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KUMPULAN FIMA BERHAD

(11817-V) |

Annual Report

2016

2. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

2.4 Significant Accounting Estimate and Judgement (Cont’d)

Key Sources of Estimation Uncertainty (Cont’d)

(v) Employee Share Scheme (“ESS”)

The Group measures the cost of equity-settled transactions with employees by reference to

the fair value of the equity instruments at the date at which they are granted. Estimating fair

value for share-based payment transactions requires determining the most appropriate valuation

model, which is dependent on the terms and conditions of the grant. This estimate also requires

determining the most appropriate inputs to the valuation model including the expected life of the

share option, volatility and dividend yield and making assumptions about them. The assumptions

and models used for estimating fair value for share-based payment transactions are disclosed in

Note 34.

(vi) Impairment of goodwill

Goodwill is tested for impairment annually and at other times when such indicators exist. This

requires an estimation of the value-in-use of the CGU to which goodwill is allocated. Estimating

a value-in-use requires management to make an estimate of the expected future cash flows from

the CGU and also to choose a suitable discount rate in order to calculate the present value of

those cash flows. The carrying amount of goodwill as at 31 March 2016 was RM12,710,000 (2015:

RM12,710,000). Further details are disclosed in Note 18.

(vii) Provision for goods defect

Provisions for goods defect are based on current volumes of products sold still under warranty and

on historic quality rates as well as estimates and assumptions regarding future quality rates for

new products and estimates of costs to remedy the various qualitative issues that might occur.

Total Group’s provisions for goods defect as of 31 March 2016 is RM17,114,000 (2015:

RM16,492,000), as disclosed in Note 32.

3.

REVENUE

Revenue of the Group and of the Company consists of the following:

Group

Company

2016

2015

2016

2015

RM’000

RM’000

RM’000

RM’000

Manufacturing

268,302

266,479

-

-

Plantation

112,626

115,688

-

-

Sales of food products

88,420

90,765

-

-

Bulking and logistic services

67,451

66,809

-

-

Rental income

4,308

5,048

682

606

Trading of fish

-

-

25,242

13,553

Dividend income

-

-

52,889

42,036

541,107

544,789

78,813

56,195