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3. Changes in Accounting Policies (cont’d.)
(b) Standards issued but not yet effective (cont’d.)
MFRS 9 Financial Instruments
MFRS 9 reflects the first phase of work on the replacement of MFRS 139 and applies to classification and measurement
of financial assets and financial liabilities as defined in MFRS 139. The standard was initially effective for annual periods
beginning on or after 1 January 2013, but Amendments to MFRS 9: Mandatory Effective Date of MFRS 9 and Transition
Disclosures, issued in March 2012, moved the mandatory effective date to 1 January 2015. Subsequently, on 14 February
2014, it was announced that the new effective date will be decided when the project is closer to completion. The adoption
of the first phase of MFRS 9 will have an effect on the classification and measurement of the Group’s financial assets, but
will not have an impact on classification and measurements of the Group’s financial liabilities. The Group will quantify the
effect in conjunction with the other phases, when the final standard including all phases is issued.
4. Significant Accounting Estimates and Judgements and Key Sources of Estimation Uncertainty
There were no significant judgements made in applying the accounting policies of the Group which may have significant effects
on the amounts recognised in the financial statements.
Management makes key assumptions concerning the future and other key sources of estimation uncertainty at the reporting
date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the
next financial year.
The following represents a summary of the critical accounting estimates and the associated key sources of estimation
uncertainty:
(a) Useful lives of property, plant and equipment and intangible assets
Depreciation and amortisation are based on management’s estimates of the future estimated average useful lives and
residual values of property, plant and equipment and intangible assets. Estimates may change due to technological
developments, modernisation initiatives, expected level of usage, competition, market conditions and other factors, which
could potentially impact the estimated average useful lives and the residual values of these assets. This may result in
future changes in the estimated useful lives and in the depreciation or amortisation expenses. A 5.0% difference in the
expected useful lives of these assets from management’s estimates would result in approximately 2.3% (2012: 4.9%)
variance in the Group’s profit for the year.
(b) Impairment of non-financial assets
The Group assesses whether there are any indicators of impairment on all non-financial assets at each reporting date. Non-
financial assets are tested for impairment when indications of potential impairment exist. Indicators of impairment which
could trigger an impairment review include evidence of obsolescence or physical damage, significant fall in market values,
significant underperformance relative to historical or projected future operating results, significant changes in the use of
assets or the strategy of the business, significant adverse industry or economic changes.
NOTES TO THE FINANCIAL STATEMENTS
31 December 2013
DiGi.COM BERHAD (425190-X)
ANNUAL REPORT 2013
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