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Notes to the
Financial Statements
As at 31 March 2020
Fima CORPORATION Berhad
(197401004110) (21185-P) •
Annual Report 2020
134
2.
Significant accounting policies (cont’d.)
2.4 Summary of significant accounting policies (cont’d.)
(p) Share capital (cont’d.)
Ordinary shares are recorded at the proceeds received, net of directly attributable incremental transaction costs.
Ordinary shares are classified as equity. Dividends on ordinary shares are recognised in equity in the period in which
they are declared.
(q) Revenue recognition
Revenue from contracts with customers
The Group is in the business of production of security and confidential documents, oil palm production and property
management services. The Group has generally concluded that it is the principal in its revenue arrangements because it
typically controls the goods or services before transferring them to the customer.
(i) Sale of goods
Revenue is recognised at point of time, net of sales taxes and upon transfer of control to the buyer. Revenue is not
recognised to the extent where there are significant uncertainties regarding recovery of the consideration due,
associated costs or the possible return of goods.
(ii) Receipts in advance
Receipts in advance are deferred and classified under current liabilities in the statement of financial position.
Other revenue
(i) Rental income
Rental income from investment property is recognised on a straight-line basis over the term of the lease.
(ii) Dividend income
Dividend income is recognised when the right to receive payment is established.
(r) Segment reporting
For management purposes, the Group is organised into operating segments based on their products and services/
business activities. An operating segment’s operating results are reviewed regularly by the chief operating decision
maker, who will make decisions to allocate resources to the segments and assess the segment performance.
(s) Foreign currencies
(i) Functional and presentation currency
The individual financial statements of each entity in the Group are measured using the currency of the primary
economic environment in which the entity operates (“the functional currency”). The consolidated financial statements
are presented in RM, which is also the Company’s functional currency.