Kenanga Investment Bank Berhad Annual Report 2021 184 Our Sustainability Approach About This Report We Are Kenanga Message From Chairman and GMD 3. ACCOUNTING POLICIES (CONT’D.) 3.4 Summary of significant accounting policies (cont’d.) (s) Income recognition (cont’d.) (iii) Fee and other income Brokerage fees are recognised on contract date upon execution of trade on behalf of clients computed based on a pre-determined percentage of the contract value. Loan arrangement fees and commissions, management and participation fees, underwriting fees and placement fees are recognised as income when all conditions precedent are fulfilled. Custodian fees, guarantee fees and fund management fees are recognised as income based on time apportionment basis. Corporate advisory fees are recognised as income on the completion of each stage of the assignment. Rollover fee is recognised upon the rollover of specific contracts under share margin financing. Gain or loss on disposal of investments is recognised upon the transfer of risks and rewards of ownership. (iv) Islamic banking income Income from Islamic banking scheme is recognised on an accrual basis in accordance with Shariah principles. (v) Other income Dividend income is recognised when the right to receive the payment is established. All other income items are recognised on an accrual basis. (t) Interest, financing and profit expense Interest expense on deposits from customers, placements of financial institutions and borrowings is recognised using EIR. (u) Foreign currency (i) Foreign currency transactions Transactions in foreign currencies are measured in the respective functional currencies of the Group and the Bank and recorded on initial recognition in the functional currencies at exchange rates approximating those ruling at the transaction dates. Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the reporting date. Non-monetary items denominated in foreign currencies that are measured at historical cost are translated using the exchange rates as at the dates of the initial transactions. Non-monetary items denominated in foreign currencies measured at fair value are translated using the exchange rates at the date when the fair value was determined. Notes to the Financial Statements 31 December 2021
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