ANNUAL REPORT 2015 |
119
NOTES TO THE FINANCIAL STATEMENTS
30 June 2015 (cont’d)
4. SIGNIFICANT ACCOUNTING POLICIES (cont’d)
4.18 Foreign currencies
(a) Functional and presentation currency
Items included in the financial statements of each of the entities of the Group are measured using the currency of the
primary economic environment in which the entity operates (“the functional currency”). The consolidated financial
statements are presented in Ringgit Malaysia, which is the functional and presentation currency of the Company.
(b) Foreign currency translations and balances
Transactions in foreign currencies are converted into functional currency at rates of exchange ruling at the transaction
dates. Monetary assets and liabilities in foreign currencies at the end of each reporting period are translated into
functional currency at rates of exchange ruling at that date. All exchange differences arising from the settlement of
foreign currency transactions and from the translation of foreign currency monetary assets and liabilities are included
in profit or loss in the period in which they arise. Non-monetary items initially denominated in foreign currencies,
which are carried at historical cost are translated using the historical rate as of the date of acquisition, and non-
monetary items, which are carried at fair value are translated using the exchange rate that existed when the values
were determined for presentation currency purposes.
(c) Foreign operations
Financial statements of foreign operations are translated at end of the reporting period exchange rates with respect to
their assets and liabilities, and at exchange rates at the dates of the transactions with respect to the statement of profit
or loss and other comprehensive income. All resulting translation differences are recognised as a separate component
of equity.
In the consolidated financial statements, exchange differences arising from the translation of net investment in
foreign operations are taken to equity. When a foreign operation is partially disposed of or sold, exchange differences
that were recorded in equity are recognised in profit or loss as part of the gain or loss on disposal.
Exchange differences arising on a monetary item that forms part of the net investment of the Company in a foreign
operation shall be recognised in profit or loss in the separate financial statements of the Company or the foreign
operation, as appropriate. In the consolidated financial statements, such exchange differences shall be recognised
initially as a separate component of equity and recognised in profit or loss upon disposal of the net investment.
Goodwill and fair value adjustments to the assets and liabilities arising from the acquisition of a foreign operation are
treated as assets and liabilities of the acquired entity and translated at the exchange rate ruling at the end of each
reporting period.
4.19 Revenue recognition
Revenue is measured at the fair value of the consideration received or receivables, net of discounts and rebates.
Revenue is recognised to the extent that it is probable that the economic benefits associated with the transaction would
flow to the Group, and the amount of revenue and the cost incurred or to be incurred in respect of the transaction can
be reliably measured and specific recognition criteria have been met for each of the activities of the Group as follows:
(a) Sale of goods
Revenue from sale of goods is recognised when significant risk and rewards of ownership of the goods has been
transferred to the customer and where the Group does not have continuing managerial involvement over the goods,
which coincides with the delivery of goods and acceptance by customers.
