Company: VCIG
Filing Date: 2025-05-13
Form Type: 20-F
Source: 0001213900-25-042476
Chunk: 135

Company: VCI Global Ltd
Filing Date: 2025-05-13
Form: 20-F
Item: Item 19
Chunk 135
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the effective interest method.

The effective interest method is a method
of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective
interest rate is the rate that exactly discounts estimated future cash payments (including all fees and points paid or received that form
an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial
liability, or (where appropriate) a shorter period, to the amortised cost of a financial liability.

Derecognition of financial
liabilities

The Company derecognises financial liabilities
when, and only when, the Company’s obligations are discharged, cancelled or expired. The difference between the carrying amount
of the financial liability derecognised and the consideration paid and payable, including any non-cash assets transferred or liabilities
assumed, is recognised in profit or loss.

OFFSETTING FINANCIAL INSTRUMENTS

Financial assets and liabilities are
offset, and the net amount reported in the balance sheet when there is a legally enforceable right to offset and there is an intention
to settle on a net basis or realize the asset and settle the liability simultaneously.

WARRANT LIABILITIES

Warrant liabilities are initially recognised at fair value on the date
of issuance and subsequently carried at its fair value. Changes in fair value are recognised in the profit or loss. When the Company issues
equity instruments to extinguish all or part of the liability, a gain or loss is recognised in profit or loss, which is measured as the
difference between the carrying amount of financial liability and the fair value of the equity instruments issued.

F-15

IMPAIRMENT OF FINANCIAL ASSETS

The Company recognises provision for
allowance for expected credit losses (“ ECL”) for all debt instruments not held at FVPL. ECL are based on the difference between
the contractual cash flows due in accordance with the contract and all the cash flows that the Company expects to receive, discounted
at an approximation of the original effective interest rate. The expected cash flows will include cash flows from the sale of collateral
held or other credit enhancements that are integral to the contractual terms.

ECLs are recognised in two stages. For
credit exposures for which there has not been a significant increase in credit risk since initial recognition, ECLs are provided for credit
losses that result from default events that are possible within the next 12-months (a “12-month ECL