MFRS 120- Accounting for Government grant and Disclosure of Government Assistance According to MFRS 120, Government grant

is known as assistant in any kind of transferees resources to any firm in return for some past or future compliance with certain conditions relating to the operating a activities of the firm. In this topic, Government grant may be recognizing when the assistant form of resources complies with any condition attached to it and the entity actually had received the grand. To treat this transaction according MFRS 120, we have 2 approaches either CAPITAL APPROACH or INCOME APPROACH. However, DRB-hicom have use the income method in treat this kind of transaction. They also used the fair value of the received grant to recognize it1. (i) Grants relating to assets are included in non-current liabilities as deferred income and is amortised to profit or loss over the expected useful life of the relevant asset by equal annual instalment. (ii) Grants relating to costs are recognised immediately through profit or loss to match them with the costs incurred. (iii) Income grants are grants other than the above grants and recognised in the statements of comprehensive income where there is a reasonable assurance that the grant will be received and the Group will comply with all attached conditions.

MFRS 137 - PROVISIONS, CONTINGENT LIABILITIES & CONTINGENT ASSETS For this sub topic , we will split to 2 segment : provision and contingent PROVISION

DRB-HICOM Financial statement, page 106