Page 256 - Full Book_24.4.2021

NOTES TO THE
FINANCIAL STATEMENTS

for the financial year ended 31 december 2020 (continUed)

26 RESERVES (CONTINUED)
26.2 Other reserves (continued)
Capital reserve
the capital reserve arose out of the issuance of bonus issue in a subsidiary of rm6,863,000.
Warrant reserve
inteGrated annUal rePort 2020 FVOCI reserve
the warrant reserve arose from the company’s issuance of 426,715,958 free detachable warrants on 11 december 2013.

the fvoci reserve comprises the cumulative net change in the fair value of financial assets at fvoci until the financial
assets are derecognised.
Translation reserve
the translation reserve comprises all foreign currency differences arising from the translation of the financial statements
of foreign operations and offshore banking operations – federal territory of labuan.
250 Regulatory reserve
the regulatory reserve represents the bank islam’s compliance with bnm’s Guideline on financial reporting for islamic
banking institution to maintain, in aggregate, loss allowance for non-credit-impaired exposures and regulatory reserve
of no less than 1% of total credit exposures, net of loss allowance for credit-impaired exposures. As at 31 December
bimb holdinGS berhad 199701008362 (423858-X) Long Term Incentive plan (“LTIp”) reserve
2020, the regulatory reserve held against expected losses is reduced to 0%, a COVID-19 related measure to drawdown
prudential buffers as permitted by bnm.

the ltiP reserve comprises the cumulative value of employee services received for the issue of restricted Share Plan and
Performance Share Plan in takaful malaysia. When the ltiP is exercised, the amount from the ltiP reserve is transferred to
share capital. When the ltiP expires, the amount from the ltiP reserve is transferred to retained earnings. ltiP is disclosed
in note 27.

26.3 Acquisition reserve
The acquisition reserve is the difference between the consideration paid and the 49% equity interest in Bank Islam
malaysia berhad acquired in december 2013.