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KUMPULAN FIMA BERHAD

(11817-V) |

Annual Report

2016

2. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

2.3 Summary of Significant Accounting Policies (Cont’d)

(g) Foreign Currencies (Cont’d)

(ii) Foreign Currency Transactions

Transactions in foreign currencies other than the Company’s functional currency (foreign

currencies) are recorded in the functional currencies at exchange rates approximating those

ruling at the transaction dates. At each reporting date, monetary items denominated in foreign

currencies are translated at the rates prevailing on the reporting date. Non-monetary items

carried at fair value that are denominated in foreign currencies are translated at the rates

prevailing on the date when the fair value was determined. Non-monetary items that are

measured in terms of historical cost in a foreign currency are not translated.

Exchange differences arising on the settlement of monetary items, and on the translation

of monetary items, are included in the profit or loss for the period except for exchange

differences arising on monetary items that form part of the Group’s net investment in foreign

operation. These are initially taken directly to the foreign currency translation reserve within

equity until the disposal of the foreign operations, at which time they are recognised in profit

or loss. Exchange differences arising on monetary items that form part of the Company’s net

investment in foreign operation are recognised in profit or loss in the Company’s separate

financial statements or the individual financial statements of the foreign operation, as

appropriate.

Exchange difference arising on the retranslation of non-monetary items carried at fair

value are included in profit or loss for the period except for the differences arising on the

retranslation of non-monetary items in respect of which gains and losses are recognised

directly in equity. Exchange differences arising from such non-monetary items are also

recognised directly in equity.

(iii) Foreign Operations

The results and financial position of foreign operations that have a functional currency

different from the presentation currency, RM of the consolidated financial statements are

translated into RM as follows:

-

Assets and liabilities for each statement of financial position presented are translated at

the closing rate prevailing at the reporting date;

-

Income and expenses for each profit or loss are translated at average exchange rates

for the year, which approximates the exchange rates at the dates of the transactions;

and

-

All resulting exchange differences are taken to the foreign currency translation reserve

within equity.