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Fima Corporation Berhad
(21185-P)
financial statements
110
NOTES TO THE FINANCIAL STATEMENTS
2.
SIGNIFICANT ACCOUNTING POLICIES (Cont’d.)
2.3 Summary of Significant Accounting Policies (Cont’d.)
(q) Revenue Recognition (Cont’d.)
(vi) Interest income
Interest income is recognised using the effective interest method.
(vii) Management fees
Management fees are recognised when the Group’s 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.
Additional disclosures on each of these segments are shown in Note 33.
(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 Ringgit Malaysia (RM), which is also the Company’s functional currency.
(ii) Foreign Currency Transactions
Transactions in foreign currencies other than the Company’s functional currency (foreign currencies) are
recorded in the functional currencies at exchange rates approximating those ruling at the transaction dates. At
each reporting date, monetary items denominated in foreign currencies are translated at the rates prevailing
on the reporting date. Non-monetary items carried at fair value that are denominated in foreign currencies are
translated at the rates prevailing on the date when the fair value was determined. Non-monetary items that are
measured in terms of historical cost in a foreign currency are not translated.
Exchange differences arising on the settlement of monetary items, and on the translation of monetary items,
are included in profit or loss for the period except for exchange differences arising on monetary items that form
part of the Group’s net investment in foreign operation. These are initially taken directly to the foreign currency
translation reserve within equity until the disposal of the foreign operations, at which time they are recognised in
profit or loss. Exchange differences arising on monetary items that form part of the Company’s net investment
in foreign operation are recognised in profit or loss in the Company’s separate financial statements or the
individual financial statements of the foreign operation, as appropriate.
Exchange differences arising on the translation of non-monetary items carried at fair value are included in profit
or loss for the period except for the differences arising on the translation of non-monetary items in respect of
which gains and losses are recognised directly in equity. Exchange differences arising from such non-monetary
items are also recognised directly in equity.