FGV Annual Report 2018

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 338 FGV HOLDINGS BERHAD EXAMINED OUR NUMBERS 62 FIRST TIME ADOPTION OF MFRS FRAMEWORK (CONTINUED) Transition from FRS to MFRS (continued) (i) MFRS 1 “ First time adoption of Malaysian Financial Reporting Standards ” ( “ MFRS 1 ” ) (continued) As provided in MFRS 1, the Group and the Company as first time adopters of MFRS have elected to apply the following exemptions on other MFRSs from a full retrospective application as explained below: • Business combinations MFRS 1 provides the option to apply MFRS 3 “ Business combinations ” prospectively for business combinations (including acquisition of interests in associates, joint ventures and joint operations that constitute businesses) that occurred from the transition date or from a designated date prior to the transition date. This provides relief from full retrospective application that would require restatement of all business combinations prior to the transition date or a designated date prior to the transition date. The Group elected to apply MFRS 3 prospectively to business combinations that occurred after 1 January 2017. Business combinations that occurred prior to 1 January 2017 have not been restated. The Group has also appliedMFRS 10 “ Consolidated financial statements ” from the same date. • Previous revaluation as deemed cost – Property, plant and equipment Under FRSs, valuation adjustments on certain plantation land and building were incorporated into the financial statements. The Group and Company elected to use the previous revaluation as deemed cost as at the date of revaluation. Accordingly, the carrying amounts of these plantation land and building have not been restated. • Previous FRS carrying amounts as deemed cost – Investment in subsidiaries, joint ventures and associates The Group and Company elected to use the previous FRS carrying amounts as deemed cost as at the date of transition. Accordingly, the carrying amounts of these investment in subsidiaries, joint ventures and associates have not been restated. • Revenue The Group has elected to apply the following practical expedients under MFRS 15: (i) No restatement of completed contracts that begin and end within the same annual reporting period; (ii) No restatement for completed contracts as at transition date; (iii) The use of transaction price at the date contract was completed for completed contracts in the comparative period with variable consideration; (iv) No restatement of contract modifications that occurred before transition date; (v) No disclosure is required on the amount of the transaction price allocated to the remaining performance obligations and an explanation of when the Group expects to recognise the amount as revenue for all reporting periods presented before the first MFRS reporting period, at 1 January 2018.