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162 KUMPULAN WANG PERSARAAN (DIPERBADANKAN) FoR BEttER REtURNS

notes to the
financial statements
for the year ended 31 december 2022

2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
2.13 Provisions (continued)

provisions are measured at the present value of the best estimate of the expected expenditures required to settle
the obligation using a pre-tax rate that reflects the current market assessment of the time value of money as well
as the risks specific to the obligation. the increase in the provision due to the passage of time is recognised as
finance cost expense.
provisions are reviewed at each reporting date and adjusted to reflect the current best estimates. reversal of
provisions is executed in the event where the outflow of economic resources required to settle the obligation is
no longer probable.

2.14 Borrowing Costs
borrowing costs are capitalised as part of the cost of a qualifying asset if they are directly attributable to the
acquisition, construction or production of the asset. capitalisation of borrowing costs commences upon the
execution of activities to prepare the asset for its intended use or the occurrence of expenditures and borrowing
cost when the sale is in progress. borrowing costs are capitalised until the substantial completion or interruption
of the activities necessary to prepare the asset for the intended use or sale of the asset.

investment income earned on the temporary investment of specific borrowings pending their expenditure on the
qualifying assets, is deducted from the borrowing cost eligible for capitalisation.

all other borrowing costs are recognised in profit or loss in the period they are incurred. borrowing costs consist
of interest and other costs incurred in connection to the borrowing of funds.

2.15 Revenue And Income Recognition

revenue and income are recognised to the extent that the inflow of economic benefits is probable and can
be reliably measured. revenue and income are measured at the fair value of the consideration received or
receivable.

(a) Dividend income

dividend income is recognised upon the establishment of the right to receive payment.
(b) Interest income

interest income for financial instruments designated at amortised cost and fVoci is calculated by applying
the effective interest rate to the gross carrying amount of a financial asset with the exception of financial
assets that were subsequently credit-impaired. for credit-impaired financial assets, the effective interest
rate is applied to the net carrying amount of the financial asset (after deduction of the loss allowance).

interest income for financial instruments designated at fVtpl is recognised based on contractual
agreements.