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111

KUMPULAN FIMA BERHAD

(11817-V) |

Annual Report

2016

2.

SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

2.3 Summary of Significant Accounting Policies (Cont’d)

(c) Investment in Associate Companies (Cont’d)

The most recent available audited financial statements of the associates are used by the Group

in applying the equity method. Where the dates of the audited financial statements used are

not coterminous with those of the Group, the share of results is arrived at from the last audited

financial statements available and management financial statements to the end of the accounting

period. Uniform accounting policies are adopted for like transactions and events in similar

circumstances.

(d) Revenue Recognition

Revenue is recognised when it is probable that economic benefits associated with the transaction

will flow to the Group and the amount of revenue can be reliably measured. Specific income

streams are recognised as follows:

(i) Sale of Goods

Revenue relating to sale of goods is recognised net of sales taxes and discounts, and upon

transfer of significant risks and rewards of ownership to the buyer.

(ii) Rental Income

Rental income from investment property is recognised on a straight-line basis over the term

of the lease.

(iii) Property Management Services

Revenue from property management is recognised when services are rendered.

(iv) Dividend Income

Dividend income is recognised when the right to receive payment is established.

(v) Receipt in advance

Receipt in advance are deferred and classified under current liabilities in the statement of

financial position.

(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.