Affin Bank Berhad | Annual Report 2020

418 ORGANISATION EXECUTIVE SUMMARY CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION 59 COMPARATIVE INFORMATION As disclosed in Note G, the Group has changed its accounting policy where certain benefits paid to employees are considered incremental and directly attributable to the disposal of the quoted shares. Therefore, these benefits paid can be treated as transaction costs when determining the gain or loss on disposal of the quoted shares. These expenses were previously recognised as employee costs under MFRS 119 ‘Employee Benefits’. In accordance with MFRS 108 ‘Accounting Policies, Changes in Estimates and Errors’, the change in accounting policy has been accounted for retrospectively. The change in accounting policy resulted in the following changes in the income statement, Note 40 and Note 42 to the financial statements as set out below. The statements of financial position, comprehensive income, cash flows and changes in equity of the Group and the Bank are not impacted by the change in accounting policy. As previously As reported Reclassification Restated The Group 31.12.2019 31.12.2019 31.12.2019 Income statements (Extract) Net gains on financial instruments 287,088 (17,334) 269,754 Net income 1,931,750 (17,334) 1,914,416 Other operating expenses (1,223,933) 17,334 (1,206,599) Note 40 - Net gains on financial instruments (Extract) Gains/(loss) arising on financial assets at FVTPL - net gain on disposal 62,096 (17,334) 44,762 Note 42 - Other operating expenses (Extract) Personnel costs - Wages, salaries and bonuses 604,862 (17,334) 587,528 60 SIGNIFICANT EVENT DURING THE FINANCIAL YEAR The World Health Organisation declared the outbreak of Covid-19 as a global pandemic in March 2020. The direct and indirect effects of the Covid-19 outbreak have impacted the global economy, markets and the Group’s and Bank’s counterparties and clients. The Covid-19 effects have a material negative impact on the Group’s and the Bank’s results. In particular, the process to determine expected credit losses (‘ECL’) requires numerous estimates and assumptions, some of which require a high degree of judgement. Changes in the estimates and assumptions can result in significant changes in ECL. The Group and the Bank are unable to predict the Covid-19’s potential future direct or indirect effects. However, the Group and the Bank are taking actions to mitigate the impacts, and will continue to closely monitor the impact and the related risks as they evolve. 61 SIGNIFICANT EVENT SUBSEQUENT TO THE FINANCIAL YEAR The Government of Malaysia reintroduced the movement control order to curb the soaring number of Covid-19 cases from 13 January 2021 until 4 March 2021. The movement control order may have a negative impact on the Group’s and the Bank’s results, as highlighted in Note 60. The Group and the Bank are not able to predict the potential future direct or indirect effects resulted from the movement control order. However, the Group and the Bank are taking actions to mitigate the impacts, and will continue to closely monitor the impact and the related risks as they evolve. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020