KENANGA ANNUAL REPORT 2017

2. CHANGES IN ACCOUNTING POLICIES AND REGULATORY REQUIREMENT (CONT’D.) 2.2 Standards issued but not yet effective (cont’d.) Description Effective for annual periods beginning on or after MFRS 9: Financial Instruments 1 January 2018 MFRS 15: Revenue from Contracts with Customers 1 January 2018 Clarification to MFRS 15: Revenue from Contracts with Customers 1 January 2018 Amendments to MFRS 2: Classification and Measurement of Share-based Payment Transactions 1 January 2018 Amendments to MFRS 1: First-time Adoption of Malaysian Financial Reporting Standards contained in the documents entitled “Annual Improvements to MFRS Standards 2014-2016 Cycle” 1 January 2018 Amendments to MFRS 128: Investment in Associates and Joint Venture contained in the documents “Annual Improvements to MFRS Standards 2014-2016 Cycle” 1 January 2018 Amendments to MFRS 4: Applying MFRS 9 Instruments with MFRS 4 Insurance Contracts Temporary exemption from MFRS 9 subject to certain criteria being met for annual periods beginning on or after 1 January 2018 Amendments to MFRS 140: Transfers of Investment Property 1 January 2018 IC Interpretation 22: Foreign Currency Transactions and Advance Consideration 1 January 2018 MFRS 16: Leases 1 January 2019 Amendments to MFRS 9: Prepayment Features with Negative Compensation 1 January 2019 Amendments to MFRS 128: Long-term interests in Associates and Joint Ventures 1 January 2019 IC Interpretation 23: Uncertainty Over Income Tax Treatments 1 January 2019 Amendments to MFRS 3: Business Combinations contained in the documents entitled “Annual Improvements to MFRS Standards 2015-2017 Cycle” 1 January 2019 Amendments to MFRS 11: Joint Arrangements contained in the documents entitled “Annual Improvements to MFRS Standards 2015-2017 Cycle” 1 January 2019 Amendments to MFRS 112: Income Tax Consequences of Payments on Financial Instruments Classified as Equity contained in the documents entitled “Annual Improvements to MFRS Standards 2015-2017 Cycle” 1 January 2019 Amendments to MFRS 123: Borrowing Costs Eligible for Capitalisation contained in the documents entitled “Annual Improvements to MFRS Standards 2015-2017 Cycle” 1 January 2019 MFRS 17: Insurance Contracts 1 January 2021 Amendments to MFRS 10 and MFRS 128: Sale or Contribution of Assets between an Investor and its Associate or Joint Venture To be announced by MASB The directors expect that the adoption of the above standards will have no material impact on the financial statements in the period of initial application except as discussed below: Kenanga Investment Bank Berhad 31 December 2017 98 notes to the financial statements