Bank Islam Integrated Annual Report 2020

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 2.1 Basis of preparation (continued) (a) Statement of compliance (continued) MFRSs, Interpretations and amendments effective for annual periods beginning on or after 1 January 2021 • • Amendments to MFRS 9, MFRS 139, MFRS 7, MFRS 4 and MFRS 16, Interest Rate Benchmark Reform-Phase 2 MFRSs, Interpretations and amendments effective for annual periods beginning on or after 1 January 2022 • • Annual improvements to MFRS Standards 2018-2020 • • Amendments to MFRS 3, Business Combinations • • Amendments to MFRS 116, Property, Plant and Equipment • • Amendments to MFRS 137, Provisions, Contingent Liabilities and Contingent Assets MFRSs, Interpretations and amendments effective for annual periods beginning on or after 1 January 2023 • • Amendments to MFRS 101, Presentation of Financial Statements – Classification of Liabilities as Current or Non-current • • MFRS 17, Insurance Contracts • • Amendments to MFRS 17, Insurance Contract MFRSs, Interpretations and amendments effective for annual periods beginning 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 plan to apply the abovementioned standards, amendments and interpretations on the respective effective dates. The initial application of the accounting standards, amendments and interpretations are not expected to have any material financial impacts to the current period and prior period financial statements of the Group and the Bank. (b) Basis of measurement The financial statements have been prepared on the historical cost convention except for derivative financial instruments, financial assets at fair value through profit or loss (“FVTPL”) and fair value through other comprehensive income (“FVOCI”), which have been measured at fair value. (c) Functional and presentation currency The financial statements are presented in Ringgit Malaysia (“RM”), which is the Bank’s functional currency. All financial information is presented in RM and has been rounded to the nearest thousand (RM’000), unless otherwise stated. (d) Use of estimates and judgement The preparation of the financial statements 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 financial statements in the period in which the estimates are revised and in any future periods affected. BANK ISLAM MALAYS IA BERHAD INTEGRATED ANNUAL REPORT 2020 201