There were no recognised gains and losses other than the excess of income over expenditure after tax for the current financial year and the previous financial year.
The notes on pages [ 193 ] to [ 213 ] are an integral part of these financial statements.
Note 2014
RM’000 2013
RM’000
Cash flow from operating activities
Excess of income over expenditure before tax 350,922 65,984
Adjustments for:
Depreciation of property and equipment 12,387 16,438
(Gain)/Loss on disposal of equipment (33) 7
Interest income (72,853) (69,733)
Operating surplus before changes in working
capital 290,423 12,696
Changes in working capital:
Deferred income 147,832 38,170
Fees and other receivables and prepayments (25,723) 18,103
Other payables and accrued expenses 31,830 61,859
Cash generated from/(used in) operations 444,362 130,828
Tax paid (18,224) (17,606)
Net cash generated from/(used in) operating
activities 426,138 113,222
Cash flows from investing activities
Acquisition of property and equipment (i) (190,753) (196,747)
Interest received 58,227 75,994
Proceeds from disposal of equipment 106 3
Net cash used in investing activities (132,420) (120,750)
Net increase/(decrease) in cash and cash
equivalents 293,718 (7,528)
Cash and cash equivalents at 1 January 2,020,432 2,027,960
Cash and cash equivalents at 31 December 5 2,314,150 2,020,432
MALAYSIAN COMMUNICATIONS AND MULTIMEDIA COMMISSION STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2014
The notes on pages [ 193 ] to [ 213 ] are an integral part of these financial statements.
MALAYSIAN COMMUNICATIONS AND MULTIMEDIA COMMISSION STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2014
(i) Acquisition of property and equipment
Throughout the year, the Commission has purchased property and equipment with an aggregate cost amounting to RM268,641,000 (2013: RM218,498,000), as follows:
Nota 2014
RM’000 2013
RM’000
Settled through payment 190,753 196,747
Payable to suppliers 77,888 21,751
268,641 218,498
The notes on pages [ 193 ] to [ 213 ] are an integral part of these financial statements.
MALAYSIAN COMMUNICATIONS AND MULTIMEDIA COMMISSION NOTES TO THE FINANCIAL
STATEMENTS
Principal activities
The principal activities of the Malaysian Communications and Multimedia Commission (“Commission”) are to implement and to enforce the provisions of the communications and multimedia laws as stipulated in the Communications and Multimedia Act (CMA) 1998 and the Malaysian Communications and Multimedia Commission Act (MCMCA) 1998.
The address of the principal place of business is as follows:
Principal place of business 63000 Cyberjaya
Selangor Darul Ehsan
The financial statements were approved by the Commission’s Members on 21 May 2015.
1. Basis of preparation
(a) Statement of compliance
The financial statements of the Commission have been prepared in accordance with Malaysian Financial Reporting Standards (“MFRS”) and International Financial Reporting Standards.
The following are accounting standards, amendments and interpretations that have been issued by the Malaysian Accounting Standards Board (“MASB”) but have not been adopted by the Commission:
MFRSs, Interpretations and amendments effective for annual periods beginning on or after 1 July 2014
• Amendments to MFRS 1, First-time adoption of Malaysian Financial Reporting Standards (Annual Improvements 2011-2013 Cycle)
• Amendments to MFRS 2, Share-based Payment (Annual Improvements 2010-2012 Cycle)
• Amendments to MFRS 3, Business Combinations (Annual Improvements 2010-2012 and 2011-2013 Cycles)
• Amendments to MFRS 8, Operating Segments (Annual Improvements 2010-2012 Cycle)
• Amendments to MFRS 13, Fair Value Measurement (Annual Improvements 2010- 2012 and 2011-2013 Cycles)
MALAYSIAN COMMUNICATIONS AND MULTIMEDIA COMMISSION NOTES TO THE FINANCIAL
STATEMENTS
(Continued) 1. Basis of preparation (continued)(a) Statement of compliance (continued)
MFRS, Interpretations and amendments effective for annual periods beginning on or after 1 July 2014 (continued)
• Amendments to MFRS 116, Property, Plant and Equipment (Annual Improvements 2010-2012 Cycle)
• Amendments to MFRS 119, Employee Benefits – Defined Benefit Plans: Employee Contributions
• Amendments to MFRS 124, Related Party Disclosures (Annual Improvements 2010- 2012 Cycle)
• Amendments to MFRS 138, Intangible Assets (Annual Improvements 2010-2012 Cycle)
• Amendments to MFRS 140, Investment Property (Annual Improvements 2011-2013 Cycle)
MFRS, Interpretations and amendments effective for annual periods beginning on or after 1 January 2016
