Bank Islam Integrated Annual Report 2020

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 2.22 Fair value measurements (continued) If an asset or a liability measured at fair value has a bid price and an ask price, then the Group measures assets and long positions at a bid price and liabilities and short positions at an ask price. Portfolios of financial assets and financial liabilities that are exposed to market risk and credit risk that are managed by the Group on the basis of the net exposure to either market or credit risk are measured on the basis of a price that would be received to sell a net long position (or paid to transfer a net short position) for a particular risk exposure. Those portfolio-level adjustments are allocated to the individual assets and liabilities on the basis of the relative risk adjustment of each of the individual instruments in the portfolio. The fair value of a demand deposit is not less than the amount payable on demand, discounted from the first date on which the amount could be required to be paid. The Group and the Bank recognise transfers between levels of the fair value hierarchy as of the end of the reporting period during which the change has occurred. 3. CASH AND SHORT-TERM FUNDS Group Bank 2020 RM’000 2019 RM’000 2020 RM’000 2019 RM’000 Cash and balances with banks and other financial institutions 725,644 821,600 725,548 821,071 Money at call and interbank placements with remaining maturity not exceeding one month 4,490,732 1,992,733 4,490,732 1,992,385 5,216,376 2,814,333 5,216,280 2,813,456 All bank balances are assessed to have low credit risk as they are held with reputable banking institutions and the identified expected credit loss was immaterial. Cash and bank balances of the Group includes restricted cash amounting to RM4,423,000 (2019: RM54,764,000) which is attributed to the creation of units of the funds. Accordingly, amount due to trustee was recognised and disclosed in Note 19 to the financial statements. BANK ISLAM MALAYS IA BERHAD INTEGRATED ANNUAL REPORT 2020 221