The interpretation addresses the accounting for income taxes when tax treatments involve uncertainty that affects the application of MFRS 112 and does not apply to taxes or levies outside the scope of MFRS 112, nor does it specifically include requirements relating to interest and penalties associated with uncertain tax treatments. The interpretation specifically addresses the following: - whether an entity considers uncertain tax treatments separately; - the assumptions an entity makes about the estimation of tax treatments by taxation authorities; - how an entity determines taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates; and - how an entity considers changes in facts and circumstances. An entity must determine whether to consider each uncertain tax treatment separately or together with one or more uncertain tax treatments. The approach that better predicts the resolution of the uncertainty should be followed. The Group and the Company will apply the interpretation from its effective date. Since the Group operates in a complex multinational tax environment, applying the interpretation may affect its consolidated financial statements and the required disclosures. In addition, the Group may need to establish processes and procedures to obtain information that is necessary to apply the interpretation on a timely basis. Amendments to references to the Conceptual Framework in MFRS Standard On 30 April 2018, the Malaysian Accounting Standards Board (MASB) has issued a revised Conceptual Framework for Financial Reporting and amendments to the below fourteen Standards under the Malaysian Financial Reporting Standards Framework: (1) Amendments to MFRS 2 Share-Based Payment (2) Amendment to MFRS 3 Business Combinations (3) Amendments to MFRS 6 Exploration for and Evaluation of Mineral Resources (4) Amendment to MFRS 14 Regulatory Deferral Accounts (5) Amendments to MFRS 101 Presentation of Financial Statements (6) Amendments to MFRS 108 Accounting Policies, Changes in Accounting Estimates and Errors (7) Amendments to MFRS 134 Interim Financial Reporting (8) Amendment to MFRS 137 Provisions, Contingent Liabilities and Contingent Assets (9) Amendment to MFRS 138 Intangible Assets (10) Amendment to IC Interpretation 12 Service Concession Arrangements (11) Amendment to IC Interpretation 19 Extinguishing Financial Liabilities with Equity Instruments (12) Amendment to IC Interpretation 20 Stripping Costs in the Production Phase of a Surface Mine (13) Amendment to IC Interpretation 22 Foreign Currency Transactions and Advance Consideration (14) Amendments to IC Interpretation 132 Intangible Assets—Web Site Costs The changes to the chapters on the objective of financial reporting and qualitative characteristics of useful financial information are limited, but with improved wording to give more prominence to the importance of providing information needed to assess management’s stewardship of the entity’s economic resources.
2. Summary of significant accounting policies (cont’d) 2.3
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- Spring '15
- Hup Seng Industries Berhad