AIA Bhd: Condensed Interim Financial Statements - 31 May 2017

Transcription

1. Company No . 790895 D AIA BHD. (Incorporated in Malaysia) UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 MAY 2017
2. Company No . 790895 D AIA BHD. (Incorporated in Malaysia) UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 MAY 2017 CONTENTS PAGES UNAUDITED CONDENSED STATEMENTS OF FINANCIAL POSITION UNAUDITED CONDENSED INCOME STATEMENTS UNAUDITED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME UNAUDITED CONDENSED STATEMENTS OF CHANGES IN EQUITY UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS 1 2-3 4 5-8 9 - 11 12 - 58
3. Company No . 790895 D AIA BHD. (Incorporated in Malaysia) UNAUDITED CONDENSED STATEMENTS OF FINANCIAL POSITION AS AT 31 MAY 2017 31.05.2017 RM’000 Group 30.11.2016 RM’000 31.05.2017 RM’000 Company 30.11.2016 RM’000 472,222 478,827 472,187 478,748 378,300 378,300 378,300 378,300 1,186 89,100 1,199 81,653 1,186 89,025 1,199 81,427 - - 163,000 163,000 65,583 50,297 88 88 11 7,801,559 7,939,844 7,754,777 7,878,116 12 35,176,219 4,985,874 224,548 33,368,348 4,862,926 126,896 35,176,219 4,954,437 224,548 33,368,348 4,839,000 126,896 324,920 391,597 324,920 391,597 681,761 691,018 648,157 672,882 50,201,272 48,370,905 50,186,844 48,379,601 Share capital Share premium Retained earnings Revaluation reserves Available-for-sale fair value reserves 767,438 683,452 2,666,920 28,478 767,438 683,452 3,312,334 28,478 767,438 683,452 2,708,912 28,478 767,438 683,452 3,352,770 28,478 16,995 (57,703) 15,239 (58,860) Total equity 4,163,283 4,733,999 4,203,519 4,773,278 38,673,210 633,832 5,845,058 5,114 880,775 36,719,862 470,131 5,678,975 36,272 731,666 38,647,996 633,832 5,845,058 5,403 851,036 36,694,843 470,131 5,678,975 36,544 725,830 Total liabilities 46,037,989 43,636,906 45,983,325 43,606,323 Total equity and liabilities 50,201,272 48,370,905 50,186,844 48,379,601 Note Assets Property, plant and equipment Investment properties Prepaid land lease payments Intangible assets Investment in subsidiaries Investment in an associate Available-for-sale financial assets Fair value through profit or loss financial assets Loan and receivables Reinsurance assets Insurance receivables Cash and cash equivalents 14 Total assets Equity and liabilities Insurance contract liabilities Deferred tax liabilities Insurance payables Current tax liabilities Other payables 15 The accompanying notes form an integral part of these financial statements. 1
4. Company No . 790895 D AIA BHD. (Incorporated in Malaysia) UNAUDITED CONDENSED INCOME STATEMENTS FOR THE HALF-YEAR ENDED 31 MAY 2017 31.05.2017 RM’000 Group 31.05.2016 RM’000 31.05.2017 RM’000 Company 31.05.2016 RM’000 Gross earned premiums Premiums ceded to reinsurers 4,240,151 (459,862) 3,990,770 (224,864) 4,240,151 (459,862) 3,990,770 (224,864) Net earned premiums 3,780,289 3,765,906 3,780,289 3,765,906 Investment income Net realised gains/(losses) Fair value gains Other operating income 1,067,541 4,004 1,311,794 27,421 1,022,522 (692) 240,091 19,251 1,066,075 3,995 1,311,794 23,934 1,020,680 (692) 240,091 17,430 Total net revenue 6,191,049 5,047,078 6,186,087 5,043,415 (3,249,788) 227,526 (3,135,441) 91,578 (3,249,788) 227,526 (3,135,441) 91,578 (1,958,660) (855,684) (1,958,465) (855,827) 97,935 11,271 97,935 11,271 (4,882,987) (3,888,276) (4,882,792) (3,888,419) Fee and commission expenses Management expenses (443,193) (419,253) (400,466) (396,508) (440,812) (416,656) (399,283) (393,657) Other expenses (862,446) (796,974) (857,468) (792,940) Gross benefits and claims paid Claims ceded to reinsurers Gross change to insurance contract liabilities Change in insurance contract liabilities ceded to reinsurers Net insurance benefits and claims 2
5. Company No . 790895 D AIA BHD. (Incorporated in Malaysia) UNAUDITED CONDENSED INCOME STATEMENTS FOR THE HALF-YEAR ENDED 31 MAY 2017 (CONTINUED) Profit before share of loss from associate Share of loss from associate 31.05.2017 RM’000 Group 31.05.2016 RM’000 31.05.2017 RM’000 Company 31.05.2016 RM’000 445,616 (1,656) 361,828 (1,052) 445,827 - 362,056 - Profit before tax Tax expense attributable to policyholders and unitholders 443,960 360,776 445,827 362,056 (157,322) (75,778) (157,322) (75,778) Profit before tax attributable to shareholders 286,638 284,998 288,505 286,278 (227,374) (143,583) (227,685) (143,182) 157,322 75,778 157,322 75,778 Tax expense attributable to shareholders (70,052) (67,805) (70,363) (67,404) Profit after tax for the period 216,586 217,193 218,142 218,874 Basic earnings per share (sen) 28.2 28.3 28.4 28.5 Tax expense Tax expense attributable to policyholders and unitholders The accompanying notes form an integral part of these financial statements. 3
