KUMPULAN FIMA ANNUAL REPORT 2018

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NOTES TO THE FINANCIAL STATEMENTS

31 MARCH 2018

fInanCIal StatementS

Significant accounting policies (cont’d.)

2.3 Summary of significant accounting policies (cont’d.)

(a) Subsidiaries and basis of consolidation (cont’d.)

(ii) Basis of consolidation (cont’d.)

The Company controls an investee if and only if the Company 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.

When the Company has less than a majority of the voting rights of an investee, the Company considers

the following in assessing whether or not the Company’s voting rights in an investee are sufficient to give it

power over the investee:

(i)

The size of the Company’s holding of voting rights relative to the size and dispersion of holdings of the

other vote holders;

(ii) Potential voting rights held by the Company, other vote holders or other parties;

(iii) Rights arising from other contractual arrangements; and

(iv) Any additional facts and circumstances that indicate that the Company has, or does not have, the

current ability to direct the relevant activities at the time that decisions need to be made, including

voting patterns at previous shareholders’ meetings.

Subsidiary companies are consolidated when the Company obtains control over the subsidiary company

and ceases when the Company loses control of the subsidiary company. All intra-group balances, income

and expenses and unrealised gains and losses resulting from intra-group transactions are eliminated in full.

Losses within a subsidiary company are attributed to the non-controlling interests even if that results in a

deficit balance.

Changes in the Group’s ownership interests in subsidiary companies that do not result in the Group losing

control over the subsidiaries are accounted for as equity transactions. The carrying amounts of the Group’s

interests and the non-controlling interests are adjusted to reflect the changes in their relative interests in the

subsidiary company. The resulting difference is recognised directly in equity and attributed to owners of the

Company.