Page 207 - Bank-Muamalat-AR2020

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Our Performance Sustainability Statement Governance Our Numbers Other Information

2. SIGNIFICANT ACCOuNTING POLICIES (CONT’D.)
2.3 Summary of significant accounting policies (cont’d.)

(t) Government financing scheme and government financing facility
Financing under a government scheme is recognised and measured in accordance with MFRS 9 Financial
Instruments, with the benefit at a below market and concession rate is measured as the difference between the initial
carrying amount or fair value of the financing and the amount received. Government financing facility is measured
in accordance with the amount received.
The benefit of a financing or a facility under a government scheme that addresses identified costs or expenses
incurred by the Group and the Bank is recognised in the profit or loss in the same financial period when the costs
or expenses are recognized, when the required conditions are fulfilled in accordance with MFRS 120 Accounting for
Government Grants and Disclosure of Government Assistance.
2.4 Changes in accounting policies and disclosures

The significant accounting policies and methods of computation applied by the Group and the Bank are consistent with
those adopted in the most recent audited financial statements for the financial period ended 31 December 2019 except for
adoption of the following MFRS and Interpretations of the Issues Committee (”IC Interpretations”) during the current
financial year with effective dates as follows:

Effective for annual periods
Description beginning on or after

Amendments to MFRS 3: Business Combinations-Definition of Business 1 January 2020
Amendments to MFRS 101: Presentation of Financial Statements-Definition of Material 1 January 2020
Amendments to MFRS 108: Accounting Policies, Changes in Accounting Estimates and 1 January 2020
Errors- Definition of Material
Amendments to MFRS 9, MFRS 139 and MFRS 7: Interest Rate Benchmark Reform 1 January 2020
Amendments to MFRS 16: Leases-Covid-19-related Rent Concessions 1 June 2020
The adoption of the MFRS and IC Interpretations above does not have material impactt ot he financial statements of the
Group and the Bank.