreciable assets
The management estimates the useful lives of the property, plant and equipment to be within 1.42 to 50 years and reviews the useful lives of depreciable assets at each reporting period. The management assesses that the useful lives represent the expected utility of the assets to the Group and the Company. Actual results, however, may vary due to change in the expected level of usage and developments, which may result in an adjustment to the Group’s and the Company’s assets.
The management expects that the expected useful lives of the property, plant and equipment would not have material difference from the management’s estimation hence it would not result in Group’s and the Company’s profit for the financial year.
The carrying amount of the Group’s and of the Company’s property, plant and equipment at the reporting date is disclosed in Note 5 to the Financial Statements.
NOTES TO THE FINANCIAL STATEMENTS
- 30 SEPTEMBER 2020 (cont’d)
BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS (CONT’D)
Significant accounting estimates and judgements (cont’d)
Estimation uncertainty (cont’d)
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- 30 SEPTEMBER 2020 (cont’d)
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- 30 SEPTEMBER 2020 (cont’d)
SIGNIFICANT ACCOUNTING POLICIES
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NOTES TO THE FINANCIAL STATEMENTS
- 30 SEPTEMBER 2020 (cont’d)
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- 30 SEPTEMBER 2020 (cont’d)
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SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
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- 30 SEPTEMBER 2020 (cont’d)
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NOTES TO THE FINANCIAL STATEMENTS
- 30 SEPTEMBER 2020 (cont’d)
3. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)