6. Company No . 790895 D AIA BHD. (Incorporated in Malaysia) UNAUDITED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME FOR THE HALF-YEAR ENDED 31 MAY 2017 31.05.2017 RM’000 Group 31.05.2016 RM’000 31.05.2017 RM’000 Company 31.05.2016 RM’000 216,586 217,193 218,142 218,874 101,518 113,660 101,184 112,458 (4,004) (23,091) 723 (26,868) (3,995) (23,090) 723 (26,696) 74,423 87,515 74,099 86,485 275 175 - - - 176,376 (6,672) - 176,376 (6,672) - (142,292) - (142,292) - 27,412 - 27,412 Other comprehensive income - net of tax, for the period 74,698 115,102 74,099 113,897 Total comprehensive income for the period 291,284 332,295 292,241 332,771 Profit after tax for the period Other comprehensive income: Items that may be subsequently reclassified to profit or loss Net gains arising during the period Net realised (gains)/losses transferred to income statements Deferred taxation Change in available-for-sale fair value reserves Share of other comprehensive income from associate Items that will not be subsequently reclassified to profit or loss Net gains arising during the period Deferred taxation Change in insurance contract liabilities Change in asset revaluation reserves The accompanying notes form an integral part of these financial statements. 4
7. Company No . 790895 D AIA BHD. (Incorporated in Malaysia) UNAUDITED CONDENSED STATEMENTS OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 31 MAY 2017 Attributable to equity holders of the Company Group At 1 December 2016 Profit for the period Other comprehensive income for the period Total comprehensive income for the period Share based compensation: value of employee services Share based compensation: repayment to ultimate parent company Dividend paid for the financial year ended 30 November 2016 At 31 May 2017 Available-forsale fair value reserves RM’000 Revaluation reserves RM’000 Share-based reserves RM’000 Retained earnings* RM’000 Total RM’000 (57,703) 74,698 74,698 28,478 - - 3,312,334 4,733,999 216,586 216,586 216,586 74,698 291,284 - - 6,716 - 6,716 - - - (6,716) - (6,716) - - - - - (862,000) (862,000) 767,438 683,452 16,995 28,478 - 2,666,920 4,163,283 Share capital RM’000 Share premium RM’000 767,438 683,452 - - - - - 5
8. Company No . 790895 D AIA BHD. (Incorporated in Malaysia) UNAUDITED CONDENSED STATEMENTS OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 31 MAY 2017 (CONTINUED) Attributable to equity holders of the Company Group At 1 December 2015 Profit for the period Other comprehensive income for the period Total comprehensive income for the period Share based compensation: value of employee services Share based compensation: repayment to ultimate parent company Dividend paid for the financial year ended 30 November 2015 At 31 May 2016 Share capital RM’000 Share premium RM’000 Available-for sale fair value reserves RM’000 Revaluation reserves RM’000 Share-based reserves RM’000 Retained earnings* RM’000 Total RM’000 767,438 683,452 (4,725) - - 3,172,200 4,618,365 - - 87,690 87,690 27,412 27,412 - 217,193 217,193 217,193 115,102 332,295 - - - - 5,688 - 5,688 - - - - (5,688) - (5,688) - - - - - (752,000) (752,000) 767,438 683,452 82,965 27,412 - 2,637,393 4,198,660 * Included in retained earnings is RM2,648 million (2016: RM2,460 million) which comprise surplus from the Life Non-Participating Fund (net of deferred tax). This amount is only distributable to the shareholders upon the actual transfer of surplus from the Life Non-Participating Fund to the Shareholder’s Fund as approved by the Appointed Actuary and Board of Directors of the Company. 6
