NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2023 178 WE ARE KENANGA LEADERSHIP MESSAGE VALUE CREATION MODEL KENANGA INVESTMENT BANK BERHAD ANNUAL REPORT 2023 3. ACCOUNTING POLICIES (CONT’D.) 3.4 Material accounting policy information (cont’d.) (s) Income recognition (cont’d.) (ii) Interest and similar income (cont’d.) Interest income on all trading assets and financial assets mandatorily required to be measured at FVTPL is recognised using the contractual interest rate in net trading income and net gains or losses on financial assets at FVTPL, respectively. (iii) Fee and other income Brokerage fees are recognised on contract date upon execution of trade on behalf of clients computed based on a pre-determined percentage of the contract value. Loan arrangement fees and commissions, management and participation fees, underwriting fees and placement fees are recognised as income when all conditions precedent are fulfilled. Custodian fees, guarantee fees and fund management fees are recognised as income based on time apportionment basis. Corporate advisory fees are recognised as income on the completion of each stage of the assignment. Rollover fee is recognised upon the rollover of specific contracts under share margin financing. Gain or loss on disposal of investments is recognised upon the transfer of risks and rewards of ownership. (iv) Islamic banking income Income from Islamic banking scheme is recognised on an accrual basis in accordance with Shariah principles. (v) Dividend income Dividend income is recognised when the right to receive the payment is established. (t) Interest, financing and profit expense Interest expense on deposits from customers, placements of financial institutions and borrowings is recognised using EIR.
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