Airasia 1. MFRS 15, Revenue From Contracts With Customer

AIRASIA
1. MFRS 15, Revenue from contracts with customer

The Group deferred revenue from processing fees and change fees upon flown dates which
were previously accounted for at transaction dates. Further, revenue associated with the sale
of points to merchant partners under the customer loyalty programme is recognised when the
sale is completed instead of upon redemption of points by the members.
This resulted in a net decrease in opening retained earnings at 1 January 2018 of RM11.2
million.
2. MFRS 9, Financial Instruments

The Group is recognised at fair value at the acquisition date. Subsequent changes to the fair
value of the contingent consideration that is deemed to be an asset or liability is recognised in
accordance with MFRS 9 either in profit or loss or as a change to other comprehensive
income. Contingent consideration that is classified as equity is not re-measured, and its
subsequent settlement is accounted for within equity.
As shown at below Note 2.2, the group had classify their financial assets in the following
categories; fair value through profit or loss, fair value through other comprehensive income
and amortised cost.
3. MFRS 16, Leases
The Group has a number of operating leases for assets which includes aircraft, property and
other equipments. MFRS 16 adopted by the Group with using the modified retrospective
transition approach which measures the lease liabilities based on the present value of future
lease payments calculated using the incremental borrowing rate and exchange rate at date of
transition. Lease payments would be split into principal and interest payments, using the
effective interest method.
After adoption of MFRS 16, PPE have adjusted from 2,851,917 to 12,513,690.
AEON
1. MFRS 16, Leases
The Company apply MFRS 16 by using modified retrospective approach. The Company
chooses to measure the right-of-use asset as if MFRS 16 had always been applied with no
restatement of comparative information.
Based on the information,the Company estimates that it will recognise lease liabilities of
RM2,195,000,000 ( Two billion one hundred ninty-five billion) with a corresponding right-
of-use assets of RM1,742,000,000 and deferred tax assets of RM109,000,000 (one hundred
nine million), recognising the difference in retained earnings.
2. MFRS 9, Financial Instrument
The Company has not restated comparative information for prior periods with respect to
classification and measurement including impairment requirements. Differences in the
carrying amounts of financial assets and financial liabilities resulting from the adoption of
MFRS 9 are recognised in retained earnings and reserves as at 1 January 2018.
As the table shown below, the company have different amount of financial assets with
207,457 and financial liabilities with -2,254,818.
3. MFRS 15, Revenue from contracts with customer

The Company generally applied the requirements of these accounting standards
retrospectively with practical expedients and transitional exemptions as allowed by the
standards. Practical expedients as permitted by the standard have been adopted for
comparatives, the Company does not disclose the amount of consideration allocated to the
remaining performance obligations and an explanation of when the Company expects to
recognise revenue which the statement of financial position had shown that after MFRS 15
adjustment by contract assets and contract liabilities.
MAXIS
1. MFRS 9 Financial Instruments
The Group’s management has assessed which business models apply to the financial assets
held by the Group and has classified its financial instruments into the appropriate MFRS 9
categories. There are no changes to the classification of financial instruments from the
assessment except for the reclassification of equity investments from available-for-sale
(“AFS”) financial assets to financial assets at FVOCI.
2. MFRS 15 “Revenue from Contracts with Customers

The group adoption MFRS 15 in 2 terms :
(i) Sale of device as part of bundled telecommunication service package
MFRS 15 requires devices which the Group promises to transfer as part of a bundled package
with mobile telecommunication services to be considered distinct and thus accounted for as a
separate performance obligation.When the Group sells devices, revenue from the sale of
device is recognised on a gross basis and payment to the supplier for device cost is recorded
as a direct cost.
(ii) Costs incurred to obtain or fulfil a contract
The Group capitalises sales commissions as costs to obtain a contract with a customer when
they are incremental and expected to be recovered over more than a year. These costs are
disclosed as contract cost assets and are amortised consistently with the transfer of the good
or service to the customer.
3. MFRS 16, Leases

The Group apply the standard from its mandatory and intends to apply the simplified
transition approach and will not restate comparative amounts for the year prior to first
adoption.
Right-of-use assets will be measured on transition as if the new rules had always been
applied. Arising from the above, the Group estimates the below impact to its consolidated
financial statements with
(i) Movement in the following balances on 1 January 2019:
• increase in lease liabilities by approximately RM1,120 million; and
• decrease in retained earnings by approximately RM40 million.
(ii) Right-of-use assets of approximately RM1,050 million will be presented in the statements
of financial position.
On the statements of profit or loss, EBITDA as defined in belowis expected to improve as
operating lease rentals which were previously recorded as expenses within EBITDA, will be
replaced by interest expense on the lease liabilities (included within finance cost) and
amortisation of the right-of-use assets.

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AIRASIA

1. MFRS 15, Revenue from contracts with customer

2. MFRS 9, Financial Instruments

3. MFRS 15, Revenue from contracts with customer

2. MFRS 15 “Revenue from Contracts with Customers

3. MFRS 16, Leases

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