KENANGA ANNUAL REPORT 2019

K E N A N G A I N V E S T M E N T B A N K B E R H A D A n n u a l R e p o r t 2 0 1 9 78 f. At its meeting held on 24 October 2019, the AC reviewed and recommended to the Board for approval, the External Auditors’ 2019 Audit Plan outlining their scope of work and proposed fees covering their recurring audit assignments, as well as other regulatory-related services. During the presentation of their 2019 Audit Plan, the External Auditors had also highlighted to the AC the developments in the financial reporting as summarised below. i. Amended Malaysian Financial Reporting Standards (“ MFRS ”) and Interpretations Committee (“ IC ”) Interpretations effective for annual period beginning on or after 1 January 2019 Description Effective Date MFRS 16 Leases 1 January 2019 IC Interpretation 23 Uncertainty over Income Tax Treatments 1 January 2019 Amendment to MFRS 9 – Prepayment Features with Negative Compensation 1 January 2019 Amendment to MFRS 119 – Plan Amendment, Curtailment or Settlement 1 January 2019 Amendment to MFRS 128 Investments in Associates and Joint Ventures – Long-term Interests in Associates and Joint Ventures 1 January 2019 Annual Improvement to MFRS Standards 2015-2017 Cycle 1 January 2019 ii. New and amended MFRSs issued but not yet effective Description Effective Date Revised Conceptual Framework for Financial Reporting 1 January 2020 MFRS 3 – Definition of a Business (Amendments to MFRS 3) 1 January 2020 MFRS 101 – Definition of Material (Amendments to MFRS 101) 1 January 2020 MFRS 108 – Definition of Material (Amendments to MFRS 108) 1 January 2020 MFRS 17 – Insurance Contracts 1 January 2021 MFRS 10 and MFRS 128 – Sale or Contribution of Assets between an Investor and its Associate or Joint Venture (Amendments to MFRS 10 and MFRS 128) To be announced by the Malaysian Accounting Standards Board g. On 30 January 2020, the GCFOO briefed the AC that the pre-approved tax fees and non-audit fees incurred and paid by KIBB Group to the External Auditors and their affiliate during the Financial Year Ended 31 December 2019 were RM250,032 or 52.3% and RM223,717 or 46.8% respectively, of KIBB Group recurring audit fees for the Financial Year Ended 31 December 2018. 3.3 Internal Audit a. The AC at its meeting on 30 January 2019 had reviewed and approved the 2019 Audit Plan tabled by Group Internal Audit (“ GIA ”) after considering the adequacy of scope and comprehensiveness of the coverage of activities within KIBB Group, as well as the adequacy of resources in the internal audit department. AUDIT COMMITTEE REPORT