Page 209 - Bank-Muamalat_Annual-Report-2023

ANNUAL REPORT 2023
OUR NUMBERS

1. BASIS OF PREPARATION (CONT’D.)
1.1 Statement of compliance (cont’d.)

MFRSs, interpretations and amendments effective for annual periods beginning on or after a date yet to be
confirmed
- Amendments to MFRS 10, Consolidated Financial Statements and MFRS 128, Investments in Associates and Joint
Ventures – Sale or Contribution of Assets between an Investor and its Associate or Joint Venture

The Group and the Bank plans to apply the abovementioned accounting standards, interpretations and amendments,
where applicable:

- from the annual period beginning on 1 January 2024 for the amendments that are effective for annual periods
beginning on or after 1 January 2024.
- from the annual period beginning on 1 January 2025 for the amendments that are effective for annual periods
beginning on or after 1 January 2025.
The initial application of the accounting standards, interpretations or amendments are not expected to have any material
financial impact to the current period and prior period financial statements of the Group and of the Bank.
1.2 Basis of measurement

The consolidated financial statements have been prepared on the historical cost basis except for the following items,
which are measured based on the measurement bases stated below:

Items Measurement bases
Islamic derivative financial instruments Fair value
Fair value through profit or loss (“FVTPL”) Fair value
Fair value through other comprehensive income (“FVOCI”) Fair value
Investment properties Fair value

1.3 Functional and presentation currencies

The financial statements are presented in Ringgit Malaysia (“RM”), which is the Bank’s functional currency and has been
rounded to the nearest thousand (“RM’000”), except when otherwise indicated.

1.4 Use of estimates and judgements
The preparation of the financial statements in conformity with MFRSs requires management to make judgements,
estimates and assumptions that affect the application of accounting policies and the reported amounts of assets,
liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimates are revised and in any future periods affected.

There are no significant areas of estimation uncertainty and critical judgements in applying accounting policies
that have significant effect on the amounts recognised in the financial statements other than Note 3 - Significant
accounting judgement, estimates and assumptions.

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