1. BASIS OF PREPARATION (continued) (b) Basis of measurement The financial statements have been prepared on the historical cost basis except for the following items, which are measured based on the measurement basis stated below: • Derivative financial instruments • Non-derivative financial instruments at fair value through profit or loss (“FVTPL”) • Investment properties • Equity securities at fair value through other comprehensive income (“FVOCI”) Application of MFRS 129, Financial Reporting in Hyperinflationary Economies for Group entities whose functional currency is the Turkish Lira The Turkish economy was designated as hyperinflationary for reporting periods ending on or after 30 April 2022. As a result, MFRS 129, Financial Reporting in Hyperinflationary Economies has been applied for Group entities whose functional currency is the Turkish Lira. The assets, liabilities, equity items, income and expenses of the Group’s foreign operations in Türkiye are translated to Ringgit Malaysia (“RM”) at the exchange rate at the reporting date. Prior to that, their financial statements for the current period are restated to account for changes in the general purchasing power of the local currency. The restatement is based on relevant price indices at the reporting date. The application of MFRS 129 includes: • Adjustment of historical cost non-monetary assets and liabilities for the change in purchasing power caused by inflation from the date of initial recognition to the reporting date; • Adjustment of the income and expenses for inflation during the reporting period; • The income and expenses are translated at the foreign exchange rate at the reporting date instead of an average rate; and • Adjustment of the income and expenses to reflect the impact of inflation and exchange rate movement on holding monetary assets and liabilities in local currency. Hyperinflationary adjustments are based on available data for changes in the Consumer Price Index published by the Turkish Statistical Institute. Net monetary gain/(loss) arising from hyperinflationary economies is derived as the difference resulting from the restatement of non-monetary assets and liabilities, owners’ equity and items in the statement of profit or loss and other comprehensive income and the adjustment of index linked assets and liabilities. (c) Functional and presentation currencies These financial statements are presented in RM, which is the Company’s functional currency. All financial information is presented in RM and has been rounded to the nearest thousand, unless otherwise stated. (d) 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. Annual Report 2023 149
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