ACCOUNTABILITY | NOTES TO THE FINANCIAL STATEMENTS 189 INTEGRATED ANNUAL REPORT 2026 2. SUMMARY OF MATERIAL ACCOUNTING POLICIES (CONTINUED) 2.27 Warrants reserve Warrants reserve arises from the issuance of free detachable warrants together with the Rights Issue completed on 28 June 2022, and represents the allocation of the proceeds from the Rights Issue based on the fair value of the warrants at issuance date. The fair value of warrants is credited to a warrants reserve which is part of the Company’s equity. When the warrants are exercised, the related amounts are transferred to share capital. When the warrants are not exercised and lapsed, the related warrant reserve is transferred to retained earnings. 2.28 Redeemable convertible preference shares Redeemable Convertible Preference Shares (“RCPS”) are classified as equity when the instrument does not contain any contractual obligation for the Group to deliver cash or another financial asset to another person or entity or to exchange financial assets or financial liabilities with another person or entity that are potentially unfavourable to the issuer. The RCPS were issued by one of the subsidiaries of the Group. Accordingly, in the consolidated statement of financial position, the proceeds from the issuance of RCPS are not recognised within equity attributable to owners of the Company. Proceeds from the issuance of RCPS are recognised in equity, net of directly attributable transaction costs. Transaction costs are incremental costs directly attributable to the issuance of new equity instruments, such as underwriting fees, professional fees and stamp duties. Upon conversion of RCPS into ordinary shares of the issuer, the carrying amount of the RCPS is reclassified within equity to ordinary share capital and share premium (if any). No gain or loss is recognised in profit or loss in respect of the conversion. 3. STANDARDS, AMENDMENTS TO PUBLISHED STANDARDS AND INTERPRETATIONS, WHICH ARE APPLICABLE AND ADOPTED BY THE GROUP AND THE COMPANY The Group and the Company have applied the following amendments to published standards for the first time for the financial year beginning on 1 February 2025: Amendments to MFRS 121 “Lack of Exchangeability” The amendments clarify that a currency is exchangeable when an entity is able to exchange it into another currency within a time frame that allows for a normal administrative delay and through a market or exchange mechanism that creates enforceable rights and obligations. If an entity can only obtain no more than an insignificant amount of the other currency at the measurement date for the specified purpose, then the currency is not exchangeable. In such cases, the entity is required to estimate the spot exchange rate at the measurement date. The adoption of the above amendment did not have any impact to the Group, as the Group does not have operations or material transactions in currencies that are not exchangeable. IFRS Interpretation Committee (IFRIC) agenda decisions that are concluded and published In view that MFRS is fully converged with IFRS Accounting Standards, the Group and the Company consider all agenda decisions published by the IFRIC. Where relevant, the Group may change its accounting policy to be aligned with the agenda decision. The Group has applied the International Financial Reporting Standard Interpretation Committee (“IFRIC”) agenda decision on MFRS 8 Operating Segments on the disclosure of revenues and expenses for reportable segments. This agenda decision clarified that entities reporting segment information in their financial statements should disclose specified income and expense items for each reportable segment, provided these items are included in the segment profit measure reviewed by the CODM, regardless of whether they are separately reviewed by the CODM. Additionally, entities should apply the requirements for materiality and aggregation under MFRS 101 when determining which additional material items of income and expense should be disclosed in segment reporting.
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