Company: ARBB
Filing Date: 2025-10-31
Form Type: 20-F
Source: 0001213900-25-104705
Chunk: 123

Company: ARB IOT Group Ltd
Filing Date: 2025-10-31
Form: 20-F
Item: Item 19
Chunk 123
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 1 January  
          2026                                                          
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   3      Effective for annual/reporting periods beginning on or after  
          1 January 2027                                                
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   4      No mandatory effective date yet determined but available  

Except for IFRS 18, which the Group is currently working to identify
all impacts the new standard will have on the consolidated financial statements and notes to the consolidated financial statements, the
directors of the Group anticipate that the application of the new and amendments to IFRS Accounting Standards will have no material impact
on the Group’s financial positions and performance and/or on the disclosures to the Group in the foreseeable future.

Business combinations

Business combinations are accounted for using
the acquisition method with assets and liabilities acquired recorded at the acquisition date fair value. The cost of an acquisition is
measured as the aggregate of the consideration transferred, which is measured at acquisition date fair value and the amount of any non-controlling
interest (“ NCI”) share in the acquiree. For each business combination, the Group elects whether to measure NCI in the acquiree
at fair value or at the proportionate share of the acquiree’s identifiable net assets. Acquisition related costs are expensed as
incurred and included in and administrative expenses.

Principles of consolidation

Subsidiaries are all entities over which the Group
has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the
entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated
from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases.

F-12

2. MATERIAL ACCOUNTING POLICY INFORMATION (CONT’ D)

Principles of consolidation (Cont’d)

Upon loss of control of a subsidiary, the Group’s
profit or loss is calculated as the difference between the fair value of the consideration received and of any investment retained in
the former subsidiary and the previous carrying amount of the assets (including any goodwill) and liabilities of the subsidiary and any
non-controlling interests.

The principal place of business of the subsidiaries
are in Malaysia and/or incorporated in Malaysia unless indicated otherwise. The details of the subsidiaries are as follows:

                                                        Ownership Interest in equity