Page 211 - Full Book_24.4.2021

NOTES TO THE
FINANCIAL STATEMENTS in retrospect

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for the financial year ended 31 december 2020 (continUed)
the Will to Suceed

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2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
2.24 Material profit or loss items achieving a leading repute

the Group has identified item which is material due to the significance of their nature and/or their amount. this is listed
separately here to provide a better understanding of the financial performance of the Group.
Group |
2020 2019
RM’000 RM’000
loss on modification of financial assets (136,380) – Paving the Way for a Sustainable future

during the financial period, bank islam malaysia berhad (“the bank”) granted an automatic moratorium on certain
financing repayments (except for credit card balances), for individuals and small and medium enterprises (Smes) for a
period of six months from 1 april 2020. the automatic moratorium was applicable to financing that are not in arrears
exceeding 90 days and denominated in malaysian ringgit. this measure was to assist customers experiencing temporary
financial constraints due to the covid-19 pandemic.

following the end of the six-month blanket moratorium, the bank continue to support financing customers that face 205
difficulties in fulfilling their financial obligation, through the targeted repayment assistance (“tra”) program.
as a result of the payment moratorium and tra, the Group recognised a one-off loss of rm136,380,000 arising from
the modification of the expected cash flows of the financing.
the following table includes a summary of information for financial assets with lifetime ecl whose cash flows were
modified during the financial year as part of the Group and bank’s restructuring activities and their respective effect on
the Group’s financial performance: adhering to the best Governance Practices
Group
2020 2019
RM’000 RM’000
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financing, advances and others:
amortised cost before modification 1,881,218 –
net modification loss 1,867,943 –

2.25 Income tax Laying the Foundation for Financial Growth
income tax expense comprises current and deferred tax. current tax and deferred tax are recognised in profit or loss
except to the extent that it relates to a business combination or items recognised directly in equity or other comprehensive
income.
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current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted
or substantively enacted by the end of the reporting period, and any adjustment to tax payable in respect of previous
financial years.
deferred tax is recognised using the liability method, providing for temporary differences between the carrying amounts
of assets and liabilities in the statement of financial position and their tax bases. deferred tax is not recognised for the additional information & disclosure Summary
following temporary differences: the initial recognition of goodwill, the initial recognition of assets or liabilities in a
transaction that is not a business combination and that affects neither, accounting nor taxable profit or loss. deferred tax
is measured at the tax rates that are expected to be applied to the temporary differences when they reverse, based on the
laws that have been enacted or substantively enacted by the end of the reporting period. |
24 th aGm information