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Kumpulan Fima Berhad
(11817-V)
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Notes to the
financial statements
31 march 2017
2.
Significant accounting policies (cont’d.)
2.3 Summary of significant accounting policies (cont’d.)
(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:
(i)
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.
(ii)
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.
(v)
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.
(e)
Goodwill
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.