QL Resources Berhad (428915-X)
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1. Basis of preparation (Cont’d)
(a) Statement of compliance (Cont’d)
The Group and the Company plan to apply the abovementioned accounting standards, amendments and
interpretations:
• from the annual period beginning on 1 April 2016 for those accounting standards, amendments or
interpretations that are effective for annual periods beginning on or after 1 January 2016, except for FRS 14
and Amendments to FRS 11 which are not applicable to the Group and the Company, and
• from the annual period beginning on 1 April 2017 for those accounting standards, amendments or
interpretations that are effective for annual periods beginning on or after 1 January 2017.
The initial application of the accounting standards, amendments and interpretations are not expected to have any
material financial impacts to the current period and prior period financial statements of the Group and the Company.
The Group and the Company falls within the scope of MFRS 141, Agriculture. Therefore, the Group and the
Company is currently exempted from adopting the Malaysian Financial Reporting Standards (“MFRS”) and is
referred to as a “Transitioning Entity”.
Being Transitioning Entity, the Group and the Company will adopt the MFRS issued by MASB and International
Financial Reporting Standard (“IFRS”) and present its first set of MFRS financial statements for annual period
beginning on 1 April 2018. As a result, the Group and the Company will not be adopting the above FRSs,
interpretations and amendments effective for annual periods beginning on or after 1 January 2018.
(b) Basis of measurement
These financial statements have been prepared on the historical cost basis other than as disclosed in Note 2.
(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 FRS 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:
● Note 3 - measurement of the residual value and useful lives
● Note 6 - measurement of the recoverable amounts of cash-generating units
● Note 7 - valuation of biological assets
● Note 12 - valuation of receivables
● Note 13 - valuation of inventories
● Note 19 - employee benefits
Notes to the Financial Statements
(Cont’d.)
