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Kumpulan Fima Berhad

(11817-V)

120

Key Audit Matters (cont’d.)

Impairment of goodwill (cont’d.)

(Refer to Note 18 to the financial statements)

As part of our audit, we performed the following:

(a)

evaluated the assumptions and methodologies used by the Group in performing the impairment assessment;

(b)

assessed and tested the assumptions of the cash flow forecasts. Our audit procedures, included amongst others, comparing

them against historical evidence, existing contracts, expectations on future contracts and revenue growth;

(c)

assessed the appropriateness of the discount rate used to determine the present value of the cash flows and whether the

rate used reflects the current market assessments of the time value of money and the risks specific to the asset is the return

that investors would require if they were to choose an investment that would generate cash flows of amounts, timing and risk

profile equivalent to those that the entity expects to derive from the asset; and

(d)

evaluated the adequacy of the related disclosures in Note 18.

Information other than the financial statements and auditors’ report thereon

The directors of the Company are responsible for the other information. The other information comprises the information included

in the annual report, but does not include the financial statements of the Group and the Company and our auditors’ report thereon.

Our opinion on the financial statements of the Group and of the Company does not cover the other information and we do not

express any form of assurance conclusion thereon.

In connection with our audit of the financial statements of the Group and of the Company, our responsibility is to read the other

information and, in doing so, consider whether the other information is materially inconsistent with the financial statements of the

Group and the Company or our knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are

required to report that fact. We have nothing to report in this regard.

Responsibilities of the Directors for the financial statements

The directors of the Company are responsible for the preparation of financial statements of the Group and of the Company that give

a true and fair view in accordance with Financial Reporting Standards and the requirements of the Companies Act 2016 in Malaysia.

The directors are also responsible for such internal control as the directors determine is necessary to enable the preparation of

financial statements of the Group and of the Company that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements of the Group and of the Company, the directors are responsible for assessing the Group’s and

the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going

concern basis of accounting unless the directors either intend to liquidate the Group or the Company or to cease operations, or have

no realistic alternative but to do so.

Independent auditors’ report

to the members of Kumpulan Fima Berhad

(Incorporated in Malaysia)