Page 190 - Full Book_24.4.2021

NOTES TO THE
FINANCIAL STATEMENTS

for the financial year ended 31 december 2020 (continUed)

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
2.1 Basis of preparation (continued)
(b) Basis of measurement
the financial statements have been prepared on the historical cost basis except for derivative financial instruments,
financial assets at fair value through profit or loss “fvtPl” and fair value through other comprehensive income
“fvoci”, which have been measured at fair value.
inteGrated annUal rePort 2020 (c) Functional and presentation currency

the financial statements are presented in ringgit malaysia (“rm”), which is the company’s functional currency.
all financial information is presented in rm and have been rounded to the nearest thousand (rm’000), unless
otherwise stated.
Use of estimates and judgements
(d)
the preparation of the financial statements requires management to make judgements, estimates and assumptions
that affect the application of accounting policies and the reported amounts of assets, liabilities, income and
expenses. actual results may differ from these estimates.
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estimates and underlying assumptions are reviewed on an ongoing basis. revisions to accounting estimates are
recognised in the financial statements in the period in which the estimates are revised and in any future periods
affected.
bimb holdinGS berhad 199701008362 (423858-X) notes: – Fair value of financial instruments
Significant areas of estimation, uncertainty and critical judgements used in applying accounting policies that have
significant effect in determining the amount recognised in the financial statements are described in the following

• Note 2.29 and Note 51
Impairment
• Note 2.12
–
Provision for outstanding claims including IBNR claims and actuarial
–
• Note 2.15 and 2.16
• Note 2.17
Computation of expense reserves
–
Income Tax/Deferred tax assets
• Note 2.25, Note 12 and Note 43 – reserves
2.2 Basis of consolidation
(a) Subsidiaries
Subsidiaries are entities, including structured entities, controlled by the company. the financial statements of the
subsidiaries are included in the consolidated financial statements from the date that control commences until the
date that control ceases.
the Group controls an entity when it is exposed, or has rights, to variable returns from its involvement with the
entity and has the ability to affect those returns through its power over the entity. Potential voting rights are
considered when assessing control only when such rights are substantive. the Group also considers it has de facto
power over an investee when, despite not having the majority of voting rights, it has the current ability to direct
the activities of the investee that significantly affect the investee’s return.
investments in subsidiaries are measured in the company’s statement of financial position at cost less impairment
losses, if any. Where there is indication of impairment, the carrying amount of the investment is assessed. a write
down is made if the carrying amount exceeds its recoverable amount.