81 / 158
page
79
FIMA CORPORATION BERHAD
(21185-P) |
Annual Report
2016
NOTES TO THE FINANCIAL
STATEMENTS 31 MARCH 2016
(contd.)
2.
SIGNIFICANT ACCOUNTING POLICIES (CONTD.)
2.2 New FRSs, Amendments to FRS and IC Interpretations (Contd.)
(c) Malaysian Financial Reporting Standards (“MFRS”) Framework (Contd.)
The Group has not completed its assessment of the financial effects of the differences between
Financial ReportingStandards and accounting standards under theMFRSFramework. Accordingly,
the financial performance and financial position as disclosed in these financial statements for the
year ended 31 March 2016 could be different if prepared under the MFRS Framework.
The Group expects to be in a position to fully comply with the requirements of the MFRS Framework
for the financial year ending 31 March 2019.
2.3 Summary of Significant Accounting Policies
(a) Basis of Consolidation
The consolidated financial statements comprise the financial statements of the Company and
its subsidiary companies as at the reporting date. The financial statements of the subsidiary
companies used in the preparation of the consolidated financial statements are prepared for
the same reporting date as the Company. Consistent accounting policies are applied for like
transactions and events in similar circumstances.
The Company controls an investee if and if only the Company has the following:
(i) Power over the investee (i.e. existing rights that give it the current ability to direct the relevant
activities of the investee);
(ii) Exposure, or rights, to variable returns from its investment with the investee; and
(iii) The ability to use its power over the investee to affects its returns.
When the Company has less than a majority of the voting rights of an investee, the Company
considers the following in assessing whether or not the Company’s voting rights in an investee are
sufficient to give it power over the investee:
(i) The size of the Company’s holding of voting rights relative to the size and dispersion of
holdings of the other vote holders;
(ii) Potential voting rights held by the Company, other vote holders or other parties;
(iii) Rights arising from other contractual arrangements; and
(iv) Any additional facts and circumstances that indicate that the Company has, or does not have,
the current ability to direct the relevant activities at the time that decisions need to be made,
including voting patterns at previous shareholders’ meetings.