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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.)
(j)
Inventories
Inventories are stated at the lower of cost and net realisable value.
Cost of direct materials are determined as below:
Consumables
First-In, First-Out (FIFO)
Raw materials
First-In, First-Out (FIFO)
Printing materials
First-In, First-Out (FIFO)
Fertilizer
Weighted average
Oil palm products
Weighted average
Cost of finished goods and work-in-progress includes direct materials, direct labour, other direct costs and
appropriate production overheads.
Net realisable value represents the estimated selling price in the ordinary course of business less all estimated
costs to completion and the estimated costs necessary to make the sale.
(k) Income taxes
(i)
Current tax
Current tax assets and liabilities are measured at the amount expected to be recovered from or paid
to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are
enacted or substantively enacted by the reporting date.
Current taxes are recognised in profit or loss except to the extent that the tax relates to items recognised
outside profit or loss, either in other comprehensive income or directly in equity.
(ii) Deferred tax
Deferred tax is provided using the liability method on temporary differences at the reporting date
between the tax bases of assets and liabilities and their carrying amounts for financial reporting
purposes.
Deferred tax liabilities are recognised for all temporary differences, except:
-
where the deferred tax liability arises from the initial recognition of goodwill or of an asset or
liability in a transaction that is not a business combination and, at the time of the transaction,
affects neither the accounting profit nor taxable profit or loss; and
-
in respect of taxable temporary differences associated with investments in subsidiary companies,
associated companies and interests in joint ventures, where the timing of the reversal of the
temporary differences can be controlled and it is probable that the temporary differences will not
reverse in the foreseeable future.