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Notes to the
Financial Statements
As at 31 March 2020
Fima CORPORATION Berhad
(197401004110)
(21185-P)
• Annual Report 2020
125
2.
Significant accounting policies (cont’d.)
2.4 Summary of significant accounting policies (cont’d.)
(b) Subsidiaries (cont’d.)
(iii) The ability to use its power over the investee to affect its returns.
In the Company’s separate financial statements, investments in subsidiary companies are accounted for at cost
less impairment losses. On disposal of such investments, the difference between net disposal proceeds and their
carrying amounts is included in profit or loss.
(c) Transaction with non-controlling interests
Non-controlling interests at the reporting date, being the portion of the net assets of subsidiary companies attributable
to equity interests that are not owned by the Company, whether directly or indirectly through subsidiary companies,
are presented in the consolidated statement of financial position and statement of changes in equity within equity,
separately from equity attributable to the equity shareholders of the Company. Non-controlling interests in the results of
the Group are presented in the consolidated statement of profit or loss and other comprehensive income as an allocation
of the profit or loss and the comprehensive income for the year between the non-controlling interests and the equity
shareholders of the Company.
Losses applicable to the non-controlling interest in subsidiary companies are allocated to the non-controlling interests
even if doing so causes the non-controlling interests to have a deficit balance.
The Group treats all changes in its ownership interest in subsidiary companies that do not result in a loss of control as equity
transactions between the Group and its non-controlling interest holders. Any difference between the Group’s share of net
assets before and after the change, and any consideration received or paid, is adjusted to or against Group reserves.
(d) Investment in associate companies
An associate is an entity, not being a subsidiary or a joint venture, in which the Group has significant influence. An
associate is equity accounted for from the date the Group obtains significant influence until the date the Group ceases to
have significant influence over the associate.
TheGroup’s investment in associate are accounted for using the equitymethod. Under the equitymethod, the investment
in associate is measured in the statement of financial position at cost plus post-acquisition changes in the Group’s share
of net assets of the associate. Goodwill relating to associate is included in the carrying amount of the investment and is
not tested for impairment individually. Any excess of the Group’s share of the net fair value of the associate’s identifiable
assets, liabilities and contingent liabilities over the cost of the investment is excluded from the carrying amount of the
investment and is instead included as income in the determination of the Group’s share of the associate’s profit or loss
for the period in which the investment is acquired.
When the Group’s share of losses in an associate equals or exceeds its interest in the associate, the Group does not
recognise further losses, unless it has incurred obligations or made payments on behalf of the associate.