2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 2.19 Material profit or loss items The Group and the Bank have identified items which is material due to the significance of their nature and/or their amount. This is listed separately here to provide a better understanding of the financial performance of the Group and of the Bank. Group and Bank 2022 RM’000 2021 RM’000 Loss on modification of financial assets – (48,911) During the previous financial year, the Group and the Bank granted an automatic moratorium on certain financing repayments (except for credit card balances), to individuals and small and medium enterprises (SMEs) for a period of six months from 1 April 2020. The automatic moratorium was applicable to financing that are not in arrears exceeding 90 days and denominated in Malaysian Ringgit. This measure was to assist customers experiencing temporary financial constraints due to the COVID-19 pandemic. Following the end of the six-month blanket moratorium, the Group and the Bank continue to support financing customers that face difficulties in fulfilling their financial obligation, through various Repayment Assistance (“RA”) program. As a result of the payment moratorium and TRA, the Group and the Bank recognised a one-off loss of RMNil (2021: RM48,910,000) arising from the modification of the expected cash flows of the financing. The following table includes a summary of information for financial assets with lifetime ECL whose cash flows were modified during the financial year as part of the Group and Bank's restructuring and rescheduling activities and their respective effect on the Group and the Bank's financial performance: Group and Bank 2022 RM’000 2021 RM’000 Financing, advances and others: Amortised cost before modification 1,764,242 1,247,366 Net modification loss 1,751,328 1,232,548 2.20 Income tax Income tax expense comprises current and deferred tax. Current tax and deferred tax are recognised in profit or loss except to the extent that it relates to a business combination or items recognised directly in equity or other comprehensive income. Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted by the end of the reporting period, and any adjustment to tax payable in respect of previous financial years. Notes to the financial statements for the financial year ended 31 December 2022 Integrated Report 2022 276
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