149 / 244
Annual Report 2020
145
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.)
Company
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
41,148
(24,777)
16,371
Right-of-use assets (a)
-
27,922
27,922
41,148
3,145
44,293
Current liabilities
Lease liabilities (b)
-
710
710
Non-current liabilities
Lease liabilities (b)
-
2,435
2,435
Note:
(a)
The right-of-use assets comprise of land, buildings and barge which were recognised during the year.
Subsequent to initial recognition, the right-of-use assets are measured at cost less any accumulated
depreciation, accumulated impairment losses and adjusted for any remeasurement of lease liabilities.
The right-of-use assets of the Group and the Company are measured at amount equal to the lease
liabilities of RM54,694,000 and RM3,145,000 respectively on the date of transition and reclassification
from leased assets of RM180,757,000 and RM24,777,000 respectively, previously recognised in the
financial statement.
(b)
The lease liabilities arising from the rental of premises are recognised and discounted using the
Company's incremental borrowing rate of 4.84% - 6.56%. Subsequent to initial recognition, the
Company measures the lease liabilities, reducing the carrying amount to reflect lease payments made
and remeasuring the carrying amount to reflect any reassessment or lease modifications.
(c)
There is no impact to the Group and the Company's retained earnings as at 1 April 2019.