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EXIM BANK MALAYSIA                                                                               ANNUAL REPORT 2024

             7 FINANCIAL STATEMENTS                                                                               121
            NOTES TO THE FINANCIAL STATEMENTS






            2.   MATERIAL ACCOUNTING POLICY INFORMATION (cont’d)

                 2.4   Summary of material accounting policy information (cont’d)
                       (a)  Subsidiaries and basis of consolidation (cont’d)

                          (iii) Consolidation of EXIM Sukuk Malaysia Berhad
                             EXIM Sukuk Malaysia Berhad (“EXIM Sukuk”) is a Special Purpose Vehicle (“SPV”) entity established by the
                             Bank as part of its Multi-currency Sukuk Issuance Programme. The share capital of the SPV is currently held
                             in trust by TMF Trustee Malaysia Berhad for EXIM Bank pursuant to the Declaration of Trust in relation to
                             the Multi-currency Sukuk Issuance Programme. The SPV shall act as issuer, trustee and purchaser/seller of
                             tangible/non-tangible assets. Management had concluded that control over EXIM Sukuk exist and, hence,
                             EXIM Sukuk is deemed to be a subsidiary.
                       (b)  Property and equipment and right-of-use assets

                          All items of property and equipment and right-of-use assets are initially recorded at cost. The cost of an item
                          of property and equipment and right-of-use assets is recognised as an asset if, and only if, it is probable that
                          future economic benefits associated with the item will flow to the Group and the Bank, the cost of the item can be
                          measured reliably.
                          Subsequent  to  recognition,  property  and  equipment  and  right-of-use  assets  are  measured  at  cost  less
                          accumulated depreciation and accumulated impairment losses. When significant parts of property and equipment
                          and right-of-use assets are required to be placed in intervals, the Group and the Bank recognise such parts as
                          individual assets with specific useful lives and depreciation, respectively. Likewise, when a major inspection is
                          performed, its cost is recognised in the carrying amount of the property and equipment and right-of-use assets
                          as a replacement if the recognition criteria are satisfied. All other repair and maintenance costs are recognised
                          in statement of profit or loss as incurred.

                          The depreciation of right-of-use assets is provided on a straight-line basis over the shorter of its estimated useful
                          life and the lease term.
                          Freehold land has an unlimited useful life and therefore is not depreciated. Depreciation of other property and
                          equipment and right-of-use of asets is provided for on a straight-line basis over the estimated useful lives of the
                          assets as follows:
                          Building                                                                       50 - 99 years
                          Renovation and improvements                                                        10 years
                          Furniture, electrical, fittings and equipment                                      10 years
                          Motor vehicles                                                                      5 years
                          Office equipment                                                                    5 years
                          Computers                                                                         3 - 5 years
                          Right-of-use assets                                                               1 - 6 years
                          Assets under construction/work-in-progress included in property and equipment are not depreciated as these
                          assets are not yet available for use.

                          The carrying values of property and equipment and right-of-use assets are reviewed for impairment when events
                          or changes in circumstances indicate that the carrying value may not be recoverable. The policy for the recognition
                          and measurement of impairment is in accordance with Note 2.4(e).
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