TAN CHONG MOTOR HOLDINGS BERHAD
Annual Report 2014
54
NOTES TO THE FINANCIAL STATEMENTS
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 the
classification and measurement of financial assets and financial liabilities, and on hedge accounting.
The Group is currently assessing the financial impact that may arise from the adoption of MFRS 9.
(b) Basis of measurement
The financial statements have been prepared on the historical cost basis other than those disclosed in the notes
to the financial statements.
(c) Functional and presentation currency
These financial statements are presented in Ringgit Malaysia (RM), which is the Company’s functional currency. All
financial information is presented in RM and has been rounded to the nearest thousand, unless otherwise stated.
(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 other than those disclosed in the
following notes:
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