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Notes to the
Financial Statements
As at 31 March 2020
Fima CORPORATION Berhad
(197401004110) (21185-P) •
Annual Report 2020
132
2.
Significant accounting policies (cont’d.)
2.4 Summary of significant accounting policies (cont’d.)
(k)
Impairment of financial assets (cont’d.)
The Group and the Company consider a financial asset in default when contractual payments are 90 days past due.
However, in certain cases, the Group and the Company may also consider a financial asset to be in default when internal
or external information indicates that the Group and the Company are unlikely to receive the outstanding contractual
amounts in full before taking into account any credit enhancements held by the Group and the Company. A financial
asset is written off when there is no reasonable expectation of recovering the contractual cash flows.
(l) Inventories
Inventories are stated at the lower of cost and net realisable value.
Cost of direct materials are determined as below:
Printing materials
First-In, First-Out (FIFO)
Consumables
First-In, First-Out (FIFO)
Oil palm products
Weighted average
Fertilizer
Weighted average
Cost of finished goods and work-in-progress includes direct materials, direct labour, other direct costs and appropriate
production overheads.
Net realisable value represents the estimated selling price in the ordinary course of business less all estimated costs to
completion and the estimated costs necessary to make the sale.
(m) Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and on hand, and demand deposits that are readily convertible to
known amount of cash and which are subject to an insignificant risk of changes in value.
(n) Financial liabilities
Initial recognition and measurement
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss or other
financial liabilities, as appropriate.
All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of
directly attributable transaction costs.
The Group’s financial liabilities include trade payables, other payables and amount due to related companies.