BIMB Integrated Annual Report 2019

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 2.20 Contingencies Contingent liabilities Where it is not probable that an outflow of economic benefits will be required, or the amount cannot be estimated reliably, the obligation is not recognised in the statements of financial position and is disclosed as a contingent liability, unless the probability of outflow of economic benefits is remote. Possible obligations, whose existence will only be confirmed by the occurrence or non-occurrence of one or more future events, are also disclosed as contingent liabilities unless the probability of outflow of economic benefits is remote. Contingent assets Where it is not possible that there is an inflow of economic benefits, or the amount cannot be estimated reliably, the asset is not recognised in the statements of financial position and is disclosed as a contingent asset, unless the probability of inflow of economic benefits is remote. Possible obligations, whose existence will only be confirmed by the occurrence or non-occurrence of one or more future events, are also disclosed as contingent assets unless the probability of inflow of economic benefits is remote. 2.21 Operating segments An operating segment is a component of the Group that engages in business activities from which it may earn revenue and incur expenses, including revenue and expenses that relate to transactions with any of the Group’s other components. Operating segment results are reviewed regularly by the chief operating decision maker, which in this case is the Chief Executive Officer of the Group’s holding company, to make decisions about resources to be allocated to the segment and to assess its performance, and for which discrete financial information is available. 2.22 Equity instruments Instruments classified as equity are measured at cost on initial recognition and are not remeasured subsequently. Share Capital Ordinary shares are classified as equity in the statement of financial position. Cost directly attributable to the issuance of new equity shares are taken to equity as a deduction from the proceeds. Warrant Warrants issued by the Group and the Company is an equity instrument and classified as equity in the statement of financial position. These warrants issued are free detachable warrants which will expire at the end of ten years from the date of issuance. Upon issuance of warrants, it is the Group and the Company’s (“the issuers”) obligation to issue a fixed amount of ordinary share capital at the agreed exercise price. Any premium received for the warrants on the issuers own shares is added directly to equity. Any consideration paid is deducted directly from equity. Changes in the fair value of an equity instrument are not recognised in the financial statements. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019 (CONTINUED) 206 Integrated Annual Report 2019 Group Overview Sustaining The Group Management Discussion & Analysis Group Governance