2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 2.1 Basis of preparation (continued) (a) Statement of compliance (continued) Bank Islam has kept abreast with the latest IBOR developments in Malaysia. A Task Force (“TF”) involving key stakeholders has been formed, headed by Head of Treasury & Markets. There were five TF meetings held to date, on 18 August 2020, 8 December 2020, 16 February 2021, 28 May 2021 and 1 November 2021 respectively. Progress on LIBOR transition against the industry signpost issued by BNM, was discussed at the TF meetings, and tabled to the Asset & Liability Committee (“ALCO”), Board Risk Committee (“BRC”) and Board of Directors (“BOD”) of the Bank for deliberation and to be monitored on a regular basis. The Bank has ceased all new financing referenced to LIBOR, and have renegotiated the existing LIBOR financing, to a new Reference Rate ie. USD COF. Bank Islam no longer has any LIBOR exposure w.e.f. 9 July 2021. Other than as described above, the adoption of other accounting standards, interpretations and amendments did not have any significant impact on the Group and the Bank. The following are accounting standards, amendments and interpretations of the MFRS framework that have been issued by the Malaysian Accounting Standards Board (“MASB”) but have not been adopted by the Group and the Bank. MFRSs, Interpretations and amendments effective for annual periods beginning on or after 1 January 2022 • • Annual improvements to MFRS Standards 2018-2020 • • Amendments to MFRS 3, Business Combinations • • Amendments to MFRS 116, Property, Plant and Equipment • • Amendments to MFRS 137, Onerous Contract – Cost of Fulfilling a Contract – Provisions, Contingent Liabilities and Contingent Assets MFRSs, Interpretations and amendments effective for annual periods beginning on or after 1 January 2023 • • Amendments to MFRS 101, Presentation of Financial Statements – Classification of Liabilities as Current or Non-current, Disclosure of Accounting Policies • • MFRS 17, Insurance Contracts • • Amendments to MFRS 17, Insurance Contract • • Amendments to MFRS 108, Definition of Accounting Estimates MFRSs, Interpretations and amendments effective for annual periods beginning or after a date yet to be confirmed • • Amendments to MFRS 112, Deferred Tax related to Assets and Liabilities arising from a Single Transaction • • Amendments to MFRS 10, Consolidated Financial Statements and MFRS 128, Investments in Associates and Joint Ventures – Sale or Contribution of Assets between an Investor and its Associate or Joint Venture The Group and the Bank plan to apply the abovementioned standards, amendments and interpretations on the respective effective dates. The initial application of the accounting standards, amendments and interpretations are not expected to have any material financial impacts to the current period and prior period financial statements of the Group and the Bank. INTEGRATED ANNUAL REPORT 202 1 Key Messages Overview Value Creation MD&A Sustainability Leadership Accountability Financial Additional Information 243
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