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KUMPULAN FIMA BERHAD
(11817-V) |
Annual Report
2016
2.
SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
2.3 Summary of Significant Accounting Policies (Cont’d)
(c) Investment in Associate Companies (Cont’d)
The most recent available audited financial statements of the associates are used by the Group
in applying the equity method. Where the dates of the audited financial statements used are
not coterminous with those of the Group, the share of results is arrived at from the last audited
financial statements available and management financial statements to the end of the accounting
period. Uniform accounting policies are adopted for like transactions and events in similar
circumstances.
(d) Revenue Recognition
Revenue is recognised when it is probable that economic benefits associated with the transaction
will flow to the Group and the amount of revenue can be reliably measured. Specific income
streams are recognised as follows:
(i) Sale of Goods
Revenue relating to sale of goods is recognised net of sales taxes and discounts, and upon
transfer of significant risks and rewards of ownership to the buyer.
(ii) Rental Income
Rental income from investment property is recognised on a straight-line basis over the term
of the lease.
(iii) Property Management Services
Revenue from property management is recognised when services are rendered.
(iv) Dividend Income
Dividend income is recognised when the right to receive payment is established.
(v) Receipt in advance
Receipt in advance are deferred and classified under current liabilities in the statement of
financial position.
(vi) Interest Income
Interest income is recognised using the effective interest method.
(vii) Management Fees
Management fees are recognised when the Group’s right to receive payment is
established.