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2.
Significant accounting policies (cont’d.)
2.2 Standards issued but not yet effective (cont’d.)
Effective for
annual periods
beginning on
Description
or after
Annual Improvements to MFRS Standards 2015–2017 Cycle
1 January 2019
MFRS 119 Plan Amendment, Curtailment or Settlement (Amendments to MFRS 119)
1 January 2019
IC Interpretation 23 Uncertainty over Income Tax Treatments
1 January 2019
MFRS 17 Insurance Contracts
1 January 2021
Amendments to MFRS 10 and MFRS 128: Sale or Contribution of Assets between an Investor
and its Associate or Joint Venture
Deferred
The directors of the Company expect that the adoption of the above standards and interpretations will have no material impact
on the financial statements in the period of initial application.
2.3 Summary of significant accounting policies
(a) Functional and presentation currency
The financial statements are measured using the currency of the primary economic environment in which the Company
operates ("the functional currency"). The financial statements are presented in Ringgit Malaysia ("RM"), which is the
Company's functional currency.
(b) Cash and cash equivalents
For the purposes of the statement of cash flows, cash and cash equivalents include cash on hand.
(c) Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all
of its liabilities. Ordinary shares are equity instruments. The transaction costs of an equity transaction are accounted for
as a deduction from equity, net of tax. Equity transaction costs comprise only those incremental external costs directly
attributable to the equity transaction which would otherwise have been avoided.
(d) Financial liabilities
Financial liabilities are classified according to the substance of the contractual arrangements entered into and the
definitions of a financial liability.
Financial liabilities are recognised in the statement of financial position when, and only when, the Company becomes a
party to the contractual provisions of the financial instrument. Financial liabilities are classified as either financial liabilities
at fair value through profit or loss or other financial liabilities. The Company determines the classification of its financial
liabilities at initial recognition.
Other financial liabilities are recognised initially at fair value plus directly attributable transaction costs and subsequently
measured at amortised cost using the effective interest method.
A financial liability is derecognised when the obligation under the liability is extinguished and the resulting gains or losses
are recognised in profit and loss.
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AirAsia Group Berhad
REPORTS AND FINANCIAL STATEMENTS
219