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FIMA CORPORATION BERHAD
(21185-P) |
Annual Report
2016
NOTES TO THE FINANCIAL
STATEMENTS 31 MARCH 2016
(contd.)
2.
SIGNIFICANT ACCOUNTING POLICIES (CONTD.)
2.3 Summary of Significant Accounting Policies (Contd.)
(l) Inventories
Inventories are stated at the lower of cost and net realisable value.
Cost is determined on the First-In, First-Out (“FIFO”) basis. 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.
(m) Cash and Cash Equivalents
Cash and cash equivalents comprise cash at bank and on hand, and demand deposits that are
readily convertible to known amount of cash and which are subject to an insignificant risk of
changes in value.
(n) Financial Liabilities
Financial liabilities are classified according to the substance of the contractual arrangements
entered into and the definitions of a financial liability.
Financial liabilities within the scope of FRS 139 Financial Instruments: Recognition and
Measurement, are recognised in the statement of financial position when, and only when, the
Group and the Company become a party to the contractual provisions of the financial instrument.
Financial liabilities are classified as either financial liabilities at fair value through profit or loss or
other financial liabilities.
(i) Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held for trading
or financial liabilities designated upon initial recognition as at fair value through profit or loss.
Financial liabilities held for trading includes derivatives entered into by the Group that do not
meet the hedge accounting criteria. Derivative liabilities are initially measured at fair value
and subsequently stated at fair value, with any resultant gains or losses recognised in profit
or loss. Net gain or losses on derivatives include exchange differences.