Annual Report 2019

FINANCIAL STATEMENTS 47. Reclassification The presentation and classification of items in the current year’s financial statements have been consistent with the previous financial year except for certain comparative amounts which have been reclassified to conform with the current year’s presentation: The effects arising from these reclassifications are as follows: As previously As stated Reclassification restated RM’000 RM’000 RM’000 Effects on statement of comprehensive income for the financial year ended 31 December 2018 Operating expenses User charges 1,576,018 (84,490) 1,491,528 Other operating expenses 779,486 84,490 863,976 This relates to reclassification of cargo belly costs of RM84.49 million from user charges to other operating expenses as these are non-flight related expenses pertaining to the provision of cargo services. As previously As stated Reclassification restated RM’000 RM’000 RM’000 Effects on statement of financial position as at 31 December 2018 Current liabilities Trade and other payables 2,680,025 (354,030) 2,325,995 Aircraft maintenance provisions and liabilities 168,041 354,030 522,071 Non-current liabilities Other payables 3,513,909 (3,116,963) 396,946 Aircraft maintenance provisions and liabilities 843,768 3,116,963 3,960,731 This relates to reclassification of aircraft maintenance payables and aircraft maintenance reserve fund of RM2,401 million and RM1,070 million, respectively from trade and other payables to aircraft maintenance provisions and liabilities as these are maintenance-related reserve fund for the overhaul of the major components of aircraft. 48. COVID-19 Pandemic The Group reported a net loss of RM283 million for the financial year ended 31 December 2019 and the current liabilities exceeded its current assets by RM1,843 million as at 31 December 2019. The spread of the COVID-19 pandemic after the year end has significantly affected the Group’s operations. Travel and border restrictions implemented by countries around the world, such as the Movement Control Order (MCO) implemented by the Malaysian government, Enhanced Community Quarantined (ECQ) in Philippines, Government Regulation No 21/2020 on large scale social distancing in Indonesia, have led to a significant fall in demand for air travel which impacted the Group’s financial performance and cash flows. These conditions indicate existence of material uncertainties that may cast significant doubt on the Group’s and the Company’s ability to continue as a going concern. AIRASIA GROUP BERHAD ANNUAL REPORT 2019 335