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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).