2. SUMMARY OF MATERIAL ACCOUNTING POLICIES (CONTINUED) 2.1 Basis of preparation (Continued) SFRS(I)s and SFRS(I)s INT issued but not yet effective: At the date of authorisation of these financial statements, the following SFRS(I)s and SFRS(I)s INT that are relevant to the Group were issued but not yet effective: SFRS (I)s Title Effective date (annual periods beginning on or after) SFRS(I) 1-1 Amendments to SFRS(I) 1-1: Classification of liabilities as Current or Non-current 1 January 2024 Various Amendments to SFRS(I) 1-1: Non-current Liabilities with Covenants 1 January 2024 SFRS(I) 16 Amendments to SFRS(I) 16: Lease Liability in a Sale and Leaseback 1 January 2024 SFRS(I) 1-7, SFRS(I) 7 Amendments to SFRS(I) 1-7 and SFRS(I) 7: Supplier Finance Arrangements 1 January 2024 SFRS(I) 1-21, SFRS(I) 1 Amendments to SFRS(I) 1-21: Lack of Exchangeability 1 January 2025 SFRS(I) 9, SFRS(I) 7 Amendments to SFRS(I) 9 and SFRS(I) 7: Amendments to the Classification and Measurement of Financial Instruments 1 January 2026 Various Annual Improvements to SFRS(I)s – Volume 11 1 January 2026 SFRS(I) 9, SFRS(I) 7 Amendments to SFRS(I) 9 and SFRS(I) 7: Contracts Referencing Nature-dependent Electricity 1 January 2026 SFRS(I) 18 Presentation and Disclosure in Financial Statements 1 January 2027 SFRS(I) 19 Subsidiaries without Public Accountability: Disclosures 1 January 2027 SFRS(I) 10, SFRS(I) 1-28 Amendments to SFRS(I) 10 and SFRS(I) 1-28: Sale or Contribution of Assets between an Investor and its Associate or Joint Venture To be determined Consequential amendments were also made to various standards as a result of these new/revised standards. The Group and the Company do not intend to early adopt any of the above new/revised standards, interpretations and amendments to the existing standards. Management anticipates that the adoption of the aforementioned revised/new standards, with the exception of SFRS(I) 18 Presentation and Disclosure in Financial Statements (“SFRS (I) 18”), will not have a material impact on the financial statements of the Company in the period of their initial adoption. SFRS(I) 18, effective for annual periods beginning on or after 1 January 2027, replaces SFRS(I) 1 – 1 Presentation of Financial Statements (“SFRS (I) 1-1”) and introduces new requirements for presentation and disclosure in financial statements. SFRS(I) 18 mandates a new structure for the statement of profit or loss and also requires disclosure of newly defined management-defined performance measures, subtotals of income and expenses, and includes new requirements for aggregation and disaggregation of financial information based on the identified “roles” of the primary financial statements and the notes. As a consequential result of SFRS(I) 18 requirements, all entities are required to use the operating profit subtotal, instead of profit or loss, as the starting point for presenting operating cash flows under the indirect method. The classification of cash flows from dividends and interests in either operating, investing and financing cash flows is also fixed. SFRS(I) 18 will apply retrospectively. The Group is still in the process of assessing the corresponding impact on the primary financial statements and notes to the financial statements. 2.2 Basis of consolidation The financial statements of the Group comprise the financial statements of the Company and its subsidiaries. Subsidiaries are entities (including structured entities) (i) over which the Group has power and the Group is (ii) able to use such power to (iii) affect its exposure, or rights, to variable returns from then through its involvement with them. The Group reassesses whether it controls the subsidiaries if facts and circumstances indicate that there are changes to one or more of the three elements of control. 68 KEONG HONG HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2024
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