129 / 188
125
NOTES TO THE FINANCIAL STATEMENTS
F i m a C o r p o r at i o n B e r h a d ( 2 1 1 8 5 - P ) •
A n n u a l R e p o r t 2 0 1 8
2.
SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)
2.4 Significant Accounting Estimates and Judgements (Cont’d.)
(i)
Classification between investment properties and property, plant and equipment
The Group developed certain criteria in making judgement whether a property qualifies as an investment property.
Investment property is a property held to earn rentals or for capital appreciation or both.
Some properties comprise a portion that is held to earn rentals or for capital appreciation and another portion that
is held for use in the production or supply of goods or for administrative purposes. If these portions could be sold
separately (or leased out separately under a finance lease), the Group would account for the portions separately. If
the portions could not be sold separately, the property is an investment property only if an insignificant portion is
held for use in the production or supply of goods or services or for administrative purposes. Judgement is made
on an individual property basis to determine whether ancillary services are so significant that a property does not
qualify as investment property.
(ii) Provision for warranty
Provision for warranty is based on volumes of products sold still under warranty and on historic quality rates, as
well as estimates and assumptions regarding future quality rates for new products.
Total Group’s provision for warranty as of 31 March 2018 is RM9,961,000 (2017: RM14,827,000), as disclosed in
Note 31.