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Section 06 Financial Statements
101

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 indication 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 2020, the Group and the Bank adopted the following new and amended MFRS mandatory for annual
financial periods on or after 1 January 2020.

• MFRS 3 Definition of business (Amendments to MFRS 3)
• MFRS 4 Extension of the temporary exemption from applying MFRS 9 (Amendments to MFRS 4 Insurance Contracts)
• Interest Rate Benchmark Reform - Amendments to MFRS 7 Financial Instruments: Disclosure, MFRS 9 Financial
Instruments and MFRS 139 Financial Instruments: Recognition and Measurement
• MFRS 16 Leases on Covid-19 related rent concessions (amendments to MFRS 16 Leases)
• MFRS 101 Definition of Material (Amendments to MFRS 101)
• MFRS 108 Definition of Material (Amendments to MFRS 108)

The adoption of the above pronouncements did not have any 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 2021

• MFRS 4 Interest rate benchmark reform
• Interest Rate Benchmark Reform - Phase 2 (Amendments to MFRS 9, MFRS 139, MFRS 7, MFRS 4 and MFRS 16)
The Group and the Bank expect that the adoption of the above standards and interpretations will have no material impact
on the financial statements in the period of initial application except for Interest Rate Benchmark Reform - Phase 2
(Amendments to MFRS 9, MFRS 139, MFRS 7, MFRS 4 and MFRS 16).