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Notes to the
Financial Statements
As at 31 March 2019
2.
Significant accounting policies (cont’d.)
2.3 Summary of significant accounting policies (cont’d.)
(o) Impairment of non-financial assets (cont’d.)
Impairment losses are recognised in profit or loss.
An assessment is made at each reporting date as to whether there is any indication that previously
recognised impairment losses may no longer exist or may have decreased. A previously recognised
impairment loss is reversed only if there has been a change in the estimates used to determine the
asset’s recoverable amount since the last impairment loss was recognised. If that is the case, the
carrying amount of the asset is increased to its recoverable amount. That increase cannot exceed the
carrying amount that would have been determined, net of depreciation, had no impairment loss been
recognised previously. Such reversal is recognised in the profit or loss.
(p) Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and on hand, and demand deposits that are readily
convertible to known amount of cash and which are subject to an insignificant risk of changes in
value.
(q) Share capital
An equity instrument is any contract that evidences a residual interest in the assets of the Group and
of the Company after deducting all of its liabilities. Ordinary shares are equity instruments.
Ordinary shares are recorded at the proceeds received, net of directly attributable incremental
transaction costs. Ordinary shares are classified as equity. Dividends on ordinary shares are recognised
in equity in the period in which they are declared.
(r) Financial assets
Initial recognition and measurement
Financial assets are classified, at initial recognition, as subsequently measured at amortised cost, fair
value through profit or loss and fair value through other comprehensive income (“FVTOCI”).
The classification of financial assets at initial recognition depends on the financial asset’s contractual
cash flow characteristics and the Group and the Company’s business model for managing them. With
the exception of trade receivables that do not contain a significant financing component or for which
the Group and the Company have applied the practical expedient, the Group and the Company
initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair
value through profit or loss, transaction costs. Trade receivables that do not contain a significant
financing component or for which the Group and the Company applied the practical expedient are
measured at the transaction price determined under MFRS 15.
Kumpulan Fima Berhad
(11817-V)
Annual Report 2019
140