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ANNUAL REPORT 2021 109

Notes to the fiNaNcial statemeNts

2. significant accOUnting POlicies (cOnt’D.)

2.1 Basis of preparation (cont’d.)
Measures announced by BNM to assist individuals, small-medium enterprises (“SMEs”) and corporates affected
by COVID-19 (cont’d.)

Repayment assistance and classification in the Central Credit Reference Information System (“CCRIS”)
Recognising the challenging environment, financial institutions have granted additional repayment assistance for
individuals and SMEs whose income have been affected by the pandemic, to support economic recovery and safeguard
livelihood of Malaysians.
The repayment assistance does not automatically result in a stage transfer under MFRS 9 in the absence of other
factors indicating evidence of significant increase in credit risk (“SICR”). Judgement and more holistic assessment of
all relevant indicators and information, such as historical repayment and delinquency trend pre-COVID-19 pandemic,
are applied in determining SICR. In addition, the loan/financing that is approved under repayment assistance is
exempted to be reported as rescheduling and restructuring (“R&R”) and credit impaired in CCRIS.
2.2 Changes in accounting policies

The accounting policies adopted are consistent with those of the previous financial year except as follows:
On 1 January 2021, the Group and the Bank adopted the following new and amended MFRS mandatory for annual
financial periods on or after 1 January 2021.
• Interest Rate Benchmark Reform - Phase 2 (Amendments to MFRS 9 Financial Instruments, MFRS 139 Financial
Instruments: Recognition and Measurement, MFRS 7 Financial Instruments: Disclosures, MFRS 4 Insurance
Contracts and MFRS 16 Leases)
The adoption of the above pronouncements did not have any material impact on the financial statements of the Group
and the Bank.
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
the Bank’s financial statements are disclosed below. The Group and the Bank intend to adopt these standards,
if applicable, when they become effective.

Effective for financial periods beginning on or after 1 January 2022
• Annual Improvements to MFRS Standards 2018-2020 (Amendments to MFRS 101 First-time Adoption of Malaysian
Financial Reporting Standards, MFRS 9 Financial Instruments and MFRS 141 Agriculture
• MFRS 3 Reference to the Conceptual Framework (amendments to MFRS 3 Business Combinations)

• MFSR 116 Property, Plant and Equipment - Proceeds before Intended Use (Amendments to MFRS 116 Property, Plant
and Equipment)
• MFRS 137 Onerous Contracts - Cost of Fulfilling a Contract (Amendments to MFRS 137 Provisions, Contingent Liabilities
and Contingent Assets