120 / 204
Notes To The
Financial Statements
As at 31 March 2019
2.
Significant accounting policies (cont’d.)
2.3 Summary of significant accounting policies (cont’d.)
(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.
The Group’s investment in associate are accounted for using the equity method. Under the equity
method, 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.
After application of the equity method, the Group determines whether it is necessary to recognise
an additional impairment loss on the Group’s investment in its associates. The Group determines at
each reporting date whether there is any objective evidence that the investment in the associate
is impaired. If this is the case, the Group calculates the amount of impairment as the difference
between the recoverable amount of the associate and its carrying value and recognises the amount
in profit or loss.
116
Fima Corporation Berhad
(21185-P)
Annual Report 2019