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Annual Report 2020
149
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.)
Business combinations (cont’d.)
If the contingent consideration is classified as equity, it will not be remeasured. Subsequent settlement
is accounted for within equity. In instances where the contingent consideration does not fall within the
scope of MFRS 9, it is measured in accordance with the appropriate MFRS.
When theGroupacquires abusiness, it assesses the financial assets and liabilities assumed for appropriate
classification and designation in accordance with the contractual terms, economic circumstances and
pertinent conditions as at the acquisition date. This includes the separation of embedded derivatives in
host contracts by the acquiree.
If the business combination is achieved in stages, the acquisition date of the acquirer’s previously
held equity interest in the acquiree is remeasured to fair value at the acquisition date through profit or
loss.
Goodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred
and the amount recognised for non-controlling interests over the net identifiable assets acquired
and liabilities assumed. If this consideration is lower than fair value of the net assets of the subsidiary
company acquired, the difference is recognised in profit or loss. The accounting policy for goodwill is
set out in Note 2.4(e).
(b) Transaction with non-controlling interests
Non-controlling interests at the reporting date, being the portion of the net assets of subsidiary companies
attributable to equity interests that are not owned by the Company, whether directly or indirectly through
subsidiary companies, are presented in the consolidated statement of financial position and statement
of changes in equity within equity, separately from equity attributable to the equity shareholders of the
Company. Non-controlling interests in the results of the Group are presented in the consolidated statement
of comprehensive income as an allocation of the profit or loss and the comprehensive income for the year
between the non-controlling interests and the equity shareholders of the Company.
Losses applicable to the non-controlling interest in a subsidiary company are allocated to the non-controlling
interests even if doing so causes the non-controlling interests to have a deficit balance.
The Group treats all changes in its ownership interest in a subsidiary company that do not result in a loss of
control as equity transactions between the Group and its non-controlling interest holders. Any difference
between the Group's share of net assets before and after the change, and any consideration received or paid,
is adjusted to or against Group reserves.