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172 KUMPULAN WANG PERSARAAN (DIPERBADANKAN) FoR BEttER REtURNS

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

2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
2.22 Fair Value Measurement (continued)

assets and liabilities for which the fair value is measured or disclosed in the financial statements are categorised
in accordance with the following fair value hierarchy, based on the lowest level of input significant to the fair value
measurement as a whole:

level 1: Quoted (unadjusted) market prices in active markets for identical assets or liabilities;
level 2: Valuation techniques for which the lowest level of input significant to the fair value measurement is
directly or indirectly observable; and
level 3: Valuation techniques for which the lowest level of input significant to the fair value measurement is
unobservable.
in relation to assets and liabilities recognised in the financial statements on a recurring basis, reassessment of
the categorisation is conducted to determine the occurrence of transfers of assets between the levels in the
hierarchy (based on the lowest level of input significant to the fair value measurement as a whole) at the reporting
date.
2.23 Contingent Assets And Contingent Liabilities

contingent assets are possible assets that arise from past events whereby the existence is confirmed by the
occurrence or non-occurrence of one or more uncertain future events beyond the control of the group and
KWap. there was no recognition of contingent assets, only disclosure of its existence whereby the inflow of
economic benefits is probable but virtually uncertain. contingent liabilities are possible obligations that arise from
past events whereby the existence is confirmed by the occurrence or non-occurrence of one or more uncertain
future events beyond the control of the group and KWap, or present obligations that are not recognised because
it is not probable that an outflow of resources will be required to settle the obligation. contingent liabilities may
also arise in the extremely rare case where a liability is not recognised due to its inability to be measured reliably.

there was no recognition of contingent liabilities, only its disclosure in the financial statements.
2.24 Offset Of Financial Instruments

financial assets and liabilities are offset whereby the net amount is presented in the statement of financial
position when there is a legally enforceable right to offset the recognised amounts as well as the intention to
settle on a net basis or to realise the asset and settle the liability simultaneously. the legally enforceable right
shall not be contingent on future events and shall be enforceable in the normal course of business as well as in
the event of default, insolvency or bankruptcy.

2.25 Allocation of Statutory Funds
KWap receives an allocation from the federal government in accordance with section 13 of the retirement fund
act 2007 (act 662).