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AFI ANNUAL REPORT 2020
NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2020 1. GENERAL INFORMATION The Alliance For Financial Inclusion (“the Organisation”) is managed by the Management Unit of the Alliance For Financial Inclusion. The Alliance For Financial Inclusion is an organisation registered under the International Organisations (Privileges and Immunities) Act 1992 in Malaysia. The registered office of the Organisation is located at 2, Jalan Dato Onn, Kuala Lumpur, 50480 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur. The financial statements were authorised for issue in accordance with Board of Directors meeting on 10 June 2021.
2. PRINCIPAL ACTIVITIES The Organisation is principally engaged in the activities of promoting and developing evidence-based policy solutions that help to improve the lives of the poor. There have been no significant changes in the nature of these activities during the financial year.
3. BASIS OF PREPARATION The financial statements of the Organisation set out on pages 5 to 35 have been prepared in accordance with Malaysian Financial Reporting Standards (“MFRSs”), International Financial Reporting Standards (“IFRSs”) and the provisions International Organisation (Privileges and Immunities) Act 1992 in Malaysia. The accounting policies adopted are consistent with those of the previous financial year except for the effects of the adoption of new MFRSs during the financial year. The new MFRSs and Amendments to MFRSs adopted during the financial year are disclosed in Note 5 to the financial statements. The financial statements of the Organisation have been prepared under the historical cost convention except as otherwise stated in the financial statements.
4. SIGNIFICANT ACCOUNTING POLICIES 4.1 PROPERTY, PLANT AND EQUIPMENT (i) Recognition and measurement Items of property, plant and equipment are measured at cost less any accumulated depreciation and any accumulated impairment losses. Cost includes expenditures that are directly attributable to the acquisition of the asset and any other costs directly attributable to bringing the asset to working condition for its intended use, and the costs of dismantling and removing the items and restoring the site on which they are located. When significant parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment. The gain or loss on disposal of an item of property, plant and equipment is determined by comparing the proceeds from disposal with the carrying amount of property, plant and equipment and is recognised net within “other income” and “other expenses” respectively in profit or loss. (ii) Subsequent costs The cost of replacing a component of an item of property, plant and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefits embodied within the component will flow to the Organisation, and its cost can be measured reliably. The carrying amount of the replaced component is derecognised to profit or loss. The costs of the day-to-day servicing of property, plant and equipment are recognised in profit or loss as incurred. (iii) Depreciation Depreciation is based on the cost of an asset less its residual value. Significant components of individual assets are assessed, and if a component has a useful life that is different from the remainder of that asset, then that component is depreciated separately. Depreciation is recognised in profit or loss on a straightline basis over the estimated useful lives of each component of an item of property, plant and equipment from the date they are available for use. The principal annual rates used for this purpose are as follows: > Motor vehicles
20%
> Office equipment
20%
