FIMA CORPORATION ANNUAL REPORT 2019

Notes To The

Financial Statements

As at 31 March 2019

Significant accounting policies (cont’d.)

2.3 Summary of significant accounting policies (cont’d.)

(w) Fair value measurement (cont’d.)

The Group and the Company use valuation techniques that are appropriate in the circumstances

and for which sufficient data are available to measure fair value, maximising the use of relevant

observable inputs and minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are

categorised within the fair value hierarchy, described as follows, based on the lowest level input that

is significant to the fair value measurement as a whole:

Level 1 — Quoted (unadjusted) prices in active markets for identical assets or liabilities.

Level 2 — Valuation technique for which the lowest level input that is significant to the fair value

measurement is directly or indirectly observable.

Level 3 — Valuation technique that use inputs that have a significant effect on the recorded fair

value that are not based on observable market data.

For assets and liabilities that are recognised in the financial statements on a recurring basis, the

Group and the Company determine whether transfers have occurred between Levels in the hierarchy

by re-assessing categorisation (based on the lowest level input that is significant to the fair value

measurement as a whole) at the end of each reporting period.

2.4 Significant accounting estimates and judgements

Estimates, assumptions concerning the future and judgements are made in the preparation of the financial

statements. They affect the application of the Group’s accounting policies, reported amounts of assets,

liabilities, income and expenses, and disclosures made. They are assessed on an on-going basis and are

based on experience and other relevant factors, including expectations of future events that are believed

to be reasonable under the circumstances. The significant key assumptions concerning the future and

other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing

a material adjustment to the carrying amounts of assets and liabilities within the next financial year are

discussed below:

(a) 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.

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Fima Corporation Berhad

(21185-P)

Annual Report 2019