125 / 220
1 2 1
NOTES TO THE FINANCIAL STATEMENTS
31 MARCH 2018
Kumpulan Fima Berhad (11817-V) •
Annual Report 2018
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”) (cont’d.)
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
31March 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 2018 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.
(ii) Basis of consolidation
The consolidated financial statements comprise the financial statements of the Company and its subsidiary
companies as at the reporting date. The financial statements of the subsidiary companies used in the
preparation of the consolidated financial statements are prepared for the same reporting date as the Company.
Consistent accounting policies are applied for like transactions and events in similar circumstances.