BIMB Integrated Annual Report 2017

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 2.1 Basis of preparation (continued) (a) Statement of compliance (continued) (ii) Significant changes in regulatory requirements Companies Act 2016 The new Companies Act 2016 (“New Act”) was enacted to replace the Companies Act 1965 with the objectives to create a legal and regulatory structure that will facilitate business, and promote accountability as well as protection of corporate directors and shareholders, taking into consideration the interest of other stakeholders. The New Act became effective from 31 January 2017. Amongst the key changes introduced in the New Act are: (a) the removal of the authorised share capital; (b) the ordinary shares will cease to have par or nominal value; and (c) the share premium will become part of the share capital. During the financial year, the Company has transferred RM2,102,611,000 from share premium to its share capital pursuant to the transition provisions set out in Section 618(2) of the New Act. There is no impact on the number of ordinary shares in issue or the relative entitlement of any of the members as a result of the transfer of the amount from the share premium account to the share capital account. Revised Policy Document on Capital Funds for Islamic Banks issued by Bank Negara Malaysia (“BNM”) On 3 May 2017, BNM issued a revised policy document on Capital Funds for Islamic Banks (“Revised Policy Document”). The issuance of this Revised Policy Document has superseded two guidelines issued by BNM previously, namely Capital Funds and Capital Funds for Islamic Banks dated 1 July 2013. The key changes in the Revised Policy Document are: (a) the removal of the requirement on maintenance of a reserve fund; and (b) the revised component of capital funds shall exclude share premium and reserve fund. During the financial year, the Group has transferred RM1,124,774,000 from reserve fund to its retained earnings pursuant to the Revised Policy Document. (iii) MFRSs, Amendments to MFRSs and IC Interpretation that have been issued but are not yet effective to the Group and the Company The following are accounting standards, amendments and interpretations of the MFRS framework that have been issued by the Malaysian Accounting Standards Board (“MASB”) but have not been adopted by the Group and the Company. MFRSs, Interpretations and amendments effective for annual periods beginning on or after 1 January 2018 • MFRS 9, Financial Instruments (2014) • MFRS 15, Revenue from Contracts with Customers • Clarifications to MFRS 15, Revenue from Contracts with Customers • IC Interpretation 22, Foreign Currency Transactions and Advance Consideration NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2017 171 Overview Value Creation Accountability Financial Statements Sustainability Performance Data Shareholders Information 21 st AGM Information Management Discussion & Analysis