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Kumpulan Fima Berhad



Notes to the

financial statements

31 march 2017


Significant accounting policies (cont’d.)

2.3 Summary of significant accounting policies (cont’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:


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.


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.


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.



Goodwill acquired in a business combination is initially measured at cost being the excess of the cost of business

combination over the Group’s interest in the net fair value of the identifiable assets, liabilities and contingent

liabilities. Following the initial recognition, goodwill is measured at cost less any accumulated impairment losses.

Goodwill is not amortised but instead, it is reviewed for impairment, annually or more frequently if events or

changes in circumstances indicate that the carrying value may be impaired. Gains and losses on the disposal of an

entity include the carrying amount of goodwill relating to the entity sold.