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114 FINANCIAL EXIM BANK MALAYSIA
STATEMENTS

Notes to the fiNaNcial statemeNts

2. significant accOUnting POlicies (cOnt’D.)

2.4 Summary of significant accounting policies (cont’d.)
(d) Investment properties
Investment properties are properties which are owned to earn rental income or for capital appreciation or for both.

Investment properties are stated at cost less accumulated depreciation and impairment losses, consistent with
the accounting policy for property and equipment as stated in accounting policy Note 2.4(b).

Depreciation is charged to the statement of profit and loss on a straight-line basis over the estimated useful lives
of fifty to ninety-nine (50 - 99) years for building. Freehold land is not depreciated.
Investment properties are derecognised when either they have been disposed of or when the investment property
is permanently withdrawn from use and no future economic benefits are expected from its disposal. Any gain or
loss on the retirement or disposal of an investment property is recognised in statement of profit and loss in the
year of retirement or disposal.
(e) Impairment of non-financial assets

The carrying amount of the assets, other than deferred tax assets, non-current assets held for sales and financial
assets (other than investments in subsidiaries), are reviewed at each reporting date to determine whether there
is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated to
determine the amount of impairment loss.
An impairment loss is recognised in the statement of profit and loss in the period in which it arises, unless the
asset is carried at a revalued amount, in which case the impairment loss is accounted for as a revaluation decrease
to the extent that the impairment loss does not exceed the amount held in the asset revaluation reserve for the
same asset.

An assessment is made at each reporting date as to whether there is any indication that previously recognised
impairment losses may no longer exist or may have decreased. A previously recognised impairment loss is reversed
only if there has been a change in the estimates used to determine the asset’s recoverable amount since the last
impairment loss was recognised. If that is the case, the carrying amount of the asset is increased to its recoverable
amount. That increase cannot exceed the carrying amount that would have been determined, net of depreciation,
had no impairment loss been recognised previously. Such reversal is recognised in the statement of profit and loss
unless the asset is measured at revalued amount, in which case reversal is treated as revaluation increase.
(f) Financial assets

Financial assets are recognised in the statements of financial position when, and only when, the Group and the
Bank become a party to the contractual provisions of the financial instrument.

Initial recognition and measurement
Financial assets are classified, at initial recognition, as subsequently measured at amortised cost, Fair Value
through Other Comprehensive Income (“FVOCI”) and Fair Value through Profit or Loss (“FVTPL”).

The classification of financial assets at initial recognition depends on the financial asset’s contractual cash flow
characteristics and the Group’s and the Bank’s business model for managing them. With the exception of loans,
advances and financing that do not contain a significant financing component or for which the Group and the Bank
have applied the practical expedient, the Group and the Bank initially measure a financial asset at its fair value plus,
in the case of a financial asset not at FVTPL, transaction costs.