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Annual Report 2020
148
Notes to the Financial Statements
As at 31 March 2020
kumpulan Fima Berhad
(197201000167)(11817-V)
2.
Significant accounting policies (cont'd.)
2.4 Summary of significant accounting policies (cont'd.)
(a) Subsidiaries and basis of consolidation (cont'd.)
(ii) Basis of consolidation (cont'd.)
Subsidiary companies are consolidated when the Company obtains control over the subsidiary company
and ceases when the Company loses control of the subsidiary company. All intra-group balances, income
and expenses and unrealised gains and losses resulting from intra-group transactions are eliminated in
full.
Profit or loss and each component of other comprehensive income are attributed to the equity holders
of the parent of the Group and to the non-controlling interests, even if this results in the non-controlling
interests having a deficit balance.
Changes in the Group’s ownership interests in subsidiary companies that do not result in the Group
losing control over the subsidiaries are accounted for as equity transactions. The carrying amounts
of the Group’s interests and the non-controlling interests are adjusted to reflect the changes in their
relative interests in the subsidiary company. The resulting difference is recognised directly in equity and
attributed to owners of the Company.
When the Group loses control of a subsidiary company, a gain or loss calculated as the difference
between (i) the aggregate of the fair value of the consideration received and the fair value of any
retained interest and (ii) the previous carrying amount of the assets and liabilities of the subsidiary
company and any non-controlling interest, is recognised in profit or loss. The subsidiary company's
cumulative gain or loss which has been recognised in other comprehensive income and accumulated
in equity are reclassified to profit or loss or where applicable, transferred directly to retained earnings.
The fair value of any investment retained in the former subsidiary company at the date control is lost is
regarded as the cost on initial recognition of the investment.
Business combinations
Acquisitions of subsidiaries are accounted for using the acquisition method. The cost of an acquisition
is measured as the aggregate of the consideration transferred, measured at acquisition date fair value
and the amount of any non-controlling interests in the acquiree. The Group elects on a transaction-by-
transaction basis whether to measure the non-controlling interests in the acquiree either at fair value
or at the proportionate share of the acquiree’s identifiable net assets. Transaction costs incurred are
expensed off and included in administrative expenses.
Any contigent consideration to be transferred by the acquirer wiil be recognised at fair value at the
acquisition date. Subsequent changes in the fair value of the contigent consideration which is deemed
to be an asset or liability. It will be recognised in accordance with MFRS 9 either in profit or loss or as a
change to other comprehensice income.