Group Company 2023 RM’million 2022 RM’million 2023 RM’million 2022 RM’million (b) Finance cost: Finance cost on: - Borrowings (Note 26) 2,947.4 2,692.5 1,369.2 1,247.8 - Lease liabilities (Note 15) 1,636.5 1,756.4 4,043.7 4,239.3 - Consumer deposits 197.0 183.8 187.7 175.1 - Others 16.5 24.1 143.1 52.8 Release of government grants (Note 27) (18.3) (24.8) 0 0 Less: Amount capitalised into PPE (448.0) (288.6) (275.0) (263.6) 4,331.1 4,343.4 5,468.7 5,451.4 (c) Fair value changes of financial instruments: (Loss)/Gain on changes in fair value of financial assets (46.8) 83.9 (3.1) (12.6) (Loss)/Gain on changes in fair value of financial liabilities (2.6) 46.8 2.0 (2.6) (49.4) 130.7 (1.1) (15.2) 38 TAXATION AND ZAKAT Accounting Policy (a) Income tax Current tax expense is determined by the expected income taxes payable in respect ofthe taxable profit for the financial year and is measured using the applicable tax rates according to the tax laws enacted or substantively enacted at the end of the reporting period in the countries in which the Company and its subsidiaries operate and generate the taxable profits. Management periodically evaluates the positions taken in its tax returns with respect to situations in which applicable tax regulations are subject to interpretation. Provisions are established where appropriate on the basis of amounts expected to be paid to the tax authorities. Tax is recognised in the statement of profit or loss except to the extent that it relates to items recognised directly in OCI. In this case, the item is recognised in OCI, net of tax. The Group and the Company recognise non-current tax recoverable on an undiscounted basis. (b) Zakat The Group and the Company recognise its obligation towards the payment of zakat on business income in the statement of profit or loss. Zakat payment is an obligation and is accrued based on 2.5% of profit before tax and determined according to the percentage of Muslim shareholding in the Company. NOTES TO THE FINANCIAL STATEMENTS 31 December 2023 TENAGA