9. Company No . 790895 D AIA BHD. (Incorporated in Malaysia) UNAUDITED CONDENSED STATEMENTS OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 31 MAY 2017 (CONTINUED) Attributable to equity holders of the Company Company At 1 December 2016 Profit for the period Other comprehensive income for the period Total comprehensive income for the period Share based compensation: value of employee services Share based compensation: repayment to ultimate parent company Dividend paid for the financial year ended 30 November 2016 At 31 May 2017 Share capital RM’000 Share premium RM’000 Available-forsale fair value reserves RM’000 Revaluation reserves RM’000 Share-based reserves RM’000 Retained earnings* RM’000 Total RM’000 767,438 683,452 (58,860) 28,478 - 3,352,770 4,773,278 - - 74,099 74,099 - - 218,142 218,142 218,142 74,099 292,241 - - - - 6,716 - 6,716 - - - - (6,716) - (6,716) - - - - - (862,000) (862,000) 767,438 683,452 15,239 28,478 - 2,708,912 4,203,519 7
10. Company No . 790895 D AIA BHD. (Incorporated in Malaysia) UNAUDITED CONDENSED STATEMENTS OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 31 MAY 2017 (CONTINUED) Attributable to equity holders of the Company Company At 1 December 2015 Profit for the period Other comprehensive income for the period Total comprehensive income for the period Share based compensation: value of employee services Share based compensation: repayment to ultimate parent company Dividend paid for the financial year ended 30 November 2015 At 31 May 2016 Share capital RM’000 Share premium RM’000 Available-forsale fair value reserves RM’000 Revaluation reserves RM’000 Share-based reserves RM’000 Retained earnings* RM’000 Total RM’000 767,438 683,452 (5,298) - - 3,209,752 4,655,343 - - 86,485 86,485 27,412 27,412 - 218,874 218,874 218,874 113,897 332,771 - - - - 5,688 - 5,688 - - - - (5,688) - (5,688) - - - - - (752,000) (752,000) 767,438 683,452 81,187 27,412 - 2,676,626 4,236,114 * Included in retained earnings is RM2,648 million (2016: RM2,460 million) which comprise surplus from the Life Non-Participating Fund (net of deferred tax). This amount is only distributable to the shareholders upon the actual transfer of surplus from the Life Non-Participating Fund to the Shareholder’s Fund as approved by the Appointed Actuary and Board of Directors of the Company. 8
11. Company No . 790895 D AIA BHD. (Incorporated in Malaysia) UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS FOR THE HALF-YEAR ENDED 31 MAY 2017 31.05.2017 RM’000 Group 31.05.2016 RM’000 31.05.2017 RM’000 Company 31.05.2016 RM’000 286,638 284,998 288,505 286,278 157,322 75,778 157,322 75,778 (1,080,172) (4,004) (1,311,794) (1,035,887) 723 (240,091) (1,078,706) (3,995) (1,311,794) (1,034,025) 723 (240,091) 15,916 15,000 15,872 14,632 13 7,172 12 6,302 13 7,021 12 6,302 75 159 75 159 (12) (189) (12) (189) 4,686 1,656 (1,173) 1,052 4,686 - (1,173) - - 2,905 - 2,905 (273,022) (97,652) (310,750) (10,383) (288,227) (97,652) (310,750) (10,383) 67,344 88,271 67,344 88,271 (98,081) 166,083 (90,325) 193,885 (90,570) 166,083 (75,322) 193,885 1,953,348 149,109 (199,832) 854,552 1,953,153 125,206 (191,482) 854,699 (55,375) (364,993) (85,676) (339,771) CASH FLOWS FROM OPERATING ACTIVITIES Profit before taxation Tax expense attributable to policyholders and unitholders Rental, interest and dividend income Realised (gains)/losses Fair value gains Depreciation - property, plant and equipment Amortisation - prepaid land lease payments - intangible assets Write off of property, plant and equipment Gains on sale of property, plant and equipment Allowance/(reversal of allowance) for impairment losses Share of loss from associate Impairment losses on properties held for own use Changes in working capital: Increase in AFS and FVTPL financial assets Increase in reinsurance assets Decrease in insurance receivables Increase in loans and receivables Increase in insurance payables Increase/(decrease) in insurance contract liabilities Increase in other payables Cash used in operating activities 9
