BIMB Integrated Annual Report 2019

1 PRINCIPAL ACTIVITIES AND GENERAL INFORMATION BIMB Holdings Berhad is a public limited liability company, incorporated and domiciled in Malaysia and is listed on the Main Market of Bursa Malaysia Securities Berhad. The address of its registered office and principal place of business is as follows: Registered office and principal place of business 31 st Floor, Menara Bank Islam No. 22, Jalan Perak 50450 Kuala Lumpur The consolidated financial statements of the Company as at and for the financial year ended 31 December 2019 comprise the Company and its subsidiaries (together referred to as the “Group”). The Company is principally engaged in investment holding activities while the other Group entities are primarily involved in Islamic banking business, managing family and general takaful, and stock-broking businesses. The ultimate holding entity is Lembaga Tabung Haji (“LTH”), a hajj pilgrims’ fund statutory body established in Malaysia under the Tabung Haji Act, 1995 (Act 535). These financial statements were authorised for issue by the Board of Directors on 14 May 2020. 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting policies set out below have been applied consistently to the periods presented in these financial statements and have been applied consistently by Group entities, unless otherwise stated. 2.1 Basis of preparation (a) Statement of compliance The financial statements of the Group and of the Company have been prepared in accordance with the applicable Malaysian Financial Reporting Standards (“MFRS”), International Financial Reporting Standards (“IFRS”), the requirements of Companies Act 2016 in Malaysia and Shariah requirements. This is the first set of the Group’s and of the Company’s annual financial statements in which MFRS 16, Leases has been applied. Changes to significant accounting policies are described in Note 2.1(b). Other than as disclosed in Note 2.1(b) on adoption of MFRS 16, the adoption of other accounting standards, interpretation and amendments did not have any significant impact on the Group and the Company. The following are accounting standards, amendments and interpretations of the MFRS framework that have been issued by the Malaysian Accounting Standards Board (“MASB”) but have not been adopted by the Group and the Company. MFRSs, Interpretations and amendments effective for annual periods beginning on or after 1 January 2020 • Amendments to MFRS 3, Business Combinations – Definition of a Business • Amendments to MFRS 101, Presentation of Financial Statements and MFRS 108 Accounting Policies, Changes in Accounting Estimates and Errors – Definition of Material • Amendments to MFRS 9, 139 & 7 – Interest Rate Benchmark Reform MFRSs, Interpretations and amendments effective for annual periods beginning on or after 1 January 2021 • MFRS 17, Insurance Contracts NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019 182 Integrated Annual Report 2019 Group Overview Sustaining The Group Management Discussion & Analysis Group Governance