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Notes to the
Financial Statements
As at 31 March 2020
Fima CORPORATION Berhad
(197401004110) (21185-P) •
Annual Report 2020
122
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.)
MFRS 16: Leases (cont’d.)
Note:
(a) The right-of-use assets comprise of land, buildings and barge which were recognised during the year. Subsequent
to initial recognition, the right-of-use assets aremeasured at cost less any accumulated depreciation, accumulated
impairment losses and adjusted for any remeasurement of lease liabilities. The right-of-use assets of the Group are
measured at the amount equal to the lease liabilities of RM3.9 million on the date of transition and leasehold land
has been reclassed from property, plant and equipment to right-of-use assets.
(b) The lease liabilities arising from the rental of premises are recognised and discounted using the Group’s
incremental borrowing rate of 4.84% to 6.56%. Subsequent to initial recognition, the Group measures the lease
liabilities, reducing the carrying amount to reflect lease payments made and remeasuring the carrying amount to
reflect any reassessment or lease modifications.
(c) There is no impact to the Group’s retained earnings as at 1 April 2019.
2.3 Standards issued but not yet effective
The standards and interpretations that are issued but not yet effective up to the date of issuance of the Group’s and the
Company’s financial statements are disclosed below. The Group and the Company intend to adopt these standards, if
applicable, when they become effective.
Description
Effective
for financial
periods
beginning
on or after
Amendments to MFRS 3: Definition of a Business
1 January 2020
Amendments to MFRS 9, MFRS 139 and MFRS 7: Interest Rate Benchmark Reform
1 January 2020
Amendments to MFRS 101: Definition of Material
1 January 2020
Amendments to MFRS 108: Definition of Material
1 January 2020
Amendments to MFRS 16: Covid-19-Related Rent Concessions
1 June 2020
MFRS 17: Insurance Contracts
1 January 2021
Amendments to MFRS 3: Reference to Conceptual Framework
1 January 2022
Amendments to MFRS 101: Classification of Liabilities as Current or Non-current
1 January 2022
Amendments to MFRS 116: Property, Plant and Equipment - Proceeds before Intended Use
1 January 2022
Amendments to MFRS 137: Onerous Contracts - Cost of Fulfilling a Contract
1 January 2022
Annual improvements to MFRS 2018 - 2020
1 January 2022
Amendments to MFRS 10 and MFRS 128: Sales or Contribution of Assets between an Investor and its
Associate or Joint Venture
Deferred