12. Company No . 790895 D AIA BHD. (Incorporated in Malaysia) UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS FOR THE HALF-YEAR ENDED 31 MAY 2017 (CONTINUED) 31.05.2017 RM’000 Group 31.05.2016 RM’000 31.05.2017 RM’000 Company 31.05.2016 RM’000 (118,231) 894,414 158,935 13,659 (120,977) 878,815 133,920 14,332 (118,215) 892,565 158,935 13,659 (121,016) 877,008 133,920 14,332 893,402 541,097 861,268 564,473 (14,619) (11,643) (14,619) (11,643) (9,389) (12,372) (9,389) (12,364) 15 189 15 189 (16,667) - - - (40,660) (23,826) (23,993) (23,818) CASH FLOWS FROM OPERATING ACTIVITIES (CONTINUED) Income tax paid Interest income received Dividend income received Rental income received Net cash inflows from operating activities CASH FLOWS FROM INVESTING ACTIVITIES Purchase of intangible assets Purchase of property, plant and equipment Proceed from disposal of property, plant and equipment Increase in investment in associate Net cash outflows from investing activities 10
13. Company No . 790895 D AIA BHD. (Incorporated in Malaysia) UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS FOR THE HALF-YEAR ENDED 31 MAY 2017 (CONTINUED) 31.05.2017 RM’000 Group 31.05.2016 RM’000 31.05.2017 RM’000 Company 31.05.2016 RM’000 Decrease in obligation on securities sold under repurchase agreements Dividend paid (862,000) 49,676 (752,000) (862,000) 49,676 (752,000) Net cash outflows from financing activities (862,000) (702,324) (862,000) (702,324) (9,258) (185,053) (24,725) (161,669) CASH AND CASH EQUIVALENTS AT 1 DECEMBER 691,019 744,058 672,882 713,699 CASH AND CASH EQUIVALENTS AT 30 NOVEMBER 681,761 559,005 648,157 552,030 271,091 276,091 267,137 272,992 410,670 414,927 381,020 399,890 681,761 691,018 648,157 672,882 CASH FLOWS FROM FINANCING ACTIVITIES NET (DECREASE)/ INCREASE IN CASH AND CASH EQUIVALENTS Cash and cash equivalents comprised: Cash and bank balances Fixed and call deposits with licensed financial institutions The Group and Company classifies cash flows from the acquisition and disposal of financial assets as operating cash flows as the purchases are funded from cash flows associated with the origination of insurance contracts, net of cash flows for payments of benefits and claims incurred for insurance contracts, which are respectively treated under the operating activities. 11
14. Company No . 790895 D AIA BHD. (Incorporated in Malaysia) NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 MAY 2017 1 CORPORATE INFORMATION The Company is engaged principally in the underwriting of life insurance business, including investmentlinked business, and all classes of general insurance business. The principal activities of the subsidiaries are managing investment assets holding and managing private retirement scheme and asset management business. There have been no significant changes in these activities during the financial period. The Company is a public limited liability company, incorporated on 4 October 2007 under the Companies Act, 2016 and Financial Services Act, 2013 (“FSA”) and domiciled in Malaysia. The registered office and principal place of business of the Company are located at Level 29, Menara AIA, 99 Jalan Ampang, 50450 Kuala Lumpur and Menara AIA, 99 Jalan Ampang, 50450 Kuala Lumpur respectively. The immediate holding company of the Company is Premium Policy Berhad, whose ultimate holding company is AIA Group Limited, a company incorporated in Hong Kong and listed on The Stock Exchange of Hong Kong Limited. The interim financial statements are authorised for issue by the Board of Directors on 19 July 2017. 2 BASIS OF PREPARATION The condensed interim financial statements of the Group and the Company are unaudited and have been prepared in accordance with the Malaysian Financial Reporting Standards (“MFRS”) 134 Interim Financial Reporting. The Group and the Company have adopted the MFRS framework issued by the Malaysian Accounting Standards Board (“MASB”) and Revised Guidelines on Financial Reporting for Insurers issued by Bank Negara Malaysia (“BNM”). The condensed interim financial statements do not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the Group’s consolidated audited financial statements for the financial year ended 30 November 2016. 3 SIGNIFICANT ACCOUNTING POLICIES The accounting policies and presentation adopted by the Group and the Company for the condensed interim financial statements are consistent with those adopted by the Group’s consolidated audited financial statements for the financial year ended 30 November 2016, except for the adoption of the following: 12
