Page 199 - KWAP_Integrated-Report_2023

ENRICHING STAKEHOLDER ASPIRATIONS ENRICHING PERFORMANCE ENRICHING THE COMMUNITY ENRICHING ACCOUNTABILITY & INTEGRITY ENRICHING RESILIENCE & SUSTAINABLE GROWTH

notes to tHe financial statements

for the year ended 31 december 2023

17. DEBT iNSTRUMENTS AT FAiR VALUE THROUGH OTHER COMPREHENSiVE iNCOME (CONTiNUED)
(b) Movements in allowance for debt instruments at FVOCi

Lifetime
Expected
Credit Losses
12-months (Collectively
Expected Assessed
Credit - Not Credit
Losses impaired) Total
Debt instruments At FVOCi RM’000 RM’000 RM’000

At 1 January 2022 109 65,756 65,865
changes due to financial assets recognised in
the opening balance that have:
- transferred to lifetime ecl not
credit impaired – collective provision 59,321 (59,321) -
net remeasurement of loss allowance (59,408) (435) (59,843)
new financial assets originated or purchased 1 - 1
financial assets that have been derecognised (8) (895) (903)
At 31 December 2022/1 January 2023 15 5,105 5,120
net remeasurement of loss allowance (78) 33,472 33,394
new financial assets originated or purchased 6,042 - 6,042
financial assets that have been derecognised 71 328 399
At 31 December 2023 6,050 38,905 44,955

there was no undiscounted ecl at the initial recognition of credit-impaired financial assets purchased during
the year.

(c) impact of movements in the gross carrying amount on allowance for impairment losses
allowance for impairment losses reflected the ecl measured using the three (3) stage approach under the
mfrs 9, as described in the material accounting policies section. the following explanation relates to the
contribution of the significant changes in the gross carrying amount of debt instruments at fVoci during the year
to the changes in the allowance for impairment losses for the group and KWap under the ecl model.
overall, the total allowance for impairment losses increased by rm39.8 million compared to the opening balance
at the beginning of the year. the net increase was driven by the movement of the calculated provision from the
previously recognised 12-months expected credit loss to the lifetime expected credit loss.

the gross carrying amount of debt instruments at fVoci increased primarily due to the following:

• purchases made during the year;
• changes due to modification during the year; and
• derecognition during the year.

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