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Notes to the
Financial Statements
As at 31 March 2020
Fima CORPORATION Berhad
(197401004110)
(21185-P)
• Annual Report 2020
141
2.
Significant accounting policies (cont’d.)
2.5 Significant accounting estimates and judgements (cont’d.)
(a) Estimates
(i) Classification between investment properties and property, plant and equipment
The Group developed certain criteria inmaking judgement whether a property qualifies as an investment property.
Investment property is a property held to earn rentals or for capital appreciation or both.
Some properties comprise a portion that is held to earn rentals or for capital appreciation and another portion that
is held for use in the production or supply of goods or for administrative purposes. If these portions could be sold
separately (or leased out separately under a finance lease), the Group would account for the portions separately.
If the portions could not be sold separately, the property is an investment property only if an insignificant portion
is held for use in the production or supply of goods or services or for administrative purposes. Judgement is made
on an individual property basis to determine whether ancillary services are so significant that a property does not
qualify as investment property.
(ii) Inventories
In determining the costing of inventories, management’s judgement is required in determining the basis of finished
goods and work-in-progress valuation which comprise costs of rawmaterials, direct labour, other direct costs, and
the appropriate allocation of overheads based on normal operating capacity.
3.
Revenue from contracts with customers
Disaggregation of revenue from contracts with customers:
Group
Company
2020
2019
2020
2019
RM’000
RM’000
RM’000
RM’000
Production and trading of security and confidential
documents
134,004
134,780
-
-
Net sale of oil palm products
103,118
102,836
-
-
Property management services
679
1,909
455
420
237,801
239,525
455
420
Geographical market:
Malaysia
137,944
137,141
455
420
Indonesia
99,857
102,384
-
-
237,801
239,525
455
420
All revenue are recognised at a point in time as when the performance obligation are satisfied.