15. Company No . 790895 D AIA BHD. (Incorporated in Malaysia) NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 MAY 2017 (CONTINUED) 3 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 3.1 Standards, amendments to published standards and interpretations to existing standards that are effective and relevant to the Group's financial year beginning on or after 1 December 2016 On 1 December 2016, the Group adopted the following accounting standards, amendments and interpretations to existing standards that have been issued by the Malaysian Accounting Standards Board (“MASB”):     3.2 Amendments to MFRS 127 “Equity Method in Separate Financial Statements” Annual Improvements to MFRSs 2012 – 2014 Cycle (Amendments to MFRS 5 “Noncurrent Assets Held for Sale and Discontinued Operations”, MFRS 7 “Financial Instruments: Disclosures”, MFRS 119 “Employee Benefits” and MFRS 134 “Interim Financial Reporting”) Amendments to MFRS 10, 12 and 128 “Investment Entities – Applying the Consolidation Exception” Amendments to MFRS 101 “Presentation of Financial Statements – Disclosure Initiative” Standards, amendments to published standards and interpretations to existing standards that are relevant to the Group but not yet effective and have not been early adopted The Group will apply the new standards, amendments to standards and interpretations in the following period: Financial year beginning on/after 1 December 2017  Amendments to MFRS 107 ‘Statement of Cash Flows – Disclosure Initiative’ (effective from 1 January 2017) introduce an additional disclosure on changes in liabilities arising from financing activities.  Amendments to MFRS 112 ‘Income Taxes - Recognition of Deferred Tax Assets for Unrealised Losses’ (effective from 1 January 2017) clarify the requirements for recognising deferred tax assets on unrealised losses arising from deductible temporary differences on assets carried at fair value. In addition, in evaluating whether an entity will have sufficient taxable profits in future periods against which deductible temporary differences can be utilised, the amendments require an entity to compare the deductible temporary differences with future taxable profits that excludes tax deductions resulting from the reversal of those temporary differences. The amendments shall be applied retrospectively. 13
16. Company No . 790895 D AIA BHD. (Incorporated in Malaysia) NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 MAY 2017 (CONTINUED) 3 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 3.2 Standards, amendments to published standards and interpretations to existing standards that are relevant to the Group but not yet effective and have not been early adopted (continued) The Group will apply the new standards, amendments to standards and interpretations in the following period: (continued) Financial year beginning on/after 1 December 2018  MFRS 9, ‘Financial Instruments - Classification and Measurement of Financial Assets and Financial Liabilities’ (effective from 1 January 2018) MFRS 9 retains but simplifies the mixed measurement model in MFRS 139 and establishes three primary measurement categories for financial assets: amortised cost, fair value through profit or loss and fair value through other comprehensive income (“OCI”). The basis of classification depends on the entity’s business model and the contractual cash flow characteristics of the financial asset. Investments in equity instruments are always measured at fair value through profit or loss with an irrevocable option at inception to present changes in fair value in OCI (provided the instrument is not held for trading). A debt instrument is measured at amortised cost only if the entity is holding it to collect contractual cash flows and the cash flows represent principal and interest. For liabilities, the standard retains most of the MFRS 139 requirements. These include amortised cost accounting for most financial liabilities, with bifurcation of embedded derivatives. The main change is that, in cases where the fair value option is taken for financial liabilities, the part of a fair value change due to an entity’s own credit risk is recorded in other comprehensive income rather than the income statement, unless this creates an accounting mismatch. MFRS 9 introduces an expected credit losses model on impairment for certain financial assets that replaces the incurred loss impairment model used in MFRS 139. The expected credit losses model is forward-looking and eliminates the need for a trigger event to have occurred before credit losses are recognised.  