NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2023 CONT’D 33. MATERIAL LITIGATION (Cont’d) On 22 September 2023, the Court of Appeal unanimously dismissed the Plaintiff’s appeal against the High Court decision dated 30 May 2022 in favour of the Defendant. The Court of Appeal also ordered the Plaintiff to pay costs of RM30,000 to the Defendant. The Plaintiff’s solicitors have confirmed that the Plaintiff would not be filing an application for leave to appeal to the Federal Court. As for the costs of RM30,000, the Defendant has on 5 February 2024 issued a demand for the payment of the said sum and allocator fees of RM1,200 upon receipt of the sealed Order from the Court of Appeal. 34. SIGNIFICANT EVENT SUBSEQUENT TO THE END OF THE REPORTING PERIOD On 3 March 2024, the Group has subscribed for 51,000 preference shares of 100 THB per share in GHL (Thailand) Co., Ltd. for a consideration of 5,100,000 THB. Consequently, the equity interest of the Group in GHL (Thailand) Co., Ltd. pursuant to the new issuance had increased from 97.74% to 97.84%. 35. ADOPTION OF NEW MFRSs AND AMENDMENTS TO MFRSs 35.1 New MFRSs adopted during the financial year The Group and the Company adopted the following Standards of the MFRS Framework that were issued by the Malaysian Accounting Standards Board (“MASB”) during the financial year: Title Effective Date MFRS 17 Insurance Contracts 1 January 2023 Amendments to MFRS 17 Initial Application of MFRS 17 and MFRS 9 - Comparative Information 1 January 2023 Amendments to MFRS 101 Disclosure of Accounting Policies 1 January 2023 Amendments to MFRS 108 Definition of Accounting Estimates 1 January 2023 Amendments to MFRS 112 Deferred tax related to Assets and Liabilities arising from a Single Transaction 1 January 2023 Amendments to MFRS 112 International Tax Reform – Pillar Two Model Rules Refer paragraph 98M of MFRS 112 Adoption of the above Standards and Amendments did not have any material effect on the financial performance or position of the Group and of the Company, other than the following: (a) MFRS 17 Insurance Contracts and Amendments to MFRS 17 Initial Application of MFRS 17 and MFRS 9 - Comparative Information MFRS 17 establishes the principles for recognition, measurement, presentation and disclosure of insurance contracts and supersedes MFRS 4 Insurance Contracts. MFRS 17 outlines three measurement approaches for different types of insurance contracts – general measurement model, premium allocation approach and variable fee approach. The general measurement model uses current assumptions to estimate the amount, timing and uncertainty of future cash flows and it explicitly measures the cost of that uncertainty. It takes into account market interest rates and the impact of options and guarantees of policyholders. The general measurement model is simplified if certain criteria are met by measuring the liability for remaining coverage using the premium allocation approach. Variable fee approach is applicable for insurance contracts with direct participation features. 160 GHL SYSTEMS BERHAD 199401007361 (293040-D)
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