Registration No. 200301030845 (633265-K) - 30 - 2. Basis of Preparation (Cont’d) (a) Statement of compliance (Cont’d) Standards issued but not yet effective (Cont’d) MFRS 18 Presentation and Disclosure in Financial Statements (Cont’d) MFRS 18 additional requirements are as follows: (i) Statement of Profit or Loss and Other Comprehensive Income MFRS 18 introduces newly defined “operating profit or loss” and “profit or loss before financing and income tax” subtotal which are to be presented in the statement of profit or loss, while the net profit or loss remains unchanged. Statement of profit or loss to be presented in five categories: operating, investing, financing, income taxes and discontinued operations. (ii) Statement of Cash Flows The standard modifies the starting point for calculating cash flows from operations using the indirect method, shifting from “profit or loss” to “operating profit or loss”. It also provides guidance on classification of interest and dividend in statement of cash flows. (iii) New disclosures of expenses by nature Entities are required to present expenses in the operating category by nature, function or a mix of both. MFRS 18 includes guidance for entities to assess and determine which approach is most appropriate based on the facts and circumstances. (iv) Management-defined Performance Measures (MPMs) The standard requires disclosure of explanations of the entity’s companyspecific measures that are related to the statements of profit or loss, referred to MPMs. MPMs are required to be reconciled to the most similar specified subtotal in MFRS Accounting Standards. (v) Enhanced Guidance on Aggregation and Disaggregation MFRS 18 provides enhanced guidance on grouping items based on shared characteristics and requires disaggregation when items have dissimilar characteristics or when such disaggregation is material. DESTINI BERHAD 143 ANNUAL REPORT 2026
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