• Amendments to MFRS 5, Non-current Assets Held for Sale and Discontinued Operations (Annual Improvements 2012-2014 Cycle)
• Amendments to MFRS 7, Financial Instruments: Disclosures (Annual Improvements 2012-2014 Cycle)
• Amendments to MFRS 10, Consolidated Financial Statements and MFRS 128, Investments in Associates and Joint Ventures – Sales or Asset Contributions between an Investor and its Associate or Joint Venture
• Amendments to MFRS 11, Joint Arrangements – Accounting for Acquisitions of Interests in Joint Operations
• MFRS 14, Regulatory Deferral Accounts
• Amendments to MFRS 116, Property, Plant and Equipment and MFRS 138, Intangible Assets – Clarification of Acceptable Methods of Depreciation and Amortisation
• Amendments to MFRS 116, Property, Plant and Equipment and MFRS 141, Agriculture – Agriculture: Bearer Plants
• Amendments to MFRS 119, Employee Benefits (Annual Improvements 2012-2014 Cycle)
• Amendments to MFRS 127, Separate Financial Statements – Method in Separate Financial Statements
• Amendments to MFRS 134, Interim Financial Reporting (Annual Improvements 2012-2014 Cycle)
MFRS, Interpretations and amendments effective for annual periods beginning on or after 1 January 2017
• MFRS 15, Revenue from Contracts with Customers
MFRS, Interpretations and amendments effective for annual periods beginning on or after 1 January 2018
MALAYSIAN COMMUNICATIONS AND MULTIMEDIA COMMISSION NOTES TO THE FINANCIAL
STATEMENTS
(Continued) 1. Basis of preparation (continued)(a) Statement of compliance (continued)
The Commission plans to apply the abovementioned standards, amendments and interpretations:
• from the annual period beginning on 1 January 2015 for those standards,
amendments and interpretations that are effective for annual periods beginning on or after 1 July 2014, except for Amendments to MFRS 2, Amendments to MFRS 3, Amendments to MFRS 8 and Amendments to MFRS 140 which are not applicable to the Commission.
• from the annual period beginning on 1 January 2016 for those standards, amendments and interpretations that are effective for annual periods beginning on or after 1 January 2016, except for Amendments to MFRS 10, Amendments to MFRS 11, Amendments to MFRS 127 and Amendments to MFRS 134 which are not applicable to the Commission.
• from the annual period beginning on 1 January 2017 for those standards,
amendments and interpretations that are effective for annual periods beginning on or after 1 January 2017.
• From the annual period beginning on 1 January 2018 for those standards,
amendments and interpretations that are effective for annual periods beginning on or after 1 January 2018.
The initial application of the abovementioned accounting standards, amendments and interpretations are not expected to have any material financial impact to the current period and prior period financial statements of the Commission except as mentioned below:
MFRS 15, Revenue from Contracts with Customers
MFRS 15 replaces the guidance in MFRS 111, Construction Contract, MFRS 118, Revenue, Interpretations IC 13, Customer Loyalty Programme, Interpretation IC 15, Agreements for the Construction of Real Estate, Interpretation IC 18, Transfers of Assets from Customers, and Interpretation IC 131, Revenue – Barter Transactions Involving
Advertising Services. After the adoption of MFRS 15, it is expected that the timing of revenue recognition might be different as compared with the current practices.
The adoption of MFRS 15 will result in a change in accounting policy. The Commission is currently assessing the financial impact of adopting MFRS 15.
MALAYSIAN COMMUNICATIONS AND MULTIMEDIA COMMISSION NOTES TO THE FINANCIAL
STATEMENTS
(Continued) 1. Basis of preparation (continued)(a) Statement of compliance (continued) MFRS 9, Financial Instruments
MFRS 9 replaces the guidance in MFRS 139, Financial Instruments: Recognition and Measurement on classification and measurement of financial assets and financial liabilities, and value protection accounting.
The Commission is currently assessing the financial impact of adopting MFRS 9.
(b) Basis of measurement
The financial statements have been prepared on the historical cost basis except as mentioned in Note 2.
(c) Functional and presentation currency
The financial statements are presented in Ringgit Malaysia (“RM”), which is the Commission’s functional currency. All financial information presented in RM has been rounded to the nearest thousand, unless otherwise stated.
