Income Taxes International Tax Reform - Pillar Two Model Rules The amendments to the published standards listed above did not have any significant impact on the amounts recognised in prior periods and are not expected to significantly affect the current or future periods, other than as disclosed below. NOTES TO THE FINANCIAL STATEMENTS 31 December 2023 TENAGA NASIONAL BERHAD Integrated Annual Report 2023 214 2 BASIS OF PREPARATION (CONTINUED) (a) New standard and amendments to published standards that are effective and applicable to the Group and the Company. (continued) Adoption and amendments to MFRS 17 - Insurance Contracts The adoption of MFRS 17 Insurance Contracts and its related amendments has resulted in changes in accounting policies, shifting from recognising insurance profits upon premium receipt to acknowledging them as itfulfils insurance services. In addition, it requires disclosing anticipated future profits from insurance contract. The standard is effective for annual reporting periods beginning on or after 1 January 2023 and it supersedes MFRS 4. The Group and the Company completed the assessment of MFRS 17 and concluded that the impact from adoption of the standard is mainly contributed by TNB Global Captive (L) Ltd., which provides reinsurance services. The adoption of MFRS 17 does not have a material impact on the consolidated financial statements and hence the prior period financial statements were not restated. Adjustments related to the changes in accounting policies and other relevant disclosures under MFRS 17 are detailed in Notes 17, 21, 23 and 31 of the financial statements. Amendments to MFRS 112 - Income Taxes Amendments to MFRS 112 Income Taxes on International Tax Reform - Pillar Two Model Rules give entities temporary relief from recognising and disclosing accounting for deferred taxes arising from the Organisation for Economic Co-operation and Development’s (‘OECD’) international tax reform and introduces targeted disclosure requirements to help investors better understand an