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Fima CORPORATION Berhad
(197401004110)
(21185-P)
• Annual Report 2020
121
2.
Significant accounting policies (cont’d.)
2.2 Changes in accounting policies arising fromadoptionof newMFRSs, amendments toMFRSs and IC Interpretations (cont’d.)
(a) Changes in accounting policies (cont’d.)
Adoption of the above standards did not have material effect on the financial performance or position of the Group and
the Company except as disclosed below:
MFRS 16: Leases
The Group adopted MFRS 16 Leases using the modified retrospective method of adoption with the date of initial
application of 1 April 2019. In accordance with the transition requirements under Appendix C, paragraph 7(c) of this
Standard, comparatives are not restated.
As a result of adoption of MFRS 16 Leases, the existing requirements for a lessee to distinguish between finance leases
and operating leases under MFRS 117 Leases are no longer required. This standard introduces a single accountingmodel,
requiring the lessee to recognise the right-of-use of the underlying lease asset and the future lease payments liabilities in
the statements of financial position. For a lessor, MFRS 16 Leases continues to allow the lessor to classify leases as either
operating leases or finance leases and to account for these two types of leases differently.
The following table presents the impact of changes to the statement of financial position of the Group resulting from the
adoption of MFRS 16 Leases as at 1 April 2019:
As at
31 March 2019
Effects of
MFRS 16
adoption
As at
1 April 2019
RM’000
RM’000
RM’000
Non-current assets
Property, plant and equipment
195,033
(108,585)
86,448
Right-of-use assets (a)
-
112,510
112,510
195,033
3,925
198,958
Current liabilities
Finance lease obligations
643
(643)
-
Lease liabilities (b)
-
2,636
2,636
643
1,993
2,636
Non-current liabilities
Finance lease obligations
14,868
(14,868)
-
Lease liabilities (b)
-
16,800
16,800
14,868
1,932
16,800
Notes to the
Financial Statements
As at 31 March 2020