(d) Use of estimates and judgements
The preparation of financial statements in compliance with the Malaysian Financial Reporting Standards (“MFRS”) requires the 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 on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is 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 as disclosed in Note 2(e)(i).
MALAYSIAN COMMUNICATIONS AND MULTIMEDIA COMMISSION NOTES TO THE FINANCIAL
STATEMENTS
(Continued) 2. Significant accounting policiesThe accounting policies set out below have been applied consistently to the periods presented in the financial statements, unless otherwise mentioned.
(a) Financial instruments
(i) Initial recognition and measurement
A financial asset or a financial liability is recognised in the statement of financial position when, and only when, the Commission becomes a party to the contractual provisions of the instrument.
A financial instrument is recognised initially, at its fair value added, transaction costs that are directly attributable to the acquisition or issuance of the financial instrument.
(ii) Financial instrument categories and subsequent measurement The Commission categorises financial instruments as follows:
Financial assets Loans and receivables
Loans and receivables category comprises unquoted debt instrument in an active market.
Financial assets are categorised as loans and receivables subsequently measured at amortised cost using the effective interest method.
All financial assets are subject to review of impairment (see Note 2(e)(i)).
Financial liabilities
All financial liabilities are subsequently measured at amortised cost using the effective interest method.
(iii) Derecognition
A financial asset or part of it is derecognised when, and only when, the contractual rights to the cash flows from the financial asset expire or the financial asset is transferred to another party without retaining control or substantially all risks and rewards of the asset. On derecognition of a financial asset, the difference between the carrying amount and the sum of the consideration received (including any new asset obtained less any new liability assumed) and any cumulative gain or loss that had been recognised in equity is recognised in the statement of income and expenditure.
MALAYSIAN COMMUNICATIONS AND MULTIMEDIA COMMISSION NOTES TO THE FINANCIAL
STATEMENTS
(Continued)2. Significant accounting policies (continued) (a) Financial instruments (continued) (iii) Derecognition (continued)
A financial liability or part of it is derecognised when, and only when, the obligation specified in the contract is discharged or cancelled or expires. On derecognition of a financial liability, the difference between the carrying amount amortised or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in the statement of income and expenditure.
(b) Property and equipment
(i) Recognition and measurement
Items of property and equipment are measured at cost less any accumulated depreciation and any accumulated impairment losses.
Cost includes expenditures that are directly attributable to the acquisition of the asset and any other costs directly attributable to bringing the asset to working condition for its intended use, and the costs of dismantling and removing the items and restoring the site on which they are located. The cost of self-constructed assets would include direct costs such as materials and labour.
Purchased software that is integral to the functionality of the related equipment is capitalised as part of the equipment.
When significant parts of an item of property and equipment have different useful lives, they are accounted for as separate items (major components) of property and equipment.
The gain or loss on disposal of an item of property and equipment is determined by comparing the proceeds from the disposal to the carrying amount of property and equipment recognised in the statement of income and expenditure.
(ii) Subsequent costs
The cost of replacing part of an item of property and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Commission and its cost can be measured reliably. The carrying amount of the replaced part is derecognised in the statement of income and expenditure. The costs of day-to-day servicing of property and equipment are recognised in the statement of income and expenditure as incurred.
MALAYSIAN COMMUNICATIONS AND MULTIMEDIA COMMISSION NOTES TO THE FINANCIAL
STATEMENTS
(Continued)2. Significant accounting policies (continued) (b) Property and equipment (continued)
(iii) Depreciation
Depreciation is based on the cost of an asset less its residual value. Significant components of individual assets are assessed, and if a component has a useful life that is different from the remainder of that asset, then that component is depreciated separately.
Depreciation is recognised in the statement of income and expenditure on a
straight-line basis over the estimated useful lives of each part of an item of property and equipment. Freehold land is not depreciated. Capital work-in-progress are not depreciated until the assets are ready for their intended use.
The estimated useful lives for the current and comparative periods are as follows:
• Office and communication equipment 6 – 7 years
• Computer equipment 3 – 5 years
• Furniture and fittings 6 – 7 years
• Motor vehicle 5 years
• Building 50 years
Depreciation methods, useful lives and residual values are reviewed at the end of the reporting period and adjusted as appropriate.
(c) Fees and other receivables
Fees and other receivables are categorised and measured as loans and receivables in accordance with Note 2(a)(ii).
(d) Cash and cash equivalents
Cash and cash equivalents consist of cash on hand, balances and deposits with licensed banks and measured as loans and receivables in accordance with Note 2(a) (ii).