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NOTES TO THE FINANCIAL STATEMENTS
31 MARCH 2018
Kumpulan Fima Berhad (11817-V) •
Annual Report 2018
2.
Significant accounting policies (cont’d.)
2.3 Summary of significant accounting policies (cont’d.)
(c) Investment in associate companies (cont’d.)
In the Company’s separate financial statements, investments in associate are stated 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.
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.