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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