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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.)
2.4 Summary of significant accounting policies (cont’d.)
(d) Revenue recognition
Revenue from contracts with customers
The Group is in the business of production of security and confidential documents, oil palm production,
provision of bulking services, sale of food products and property management services. The Group has
generally concluded that it is the principal in its revenue arrangements because it typically controls the goods
or services before transferring them to the customer.
(i)
Sale of goods
Revenue is recognised at point of time, net of sales taxes and upon transfer of control to
the buyer. Revenue is not recognised to the extent where there are significant uncertainties
regarding recovery of the consideration due, associated costs or the possible return of goods.
(ii) Receipts in advance
Receipts in advance are deferred and classified under current liabilities in the statement of financial
position.
Other revenue
(i)
Rental income
Rental income from investment property is recognised on a straight-line basis over the term of the
lease.
(ii) Dividend income
Dividend income is recognised when the right to receive payment is established.
(e) Goodwill
Goodwill acquired in a business combination is initially measured at cost being the excess of the cost of
business combination over the Group’s interest in the net fair value of the identifiable assets, liabilities and
contingent liabilities. Following the initial recognition, goodwill is measured at cost less any accumulated
impairment losses. Goodwill is not amortised but instead, it is reviewed for impairment, annually or more
frequently if events or changes in circumstances indicate that the carrying value may be impaired. Gains
and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity
sold.