KUMPULAN FIMA ANNUAL REPORT 2019

Notes to the

Financial Statements

As at 31 March 2019

Significant accounting policies (cont’d.)

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

(v) Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly

transaction between market participants at the measurement date. The fair value measurement is

based on the presumption that the transaction to sell the asset or transfer the liability takes place

either:

In the principal market for the asset or liability, or

In the absence of a principal market, in the most advantageous market for the asset or

liability.

The principal or the most advantageous market must be accessible to the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants

would use when pricing the asset or liability, assuming that market participants act in their economic

best interest.

A fair value measurement of a non-financial asset takes into account a market participant’s ability to

generate economic benefits by using the asset in its highest and best use or by selling it to another

market participant that would use the asset in its highest and best use.

The Group and the Company use valuation techniques that are appropriate in the circumstances

and for which sufficient data are available to measure fair value, maximising the use of relevant

observable inputs and minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are

categorised within the fair value hierarchy, described as follows, based on the lowest level input that

is significant to the fair value measurement as a whole:

Level 1 — Quoted (unadjusted) prices in active markets for identical assets or liabilities.

Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value

measurement is directly or indirectly observable.

Level 3 — Valuation techniques that use inputs that have a significant effect on the recorded fair

value that are not based on observable market data.

For assets and liabilities that are recognised in the financial statements on a recurring basis, the

Group and the Company determine whether transfers have occurred between Levels in the hierarchy

by re-assessing categorisation (based on the lowest level input that is significant to the fair value

measurement as a whole) at the end of each reporting period.

financial

statements

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