203 / 232
Notes to the
Financial Statements
As at 31 March 2019
44. Explanation of transition of MFRSs (CONT’D.)
The significant accounting policies adopted in preparing the financial statements are consistent with those of
the audited financial statement for the year ended 31 March 2018, except as discussed below:
(a) Transition from FRSs to MFRSs Framework
(i) Property, plant and equipment
Under the FRS accounting framework, the Group and the Company elected to account for the
freehold land, leasehold land and buildings included within property, plant and equipment using
the revaluation model. The Group and the Company have elected to use the previous revaluation as
deemed cost under MFRS. Accordingly, the carrying amounts of these property, plant and equipment
have not been restated and the previous revaluation reserve of the Group and the Company were
reclassified to retained earnings.
(ii) Foreign currency translation difference
Under FRSs, the Group recognised foreign currency translation differences in other comprehensive
income and accumulated the amount in the foreign currency translation deficit in equity.
Upon transition to MFRSs, the Group has elected to deem all foreign currency translation differences
that arose prior to the date of transition in respect of all foreign operations to be nil at the date of
transition.
(b) Adoption of MFRS 9 Financial Instruments
MFRS 9 replaces MFRS 139 and amends the previous requirements in three main area (i) classification
and measurement of financial assets; (ii) impairment of financial assets, mainly by introducing a forward
looking expected loss impairment model and (iii) hedge accounting including removing some of the
restrictions on applying hedge accounting in MFRS 139. With the exeption of hedge accounting, the Group
has applied MFRS 9 retrospectively, with the initial application date of 1 April 2018 and adjusting the
comparative information for the period beginning 1 April 2017.
financial
statements
199