Company: VCIG
Filing Date: 2025-05-13
Form Type: 20-F
Source: 0001213900-25-042476
Chunk: 74

Company: VCI Global Ltd
Filing Date: 2025-05-13
Form: 20-F
Item: Item 4A
Chunk 74
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 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.

Fair value of warrant liabilities

The Company accounts the warrants as financial
liabilities in accordance with IFRS 9 Financial Instruments and IFRS 13 Fair Value Measurement, where the terms of the instruments do
not meet the criteria for classification as equity under IAS 32 Financial Instruments: Presentation. The warrants are not considered equity
instruments because they are cash-settled and include features such as anti-dilution provisions, which prevent them from being considered
as “fixed-for-fixed” equity instruments.

These warrant liabilities are initially measured at fair value on the
date of issuance. After initial recognition, the warrant liabilities are remeasured at fair value at each reporting period, with changes
in fair value recognized through profit or loss in accordance with IFRS 9 Financial Instruments.

Trade and Other Receivables

A receivable is recognized when the group has
an unconditional right to receive consideration. A right to receive consideration is unconditional if only the passage of time is required
before payment of that consideration is due. If revenue has been recognized before the group has an unconditional right to receive consideration,
the amount is presented as a contract asset. Trade receivables that do not contain a significant financing component are initially measured
at their transaction price. Trade receivables that contain a significant financing component and other receivables are initially measured
at fair value plus transaction costs. All receivables are subsequently stated at amortised cost, using the effective interest method and
including an allowance for credit losses. As of December 31, 2024 and 2023, the allowance for doubtful debts are MYR2,097,071 and
MYR2,518,122, respectively.

Revenue Recognition

Revenue is recognized
to depict the transfer of promised services to clients at an amount that reflects the consideration to which an entity expects to be entitled