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Annual Report 2020
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Notes to the Financial Statements
As at 31 March 2020
kumpulan Fima Berhad
(197201000167)(11817-V)
2.
Significant accounting policies (cont’d.)
2.2 Changes in accounting policies arising from adoption of new MFRSs, amendments to MFRSs and IC
Interpretations (cont’d.)
(a) Changes in accounting policies (cont’d.)
Adoption of the above standards did not have material effect on the financial performance or position of the
Group and the Company except as disclosed below:
MFRS 16 Leases
The Group and the Company adopted MFRS 16 Leases using the modified retrospective method of adoption
with the date of initial application of 1 April 2019. In accordance with the transition requirements under
Appendix C, paragraph 7(c) of this Standard, comparatives are not restated.
As a result of adoption of MFRS 16 Leases, the existing requirements for a lessee to distinguish between
finance leases and operating leases under MFRS 117 Leases are no longer required. This Standard introduces
a single accounting model, requiring the lessee to recognise the right-of-use of the underlying lease asset
and the future lease payments liabilities in the statements of financial position. For a lessor, MFRS 16 Leases
continues to allow the lessor to classify leases as either operating leases or finance leases and to account for
these two types of leases differently.
The following table presents the impact of changes to the statement of financial position of the Group and of
the Company resulting from the adoption of MFRS 16 Leases as at 1 April 2019:
Group
As at
31 March
2019
RM'000
Effects of
MFRS 16
adoption
RM'000
As at
1 April
2019
RM'000
Non-current assets
Property, plant and equipment
548,078
(180,757)
367,321
Right-of-use assets (a)
-
235,451
235,451
548,078
54,694
602,772
Current liabilities
Lease liabilities (b)
-
9,611
9,611
Finance lease obligations
643
(643)
-
643
8,968
9,611
Non-current liabilities
Lease liabilities (b)
-
60,594
60,594
Finance lease obligations
14,868
(14,868)
-
14,868
45,726
60,594