Page 121 - EXIM-Bank_Annual-Report-2023

Management Discussion and Analysis
Management Discus sion and Analysis Ensuring Sustainability Commitment to Lead Upholding Accountability Financial Statements 119

Notes to the fiNaNcial statemeNts

2. MATErIAL ACCouNTING PoLICy INForMATIoN (cont’d)
2.2 Changes in accounting policies (cont’d)

The adoption of the above new MFRSs and amendments to MFRSs do not have any significant financial impact to the
Group’s and the Bank’s financial statements except the MFRS 17 adoption as disclosed below:
MFrS 17 Insurance Contracts

The Group has applied MFRS 17 Insurance Contracts (“MFRS 17”) from 1 January 2023 and accordingly has amended
the relevant accounting policies and restated the comparative balances in accordance with the requirements of the
standard.
On transition date, 1 January 2022, the Group and the Bank:
- Identified, recognised and measured each group of insurance contract/takaful certificate and reinsurance contracts
as if MFRS 17 had always applied (unless impracticable)
- Identified, recognised and measured assets for insurance/takaful acquisition cash flows as if MFRS 17 had always
applied;
- Recognised any resulting net difference in equity.

The financial effect arising from the adoption of the standard is disclosed in Note 47.
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 2024
• MFRS 7 Supplier Finance Arragements (Amendments to MFRS 107 and MFRS 7)
• MFRS 16 Lease Liability in a Sale and Leaseback (Amendments to MFRS 16)
• MFRS 101 Non-current Liabilities with Covenants (Amendments to MFRS 101)
• MFRS 107 Supplier Finance Arragements (Amendments to MFRS 107 and MFRS 7)

Effective for financial periods beginning on or after 1 January 2025
• MFRS 121 Lack of Exchangeability (Amendments to MFRS 121)

The Group and the Bank expect that the adoption of the above standards and interpretations will have no material
impact on the financial statements.