The amendments to MFRS 4 (“Insurance Contracts”) allows two alternatives to address the transitional challenges from different effective dates of MFRS 9 and the proposed new standard on insurance contracts. The amendment introduced two additional voluntary options, namely an overlay approach and a deferral approach to be applied subject to certain criteria being met, which help to address temporary volatility in reported results of entities dealing with insurance contracts. The overlay approach involves option to recognise the possible volatility in other comprehensive income, instead of profit or loss, whilst the deferral approach provides temporary exemption from applying MFRS 9 for entities whose activities are predominantly connected with insurance contracts until the earlier of the effective date of the proposed new standard on insurance contracts and the annual reporting periods beginning on or after 1 January 2021. 14
17. Company No . 790895 D AIA BHD. (Incorporated in Malaysia) NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 MAY 2017 (CONTINUED) 3 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 3.2 Standards, amendments to published standards and interpretations to existing standards that are relevant to the Group but not yet effective and have not been early adopted (continued) The Group will apply the new standards, amendments to standards and interpretations in the following period: (continued) Financial year beginning on/after 1 December 2019  MFRS 15 ‘Revenue from contracts with customers’ (effective from 1 January 2018) replaces MFRS 118 ‘Revenue’ and MFRS 111 ‘Construction contracts’ and related interpretations. The standard deals with revenue recognition and establishes principles for reporting useful information to users of financial statements about the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. Revenue is recognised when a customer obtains control of a good or service and thus has the ability to direct the use and obtain the benefits from the good or service. The core principle in MFRS 15 is that an entity recognises revenue to depict the transfer of promised goods or services to the customer in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.  MFRS 16 ‘Leases’ (effective from 1 January 2019) supersedes MFRS 117 ‘Leases’ and the related interpretations. Under MFRS 16, a lease is a contract (or part of a contract) that conveys the right to control the use of an identified asset for a period of time in exchange for consideration. MFRS 16 eliminates the classification of leases by the lessee as either finance leases (on balance sheet) or operating leases (off balance sheet). MFRS 16 requires a lessee to recognise a “right-of-use” of the underlying asset and a lease liability reflecting future lease payments for most leases. The right-of-use asset is depreciated in accordance with the principle in MFRS 116 ‘Property, Plant and Equipment’ and the lease liability is accreted over time with interest expense recognised in the income statement. For lessors, MFRS 16 retains most of the requirements in MFRS 117. Lessors continue to classify all leases as either operating leases or finance leases and account for them differently. The Group is reviewing the adoption of the above accounting standards, amendments to published standards and interpretation to existing standards and will complete the process prior to the reporting requirement deadline. The Group has not finalised any impact on the financial statements on the adoption of the above accounting standards. All other new amendments to published standards and interpretations to existing standards issued by MASB effective for financial periods subsequent to 1 December 2017 are not relevant to the Group. 15
