KUMPULAN FIMA BERHAD
2. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
2.3 Summary of Significant Accounting Policies (Cont’d)
(o) Impairment of Non-financial Assets (Cont’d)
Impairment losses are recognised in profit or loss except for assets that are previously revalued
where the revaluation was taken to other comprehensive income. In this case the impairment is
also recognised in other comprehensive income up to the amount of any previous revaluation.
An assessment is made at each reporting date as to whether there is any indication that previously
recognised impairment losses may no longer exist or may have decreased. A previously recognised
impairment loss is reversed only if there has been a change in the estimates used to determine the
asset’s recoverable amount since the last impairment loss was recognised. If that is the case, the
carrying amount of the asset is increased to its recoverable amount. That increase cannot exceed
the carrying amount that would have been determined, net of depreciation, had no impairment
loss been recognised previously.
Such reversal is recognised in the profit or loss unless the asset is measured at revalued amount,
in which case the reversal is treated as a revaluation increase. Impairment loss on goodwill is not
reversed in a subsequent period.
(p) Cash and Cash Equivalents
Cash and cash equivalents comprise cash at bank and on hand, and demand deposits that are
readily convertible to known amount of cash and which are subject to an insignificant risk of
changes in value.
(q) Share Capital
An equity instrument is any contract that evidences a residual interest in the assets of the Group
and the Company after deducting all of its liabilities. Ordinary shares are equity instruments.
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.
(r) Financial Assets
Financial assets are recognised in the statements of financial position when, and only when, the
Group and the Company become a party to the contractual provisions of the financial instrument.
When financial assets are recognised initially, they are measured at fair value, plus, in the case
of financial assets not at a fair value through profit or loss, directly attributable transaction costs.
The Group and the Company categorised the classification of their financial assets at initial
recognition as loans and receivables.
Loans and receivables are classified as current assets, except for those having maturity dates
later than 12 months after the reporting date which are classified as non-current.