NOTES TO THE FINANCIAL STATEMENTS
For The Financial Period From 1 January 2014 To 31 March 2015 (Cont’d)
66
Annual Report 2015
4.
SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
4.2 FAIR VALUE MEASUREMENTS (CONT’D)
For financial reporting purposes, the fair value measurements are analysed into level 1 to level
3 as follows:-
Level 1: Inputs are quoted prices (unadjusted) in active markets for identical assets or liability
that the entity can access at the measurement date;
Level 2: Inputs are inputs, other than quoted prices included within level 1, that are observable
for the asset or liability, either directly or indirectly; and
Level 3: Inputs are unobservable inputs for the asset or liability.
The transfer of fair value between levels is determined as of the date of the event or change
in circumstances that caused the transfer.
4.3 FUNCTIONAL AND FOREIGN CURRENCIES
(a) Functional and Presentation Currency
The individual financial statements of each entity in the Group are presented in the
currency of the primary economic environment in which the entity operates, which is the
functional currency.
The consolidated financial statements are presented in Ringgit Malaysia (“RM”), which is
the Company’s functional and presentation currency.
(b) Transactions and Balances
Transactions in foreign currencies are converted into the respective functional currencies on
initial recognition, using the exchange rates approximating those ruling at the transaction
dates. Monetary assets and liabilities at the end of the financial period are translated at
the rates ruling as of that date. Non-monetary assets and liabilities are translated using
exchange rates that existed when the values were determined. All exchange differences
are recognised in profit or loss.
(c) Foreign Operations
Assets and liabilities of foreign operations are translated to RM at the rates of exchange
ruling at the end of the reporting period. Revenues and expenses of foreign operations
are translated at exchange rates ruling at the dates of the transactions. All exchange
differences arising from translation are taken directly to other comprehensive income
and accumulated in equity under the translation reserve. On the disposal of a foreign
operation, the cumulative amount recognised in other comprehensive income relating
to that particular foreign operation is reclassified from equity to profit or loss.