18. Company No . 790895 D AIA BHD. (Incorporated in Malaysia) NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 MAY 2017 (CONTINUED) 4 SEASONALITY OR CYCLICALITY The business operations of the Group and of the Company were not significantly affected by seasonality or cyclical factors during the interim financial period. 5 UNUSUAL ITEMS There were no unusual items affecting assets, liabilities, equity, net income or cash flows for the current financial period ended 31 May 2017. 6 CHANGES IN ESTIMATES There were no material changes in the basis used for the accounting estimates for the current financial period ended 31 May 2017. 7 ISSUES, REPURCHASES AND REPAYMENTS OF DEBT AND EQUITY SECURITIES There were no issuance, cancellation, repurchase and repayment of debt and equity securities during the current financial period ended 31 May 2017. 8 DIVIDEND PAID During the half-year ended 31 May 2017, a final single tier dividend of 112.32% on 767,438,174 ordinary shares in respect of the financial year ended 30 November 2016, amounting to RM862,000,000 was paid on 12 May 2017 and 15 May 2017 respectively. 9 CHANGES IN THE COMPOSITION OF THE GROUP There was no change in the composition of the Group and the Company during the period under review. 10 MATERIAL EVENTS SUBSEQUENT TO THE END OF THE PERIOD There is no material event subsequent to the end of the period under review that has not been reported in the interim financial statements for the current financial period to date. 16
19. Company No . 790895 D AIA BHD. (Incorporated in Malaysia) NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 MAY 2017 (CONTINUED) 11 AVAILABLE-FOR-SALE FINANCIAL ASSETS 31.05.2017 RM’000 Group 30.11.2016 RM’000 31.05.2017 RM’000 Company 30.11.2016 RM’000 1,812,864 374,935 1,817,364 467,825 1,787,436 374,935 1,812,210 467,825 5,422,188 4,625 103,410 83,537 5,460,004 4,625 103,230 86,796 5,401,125 4,625 103,410 83,246 5,404,108 4,625 103,230 86,118 7,801,559 7,939,844 7,754,777 7,878,116 7,939,844 889,674 (108,910) (1,011,107) 7,978,051 823,347 (298,355) (485,855) 7,878,116 837,917 (108,910) (944,467) 7,916,446 823,948 (298,355) (485,855) 97,514 (3,259) (2,197) (69,525) (2,848) (4,971) 97,189 (2,872) (2,196) (70,282) (2,856) (4,930) At 31 May/30 November 7,801,559 7,939,844 7,754,777 7,878,116 Current Non current 192,657 7,608,902 346,840 7,593,004 192,730 7,562,047 346,161 7,531,955 7,801,559 7,939,844 7,754,777 7,878,116 At fair value Malaysian government securities Cagamas papers Unquoted corporate debt securities Unquoted equity securities Deposits with licensed bank Accrued interest Carrying values of financial instruments At 1 December Purchases Maturities Disposals at amortised cost Fair value gains/(losses) recorded in: Other comprehensive income Movement in accrued interest Net amortisation of premiums 17
20. Company No . 790895 D AIA BHD. (Incorporated in Malaysia) NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 MAY 2017 (CONTINUED) 11 AVAILABLE-FOR-SALE FINANCIAL ASSETS (CONTINUED) Fair value of financial assets The following tables show the financial assets recorded at fair values analysed by the different basis of fair values as follows: Group Carrying amount RM’000 Level 1 RM’000 Level 2 RM’000 Level 3 RM’000 Malaysian government securities Cagamas papers Unquoted equity securities Unquoted corporate debt securities Deposits with licensed bank Accrued interest 1,812,864 374,935 4,625 5,422,188 103,410 83,537 - 1,812,864 374,935 5,422,188 103,410 83,537 4,625 - Total assets on a recurring fair value measurement basis 7,801,559 - 7,796,934 4,625 Malaysian government securities Cagamas papers Unquoted equity securities Unquoted corporate debt securities Deposits with licensed bank Accrued interest 1,817,364 467,825 4,625 5,460,004 103,230 86,796 - 1,817,364 467,825 5,460,004 103,230 86,796 4,625 - Total assets on a recurring fair value measurement basis 7,939,844 - 7,935,219 4,625 Carrying amount RM’000 Level 1 RM’000 Level 2 RM’000 Level 3 RM’000 Malaysian government securities Cagamas papers Unquoted equity securities Unquoted corporate debt securities Deposits with licensed bank Accrued interest 1,787,436 374,935 4,625 5,401,125 103,410 83,246 - 1,787,436 374,935 5,401,125 103,410 83,246 4,625 - Total assets on a recurring fair value measurement basis 7,754,777 - 7,750,152 4,625 At 31 May 2017 At 30 November 2016 Company At 31 May 2017 18