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Notes to the
Financial Statements
As at 31 March 2020
Fima CORPORATION Berhad
(197401004110)
(21185-P)
• Annual Report 2020
123
2.
Significant accounting policies (cont’d.)
2.3 Standards issued but not yet effective (cont’d.)
The directors expect that the adoption of the above standards and interpretations will have no material impact on the financial
statements to the period of initial application.
2.4 Summary of significant accounting policies
(a) Basis of consolidation
The consolidated financial statements comprise the financial statements of the Company and its subsidiary companies
as at the reporting date. The financial statements of the subsidiary companies used in the preparation of the consolidated
financial statements are prepared for the same reporting date as the Company. Consistent accounting policies are
applied for like transactions and events in similar circumstances.
The Company controls an investee if and only if the Company has the following:
(i)
Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the
investee);
(ii)
Exposure, or rights, to variable returns from its investment with the investee; and
(iii) The ability to use its power over the investee to affects its returns.
When the Company has less than a majority of the voting rights of an investee, the Company considers the following in
assessing whether or not the Company’s voting rights in an investee are sufficient to give it power over the investee:
(i)
The size of the Company’s holding of voting rights relative to the size and dispersion of holdings of the other vote
holders;
(ii)
Potential voting rights held by the Company, other vote holders or other parties;
(iii) Rights arising from other contractual arrangements; and
(iv)
Any additional facts and circumstances that indicate that the Company has, or does not have, the current ability
to direct the relevant activities at the time that decisions need to be made, including voting patterns at previous
shareholders’ meetings.
Subsidiary companies are consolidated when the Company obtains control over the subsidiary company and ceases
when the Company loses control of the subsidiary company. All intra-group balances, income and expenses and
unrealised gains and losses resulting from intra-group transactions are eliminated in full.
Profit or loss and each component of other comprehensive income are attributed to the equity holders of the parent of the
Group and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance.
Changes in the Group’s ownership interests in subsidiary companies that do not result in the Group losing control over
the subsidiaries are accounted for as equity transactions. The carrying amounts of the Group’s interests and the non-
controlling interests are adjusted to reflect the changes in their relative interests in the subsidiary company. The resulting
difference is recognised directly in equity and attributed to owners of the Company.