Page 340 - Bank-Muamalat-Annual-Report-2021

338 bank MuaMalat Malaysia berhaD
ABOUT US OUR LEADERSHIP OUR STRATEGY OUR PERFORMANCE

NOTES TO THE FINANCIAL STATEMENTS
31 DECEMbEr 2021 (26 JAMADIL AwAL 1443H)

47. fAIR vALue MeAsuReMeNTs (cONT’D.)

(b) financial instruments not carried at fair value (cont’d.)
Deposits from customers
The fair values of deposits from customers with maturities of less than one year are estimated to approximate their
carrying values due to the relatively short maturity of these instruments. The fair values of deposits from customers
with remaining maturities of more than one year are estimated based on discounted cash flows using applicable rates
currently offered for deposits with similar remaining maturities.
subordinated sukuk & senior sukuk
The fair values of subordinated obligations are estimated by discounting the expected future cash flows using the
applicable prevailing profit rates for financing with similar risk profiles.

48. OffseTTING fINANcIAL AsseTs AND fINANcIAL LIABILITIes

Financial assets and financial liabilities subject to offsetting, enforceable master netting arrangements and similar agreements
are as follows:

Amount not set off
in the statement of
financial position
Gross
amount of Gross Net amount
recognised amount set presented Amount
financial off in the in the related to Amount
assets/ statement of statement recognised related to
financial of financial of financial financial financial
liabilities position position instruments collateral Net amount

Group and Bank RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
2021
Derivative assets 5,437 - 5,437 - - 5,437
Derivative liabilities (61,543) - (61,543) - - (61,543)

2020
Derivative assets 47,820 - 47,820 - - 47,820
Derivative liabilities (167,334) - (167,334) - - (167,334)

Financial assets and financial liabilities are offset and the net amount is reported in the statement of financial position when
there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis, or realise
the asset and settle the liability simultaneously.
The amount not set off in the statement of financial position relate to transactions where:

(i) the counterparty has an offsetting exposure with the Group and the Bank and a master netting or similar arrangements
is in place with a right to set off only in the event of default, insolvency or bankruptcy; and
(ii) cash or securities are received or cash pledged in respect of the transaction described above.