Annual Report 2020

2. Summary of significant accounting policies ( cont'd.) 2.2 Standards, amendments to published standards and interpretations that are effective The Group and the Company have applied the following amendments for the first time for the financial year beginning on 1 January 2020: - Amendments to MFRS 3 Business Combinations : Definition of a Business - A mendments to MFRS 101 Presentation of Financial Statements and MFRS 108 Accounting Policies, Changes in Accounting Estimates and Errors : Definition of Material - Amendments to MFRS 9 Financial Instruments , MFRS 139 Financial Instruments : Recognition and Measurement and MFRS 7 Financial Instruments: Disclosures: Interest Rate Benchmark Reform - Amendments to References to the Conceptual Framework in MFRSs The adoption of these amendments did not have any material impact on the current period or any prior period except for the following: The Group has also early adopted the Amendment to MFRS 16 Leases: COVID-19 Related Rent Concessions issued by Malaysian Accounting Standards Board ("MASB") in June 2020, in response to the COVID-19 pandemic. The amendment is effective for annual periods beginning on or after 1 June 2020. Under MFRS 16, rent concessions often meet the definition of a lease modification, unless they were envisaged in the original lease agreement. In response to the COVID-19 pandemic, MASB has issued Amendment to MFRS 16, Leases (COVID-19 Related Rent Concessions) that introduces an optional practical expedient to simplify how lessees account for rent concessions as a direct consequence of the COVID-19 pandemic. The Group has applied the optional practical expedient by electing not to assess whether a COVID-19 related rent concession from a lessor is a lease modification. As a result, the Group has treated the rent concessions (deferral of lease payments) as if the lease is unchanged and there is no impact to the financial statements. 2.3 Standards issued but not yet effective The standards and interpretations that are issued but not yet effective up to the date of issuance of the Group's and of the Company's financial statements are disclosed below. The Group and the Company intend to adopt these standards, if applicable, when they become effective. Description Effective for annual periods beginning on or after Amendments to MFRS 9 Financial Instruments , MFRS 139 MFRS 7 Financial Instruments: Disclosures, MFRS 4 Insurance Contracts and MFRS 16 Leases: Interest Rate Benchmark Reform-Phase 2 1 January 2021 Amendment to MFRS 16 Leases: COVID-19-Related Rent Concessions beyond 30 June 2021 1 April 2021 Annual Improvements to MFRS Standards 2018-2020 1 January 2022 Amendments to MFRS 3 Business Combinations : Reference to the Conceptual Framework 1 January 2022 Amendments to MFRS 116 Property, Plant and Equipment : Property, Plant and Equipment – Proceeds before Intended Use 1 January 2022 Amendments to MFRS 137 Provisions, Contingent Liabilities and Contingent Assets : Onerous Contract – Cost of Fulfilling a Contract 1 January 2022 MFRS 17 Insurance Contracts 1 January 2023 Notes to the Financial Statements For the financial year ended 31December 2020 188 AIRASIA GROUP BERHAD