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Notes To The
Financial Statements
As at 31 March 2019
2.
Significant accounting policies (cont’d.)
2.3 Summary of significant accounting policies (cont’d.)
(q) Revenue recognition
The Group is in the business of production of security and confidential documents, oil palmproduction
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) Rental income
Rental income from investment property is recognised on a straight-line basis over the term of
the lease.
(iii) Dividend income
Dividend income is recognised when the right to receive payment is established.
(iv) Receipts in advance
Receipts in advance are deferred and classified under current liabilities in the statement of
financial position.
(v) Interest income and profit income
Interest income and profit income are recognised using the effective interest method.
(vi) Management fees
Management fees are recognised as and when services are rendered.
(r) Segment reporting
For management purposes, the Group is organised into operating segments based on their products
and services/business activities. An operating segment’s operating results are reviewed regularly by
the chief operating decision maker, who will make decisions to allocate resources to the segments
and assess the segment performance.
126
Fima Corporation Berhad
(21185-P)
Annual Report 2019