34. EVENTS AFTER THE END OF THE REPORTING YEAR Subsequent to the end of the reporting year, the Group received an additional insurance compensation of S$1.2 million from its insurer in January 2026 as a result of the fire incident which occurred in 2023. The total insurance proceeds received to date amount to S$13.7 million. The insurance claim process remains ongoing, and any further insurance recoveries are subject to approval by the insurer. The insurance proceeds received in January 2026 are expected to contribute positively to the Group’s financial performance for the reporting year ending 31 December 2026. This subsequent event does not give rise to adjustments to the financial statements for the reporting year ended 31 December 2025, as the insurance proceeds were received after the reporting year. 35. CHANGES AND ADOPTION OF SINGAPORE FINANCIAL REPORTING STANDARDS (INTERNATIONAL) For the current reporting year the ASC issued certain new or revised Singapore Financial Reporting Standards (International). None had a material impact on the Group and Company. 36. NEW OR AMENDED STANDARDS IN ISSUE BUT NOT YET EFFECTIVE The ASC issued certain new or revised Singapore Financial Reporting Standards (International) for the future reporting years. Those applicable to the reporting entity for future reporting years are listed below. SFRS (I) No. Title Effective date for years beginning on or after SFRS(I) 1-21 The Effects of Changes in Foreign Exchange Rates (amendment) Lack of Exchangeability 1 January 2025 SFRS(I) 9 and 7 Classification and Measurement of Financial Instruments – Amendments 1 January 2026 SFRS(I) 18 Presentation and disclosures in financial statements 1 January 2027 SFRS(I) 19 Subsidiaries without Public Accountability: Disclosures 1 January 2027 The transfer to these new or revised standards from the effective dates is not expected to result in material modification of the measurement methods or the presentation in the financial statements for the following reporting year from the known or reasonably estimable information relevant to assessing the possible impact that application of the new or revised standards may have on the Group’s financial statements in the period of initial application, except for the below: SFRS(I) 18 Presentation and Disclosure in Financial Statements replaces SFRS(I) 1-1. The new version includes (a) revised presentation of specified categories and defined subtotals in the statement of profit or loss; (b) new disclosures on management-defined performance measures in the notes to the financial statements; and (c) improved disclosures of aggregation and disaggregation of balances. MEGACHEM LIMITED ANNUAL REPORT 2025 176 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2025
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