Page 86 - HRC_AR2020

84 I 2020 ANNUAL REPORT I financial reports

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020 (CONTINuED)

2 sUMMarY of siGnificant accoUntinG policies (continued)
2.1 Basis of preparation (continued)
(a) standards, amendments to published standards and interpretations to existing standards that are
effective to the company
The amendments and improvements to published standards that are effective for the Company’s financial year
beginning on 1 January 2020 are as follows:

• The Conceptual Framework for Financial Reporting (Revised 2018)
• Amendments to MFRS 101 and MFRS 108 – Definition of Material
• Amendments to MFRS 9, 139 & 7 – Interest Rate Benchmark Reform
• IC Interpretation 23 – Uncertainty over Income Tax Treatments
The adoption of the above standards, amendments to published standards and interpretations to existing
standards did not have any material impact on the financial performance or position of the Company.
(b) amendments to published standards that are applicable to the company but not yet effective
The Company will apply the new amendments to published standards in the financial year beginning on
1 January 2022:
• Amendments to MFRS 116 – Proceeds before Intended Use
• Amendments to MFRS 137 – Onerous Contracts: Cost of Fulfilling a Contract
• Annual improvements to MFRS 9 – Fees in the 10% test for Derecognition of Financial Liabilities
The financial impact that may arise from the adoption of the above amendments to published standards is
being assessed by the Company.

The Company will apply the new amendments to published standards and interpretations to existing standards in
the financial year beginning on 1 January 2023:
• Amendments to MFRS 101 – Classification of Liabilities as Current or Non-current
• Amendments to MFRS 101 – Disclosure of Accounting Policies
• Amendments to MFRS Practice Statement 2 “Making Material Judgements” - Disclosure of Accounting Policies
• Amendments to MFRS 108 – Definition of Accounting Estimates
The financial impact that may arise from the adoption of the above amendments to published standards is
being assessed by the Company.
2.2 foreiGn cUrrencies
The basis of accounting for foreign currency transactions is as follows:
(a) functional and presentation currency

A company’s functional currency should reflect the underlying transactions, events and conditions that are
relevant to it which includes the currency of the primary economic environment in which a company generates
and expends cash, the currency in which funds from financing activities are generated and the currency in which
receipts from operating activities are usually retained.
The financial statements are presented in Ringgit Malaysia.