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Kumpulan Fima Berhad
(11817-V)
134
Notes to the
financial statements
31 march 2017
2.
Significant accounting policies (cont’d.)
2.2 Changes in accounting policies arising from adoption of new FRSs and amendments to FRSs (cont’d.)
(c)
Malaysian Financial Reporting Standards (“MFRS Framework”)
On 19 November 2011, the Malaysian Accounting Standards Board (“MASB”) issued a new MASB approved
accounting framework, the Malaysian Financial Reporting Standards Framework (“MFRS Framework”).
The MFRS Framework is to be applied by all Entities Other than Private Entities for annual periods beginning on or
after 1 January 2012, with the exception of entities that are within the scope of MFRS 141 Agriculture (MFRS 141) and
IC Interpretation 15 Agreements for the Construction of Real Estate (IC 15), including its parent, significant investor
and venturer (herein called “Transitioning Entities”).
Transitioning Entities are allowed to defer adoption of the new MFRS Framework. The adoption of the MFRS
Framework by Transitioning Entities will be mandatory for annual periods beginning on or after 1 January 2018.
The Group falls within the scope definition of Transitioning Entities and accordingly, will be required to prepare
financial statements using the MFRS Framework in its first MFRS financial statements for the year ending 31 March
2019. In presenting its first MFRS financial statements, the Group will be required to adjust the comparative financial
statements prepared under FRS to amounts reflecting the application of MFRS Framework. The majority of the
adjustments required on transition will be made, retrospectively, against the opening retained earnings.
The Group has not completed its assessment of the financial effects of the differences between Financial Reporting
Standards and accounting standards under the MFRS Framework. Accordingly, the financial performance and
financial position as disclosed in these financial statements for the year ended 31 March 2017 could be different if
prepared under the MFRS Framework. The Group expects to be in a position to fully comply with the requirements
of the MFRS Framework for the financial year ending 31 March 2019.
2.3 Summary of significant accounting policies
(a)
Subsidiaries and basis of consolidation
(i)
Subsidiaries
A subsidiary company is an entity over which the Group has the following:
(i)
Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities
of the investee);
(ii)
Exposure, or rights, to variable returns from its investment with the investee; and
(iii)
The ability to use its power over the investee to affect its returns.
In the Company’s separate financial statements, investments in subsidiary companies are accounted for at
cost less impairment losses. On disposal of such investments, the difference between net disposal proceeds
and their carrying amounts is included in profit or loss.