My EG Services Berhad Annual Report 2020

MY E.G. SERVICES BERHAD Regisration No. 200001003034 (505639-K) 160 NOTES TO THE FINANCIAL STATEMENTS For The Financial Year Ended 31 December 2020 (CONT’D) 4. SIGNIFICANT ACCOUNTING POLICIES (CONT’D) 4.26 JOINT ARRANGEMENTS (cont’d) Joint Ventures (cont’d) When the Group’s share of losses exceeds its interest in a joint venture, the carrying amount of that interest is reduced to zero, and the recognition of further losses is discontinued except to the extent that the Group has an obligation. The interest in the joint venture is the carrying amount of the investment in the joint venture determined using the equity method together with any long-term interests that, in substance, form part of the Group’s net investment in the joint venture. Unrealised gains on transactions between the Group and the joint venture are eliminated to the extent of the Group’s interest in the joint venture. Unrealised losses are eliminated unless cost cannot be recovered. The Group discontinues the use of the equity method from the date when the investment ceases to be a joint venture or when the investment is classified as held for sale. When the Group retains an interest in the former joint venture and the retained interest is a financial asset, the Group measures the retained interest at fair value at that date and the fair value is regarded as the initial carrying amount of the financial asset in accordance with MFRS 9. Furthermore, the Group also reclassifies its share of the gain or loss previously recognised in other comprehensive income of that joint venture to profit or loss when the equity method is discontinued. However, the Group will continue to use the equity method when an investment in a joint venture becomes an investment in an associate. Under such change in ownership interest, the retained investment is not remeasured to fair value but a proportionate share of the amounts previously recognised in other comprehensive income of the joint venture will be reclassified to profit or loss where appropriate. All dilution gains or losses arising in investments in joint ventures are recognised in profit or loss. 5. INVESTMENTS IN SUBSIDIARIES The Company 2020 2019 RM’000 RM’000 Unquoted shares, at cost 19,895 18,895 The details of the subsidiaries are as follows:- Name of Subsidiary Principal Place of Business/Country of Incorporation Percentage of Issued Share Capital Held by Parent Principal Activities 2020 2019 % % Gale Vector Sdn. Bhd. (“GVSB”) Malaysia 100 100 Provision of software solutions and maintenance services. MY EG Sdn. Bhd. (“EGSB”) Malaysia 100 100 Development and implementation of the Electronic Government services project and provision of other related services. MY E.G. Commerce Sdn.Bhd. (“MECSB”) Malaysia 100 100 Provision of auto insurance intermediary services and other related ancillary services. MY E.G. Capital Sdn. Bhd. (“MYEGC”) Malaysia 100 100 Investment holding.