190 / 204
Notes To The
Financial Statements
As at 31 March 2019
39. Explanation of transition to MFRS (cont’d.)
The significant accounting policies adopted in preparing the financial statements are consistent with those of
the audited financial statement for the year ended 31 March 2018, except as discussed below: (cont’d.)
(c) Adoption of MFRS 141 Agriculture
Under the MFRS framework, biological assets that meet the definition of bearer plants will be within the
scope of MFRS 116 Property, Plant and Equipment. After initial recognition, the bearer biological assets
will be measured at accumulated cost (before maturity) and using either the cost model or revaluation
model (after maturity). The Group is currently measuring the bearer biological assets at fair value less
accumulated impairment losses recognised after the date of valuation. Upon adoption of MFRS framework,
the Group decided to apply the cost model for accounting the bearer plants, the change in accounting
framework will result in the reclassification of the bearer assets from biological assets to property, plant
and equipment, and the revaluation amount on the transition date to be recorded as deemed costs of the
bearer plants which will subsequently be stated at cost less any accumulated impairment losses.
The amendments also require produce that grows on bearer plants to be within the scope of MFRS 141
measured at fair value less cost to sell. Changes in fair value less cost to sell are recognised in profit or loss.
The effects of transitioning from FRS to MFRS, adoptions of MFRS 9 and MFRS 141 are as follows:
Reconciliation of Statements of Financial Position
Previously
reported
under FRS
RM’000
Effects from
transition to
MFRS
RM’000
Effects from
adoption of
MFRS 9
RM’000
Effects from
adoption
of MFRS 141
RM’000
New carrying
amount
under MFRS
RM’000
Group
As at 1 April 2017
Non-current assets
Property, plant and equipment
97,856
-
-
33,030
130,886
Biological assets
33,030
-
-
(33,030)
-
Current assets
Biological assets
-
-
-
3,321
3,321
Trade and other receivables
97,537
-
-
97,537
-
Equity
Other reserves
(6,655)
10,905
-
-
4,250
Retained earnings
449,559
(10,905)
-
1,993
440,647
Non-controlling interests
25,415
-
-
498
25,913
Non-current liability
Deferred tax liabilities
3,275
-
-
830
4,105
186
Fima Corporation Berhad
(21185-P)
Annual Report 2019