Company: VCIG
Filing Date: 2025-05-13
Form Type: 20-F
Source: 0001213900-25-042476
Chunk: 148

Company: VCI Global Ltd
Filing Date: 2025-05-13
Form: 20-F
Item: Item 19
Chunk 148
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 recognised in the period in which the estimate is revised
if the revision affects only that period, or in the period of the revision and future periods.

Critical judgements in applying the
Company’s accounting policies

There are no critical judgements, apart
from those involving estimation (see below) that the management has made in the process of applying the Company’s accounting policy
and that has the most significant effect on the amounts recognised in the financial statements.

Key sources of estimation uncertainty

The key assumptions
concerning the future and other key sources of estimation uncertainty at the end of the reporting period, that have a significant risk
of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are disclosed below:

Fair value measurement of unquoted shares (Note 4
and 5)

In determining the fair value of the
unquoted shares, the Company relies on the net asset values of the investee companies or independent valuation report.

The availability of observable inputs
can vary from investment to investment. For certain investments classified under Level 3 of the fair value hierarchy, the valuation could
be based on models or inputs that are less observable or unobservable in the market and the determination of the fair values require significant
judgement. Those estimated values do not necessarily represent the amounts that may be ultimately realized due to occurrence of future
events which could not be reasonably determined as at the balance sheet date.

Provision for allowance for ECL for trade receivables,
other receivables and loan receivables

The Company uses a provision matrix
to calculate ECLs for trade receivables, other receivables and loan receivables. The provision rates are based on days past due for groupings
of various customer segments that have similar loss patterns.

The provision matrix is initially based
on the Company’s historical observed default rates. The Company will calibrate the matrix to adjust historical credit loss experience
with forward- looking information. At every reporting date, historical default rates are updated and changes in the forward-looking estimates
are analysed.

The assessment of the correlation between
historical observed default rates, forecast economic conditions and ECLs is a significant estimate. The amount of ECLs is sensitive to
changes in circumstances and of forecast economic conditions. The Company’s historical credit loss experience and forecast of economic
conditions may also not be representative of customer’s actual default in the future.

The carrying amount of the Company’s
trade receivables, net of allowance, other receiv