Company: VCIG
Filing Date: 2025-05-13
Form Type: 20-F
Source: 0001213900-25-042476
Chunk: 136

Company: VCI Global Ltd
Filing Date: 2025-05-13
Form: 20-F
Item: Item 19
Chunk 136
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”). For those credit exposures
for which there has been a significant increase in credit risk since initial recognition, a loss allowance is recognised for credit losses
expected over the remaining life of the exposure, irrespective of timing of the default (a “lifetime ECL”).

For trade receivables, the Company applies
a simplified approach in calculating ECLs. Therefore, the Company does not track changes in credit risk, but instead recognises a lost
allowance based on lifetime ECLs at each reporting date. The Company has established a provision matrix that is based on its historical
credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment which could affect debtors’
ability to pay.

The Company considers a financial asset
in default when contractual payments are 211 days past due. However, in certain cases, the Company may also consider a financial asset
to be in default when internal or external information indicates that the Company is unlikely to receive the outstanding contractual amounts
in full before taking into account any credit enhancements held by the Company. A financial asset is written off when there is no reasonable
expectation of recovering the contractual cash flows.

PROPERTY AND EQUIPMENT

  (a)      Measurement  

  (i)      Property and equipment  

Property and equipment are initially
recognized at cost and subsequently carried at cost less accumulated depreciation and accumulated impairment losses.

  (ii)      Components of costs  

The cost of an item of property and
equipment initially recognized includes its purchase price and any cost that is directly attributable to bringing the asset to the location
and condition necessary for it to be capable of operating in the manner intended by management.

  (b)      Depreciation  

Depreciation on other items of property
and equipment is calculated using the straight-line method to allocate their depreciable amounts over their estimated useful lives as
followed;

  Office renovation           10 years  
  Office equipment            5 years   
  Furniture and fittings      5 years   
  Computer and software       10 years  
 ────────────────────────────────────────
  Right of use asset          3 years   

Work-in-progress is not depreciated as
these assets are not yet in use as at the end of the financial year.

The residual values estimated useful lives
and depreciation method of property and equipment are reviewed, and adjusted as appropriate, at each balance sheet date. The effects of
any revision are recognized in profit or loss when the changes arise.

  (c)      Sub