Page 103 - HRC_Annual_Report_2023

Financial Reports &
Governance HENGYUAN REFINING COMPANY BERHAD l ANNUAL REPORT 2023 101
Other Information

NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023

2 SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION (continued)
2.1 BASIS OF PREPARATION (continued)
(a) Standards, amendments to published standards and interpretations to existing standards that are
effective to the Company
The Company has applied the following amendments to published standards for the first time for the financial
year beginning on 1 January 2023:
• Amendments to MFRS 101 – Disclosure of Accounting Policies
• Amendments to MFRS Practice Statement 2 “Making Material Judgements” – Disclosure of Accounting Policies
• Amendments to MFRS 108 – Definition of Accounting Estimates
• Amendments to MFRS 112 – Deferred Tax related to Assets and Liabilities arising from a Single Transaction and
International Tax Reform – Pillar Two Model Rules
The adoption of the above amendments to published standards did not have any material impact on the financial
performance or position of the Company as disclosed below.

(b) Amendments to published standards that are applicable to the Company but not yet effective
The Company will apply the new amendments to published standards in the financial year beginning on 1 January
2024:

• Amendments to MFRS 101 – Non-current Liabilities with Covenants and Classification of Liabilities as Current or
Non-current
• Amendments to MFRS 16 – Lease Liability in a Sale and Leaseback
• Amendments to MFRS 107 and MFRS 7 – Supplier Finance Arrangements
The financial impact that may arise from the adoption of the above amendments to published standards is being
assessed by the Company.
The Company will apply the new amendments to published standards and interpretations to existing standards in
the financial year beginning on 1 January 2025:

• Amendments to MFRS 121 – Lack of Exchangeability
The financial impact that may arise from the adoption of the above amendments to published standards is being
assessed by the Company.
2.2 FOREIGN CURRENCIES

The basis of accounting for foreign currency transactions is as follows:
(a) Functional and presentation currency
A company’s functional currency should reflect the underlying transactions, events and conditions that are relevant
to it which includes the currency of the primary economic environment in which a company generates and
expends cash, the currency in which funds from financing activities are generated and the currency in which receipts
from operating activities are usually retained.

The financial statements are presented in Ringgit Malaysia (“RM”).