KENANGA ANNUAL REPORT 2020

134 5 1 2 3 4 6 7 FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS 31 December 2020 1. CORPORATE INFORMATION The Bank is principally engaged in the investment banking business, provision of stockbroking and related financial services. The Bank is a public limited liability company incorporated and domiciled in Malaysia and is listed on the Main Market of Bursa Malaysia Securities Berhad. The registered office of the Bank is located at Level 17, Kenanga Tower, 237, Jalan Tun Razak, 50400 Kuala Lumpur. The principal activities of the subsidiaries are described in Note 13. There have been no significant changes in the nature of the principal activities during the financial year. The financial statements of the Bank have been approved and authorised for issue in accordance with a resolution of the Board of Directors on 4 March 2021. 2. CHANGES IN ACCOUNTING POLICIES AND REGULATORY REQUIREMENT 2.1 New and amended Malaysian Financial Reporting Standards (“MFRSs”) adopted The accounting policies adopted are consistent with those of the previous financial year except for the adoption of the following new and amended MFRSs, which became effective for the Group and the Bank during the current financial year: Revised Conceptual Framework for Financial Reporting Amendments to MFRS 3: Definition of a Business Amendments to MFRS 9, MFRS 139 and MFRS 7: Interest Rate Benchmark Reform Amendments to MFRS 101 and MFRS 108: Definition of Material Interest Rate Benchmark Reform (Amendments to MFRS 9, MFRS 139 and MFRS 7) COVID-19-Related Rent Concessions (Amendment to MFRS 16 Leases) Extension of the Temporary Exemption from Applying MFRS 9 (Amendments to MFRS 4: Insurance Contracts) The adoption of the new and amended MFRSs did not have any significant impact on the financial position or performance of the Group and of the Bank other than the impacts disclosed below: 2.2 Revised Policy Documents on Capital Adequacy Frameworks and Capital Adequacy Frameworks for Islamic Banks (Capital Components) On 5 February 2020, BNM issued revised Policy documents on Capital Adequacy Framework and Capital Adequacy Framework for Islamic Banks (Capital Components) which came into effect immediately and shall be applied prospectively. The revised Policy documents apply to financial institutions in Malaysia which covers licensed banks, licensed Islamic banks, licensed investment banks, licensed banks carrying on Islamic banking business and financial holding companies. The revised Policy documents superseded Policy documents issued by BNM previously, namely Capital Adequacy Framework (Capital Components) and Capital Adequacy Framework for Islamic Banks (Capital Components) dated 2 February 2018. The revised Policy documents were updated to include additional capital buffer requirements on the Higher Loss Absorbency requirements for financial institution that is designated as a domestic systemically important banks. The application of the revised Policy documents do not have any significant impact to the financial statements of the Group and of the Bank.