KENANGA ANNUAL REPORT 2017

49. SEGMENTAL REPORTING (CONT’D.) Notes A Additions to non-current assets consist of: 2017 RM’000 2016 RM’000 Property, plant and equipment – Additions during the financial year 17,452 176,484 Intangible assets – Additions during the financial year 200 1,061 17,652 177,545 B The following items are deducted from/(added to) segment assets to arrive at total assets reported in the consolidated statement of financial position: 2017 RM’000 2016 RM’000 Investment in subsidiaries (81,755) (76,741) Investment in associates and joint venture (3,536) 14,711 Intangible assets (40,095) (40,095) Inter-segment assets (81,589) (142,387) (206,975) (244,512) C The following items are deducted from segment liabilities to arrive at total liabilities reported in the consolidated statement of financial position: 2017 RM’000 2016 RM’000 Deposits accepted from subsidiaries (44,234) (69,550) Inter-segment liabilities (36,938) (72,660) (81,172) (142,210) 50. FINANCIAL RISK MANAGEMENT The Group and the Bank adopt a proactive and continuous approach in managing risk and has established a risk management framework to ensure that adequate policies and processes are in place to identify and manage risk within defined policies and guidelines approved by the Board of Directors. The Bank’s financial risks are centrally managed by the various committees within the delegated authority by the Board of Directors. These committees formulate, review and approve policies and limits to monitor and manage risk exposures under their respective supervision. The major policy decisions and proposals approved by these committees are subject to further review by Group Board Risk Committee and Board of Directors. The Risk Management Division assumes the independent oversight of risks undertaken by the Bank, and takes the lead in the formulation of risk policies, controls and processes. This is further enhanced by the periodic risk assessment audit carried out by the Bank’s Internal Audit. Kenanga Investment Bank Berhad 31 December 2017 178 notes to the financial statements