Frontken Berhad Annual Report 2018

66 Frontken Corporation Berhad (651020-T) ANNUAL REPORT 2018 3. SIGNIFICANT ACCOUNTING POLICIES (CONT’D) Goodwill 0XXM`RUU R\ VNJ\^[NM J] LX\] UN\\ JLL^V^UJ]NM RVYJR[VNW] UX\\N\ RO JWb =QN LJ[[bRWP _JU^N XO PXXM`RUU R\ [N_RN`NM OX[ impairment annually or more frequently if events or changes in circumstances indicate that the carrying amount may be RVYJR[NM =QN RVYJR[VNW] _JU^N XO PXXM`RUU R\ [NLXPWR\NM RVVNMRJ]NUb RW Y[X࠰] X[ UX\\ *W RVYJR[VNW] UX\\ [NLXPWR\NM OX[ PXXM`RUU R\ WX] [N_N[\NM RW J \^K\NZ^NW] YN[RXM >WMN[ ]QN JLZ^R\R]RXW VN]QXM JWb NaLN\\ XO ]QN \^V XO ]QN OJR[ _JU^N XO ]QN LXW\RMN[J]RXW ][JW\ON[[NM RW ]QN K^\RWN\\ LXVKRWJ]RXW ]QN JVX^W] XO WXW LXW][XUURWP RW]N[N\]\ [NLXPWR\NM JWM ]QN OJR[ _JU^N XO ]QN 0[X^Y۴\ Y[N_RX^\Ub QNUM NZ^R]b RW]N[N\] RW ]QN JLZ^R[NN RO JWb X_N[ ]QN WN] OJR[ _JU^N XO ]QN JLZ^R[NN۴\ RMNW]R࠰JKUN J\\N]\ JWM URJKRUR]RN\ J] ]QN MJ]N XO JLZ^R\R]RXW R\ [NLX[MNM J\ PXXM`RUU @QN[N ]QN UJ]]N[ JVX^W] NaLNNM\ ]QN OX[VN[ JO]N[ [NJ\\N\\VNW] ]QN NaLN\\ [NY[N\NW]\ J KJ[PJRW Y^[LQJ\N PJRW JWM R\ [NLXPWR\NM RW Y[X࠰] X[ UX\\ RVVNMRJ]NUb Functional and Foreign Currencies (i) Functional and presentation currency =QN RWMR_RM^JU ࠰WJWLRJU \]J]NVNW]\ XO NJLQ NW]R]b RW ]QN 0[X^Y J[N Y[N\NW]NM RW ]QN L^[[NWLb XO ]QN Y[RVJ[b NLXWXVRL NW_R[XWVNW] RW `QRLQ ]QN NW]R]b XYN[J]N\ `QRLQ R\ ]QN O^WL]RXWJU L^[[NWLb =QN LXW\XURMJ]NM ࠰WJWLRJU \]J]NVNW]\ J[N Y[N\NW]NM RW ;RWPPR] 6JUJb\RJ ۷;6۸ `QRLQ R\ ]QN ,XVYJWb۴\ O^WL]RXWJU JWM Y[N\NW]J]RXW L^[[NWLb (ii) Foreign currency transactions and balances =[JW\JL]RXW\ RW OX[NRPW L^[[NWLRN\ J[N LXW_N[]NM RW]X ]QN [N\YNL]R_N O^WL]RXWJU L^[[NWLRN\ XW RWR]RJU [NLXPWR]RXW ^\RWP ]QN NaLQJWPN [J]N\ J] ]QN ][JW\JL]RXW MJ]N\ 6XWN]J[b J\\N]\ JWM URJKRUR]RN\ J] ]QN NWM XO ]QN [NYX[]RWP YN[RXM J[N ][JW\UJ]NM J] ]QN [J]N\ [^URWP J\ XO ]QJ] MJ]N 7XW VXWN]J[b J\\N]\ JWM URJKRUR]RN\ J[N ][JW\UJ]NM ^\RWP NaLQJWPN [J]N\ ]QJ] NaR\]NM `QNW ]QN _JU^N\ `N[N MN]N[VRWNM *UU NaLQJWPN MROON[NWLN\ J[N [NLXPWR\NM RW Y[X࠰] X[ UX\\ (iii) Foreign operations Assets and liabilities of foreign operations (including any goodwill and fair value adjustments arising on acquisition) J[N ][JW\UJ]NM ]X ]QN 0[X^Y۴\ Y[N\NW]J]RXW L^[[NWLb J] ]QN NaLQJWPN [J]N\ J] ]QN NWM XO ]QN [NYX[]RWP YN[RXM 2WLXVN NaYNW\N\ JWM X]QN[ LXVY[NQNW\R_N RWLXVN XO OX[NRPW XYN[J]RXW\ J[N ][JW\UJ]NM J] NaLQJWPN [J]N\ J] ]QN MJ]N\ XO ]QN ][JW\JL]RXW\ *UU NaLQJWPN MROON[NWLN\ J[R\RWP O[XV ][JW\UJ]RXW J[N ]JTNW MR[NL]Ub ]X X]QN[ LXVY[NQNW\R_N RWLXVN JWM JLL^V^UJ]NM RW NZ^R]b$ J]][RK^]NM ]X ]QN X`WN[\ XO ]QN ,XVYJWb JWM WXW LXW][XUURWP RW]N[N\]\ J\ JYY[XY[RJ]N Goodwill and fair value adjustments arising from the acquisition of foreign operations are treated as assets and liabilities of the foreign operations and are recorded in the functional currency of the foreign operations and ][JW\UJ]NM J] ]QN LUX\RWP [J]N J] ]QN NWM XO ]QN [NYX[]RWP YN[RXM 8W ]QN MR\YX\JU XO J OX[NRPW XYN[J]RXW R N J MR\YX\JU XO ]QN 0[X^Y۴\ NW]R[N RW]N[N\] RW J OX[NRPW \^K\RMRJ[b X[ J YJ[]RJU MR\YX\JU RW_XU_RWP UX\\ XO LXW][XU X_N[ J \^K\RMRJ[b ]QJ] RWLU^MN\ J OX[NRPW XYN[J]RXW X[ J YJ[]RJU MR\YX\JU XO JW RW]N[N\] RW JW J\\XLRJ]N ]QJ] RWLU^MN\ J OX[NRPW XYN[J]RXW XO `QRLQ ]QN [N]JRWNM RW]N[N\] KNLXVN\ J ࠰WJWLRJU J\\N] JUU XO ]QN NaLQJWPN MROON[NWLN\ JLL^V^UJ]NM RW NZ^R]b RW [N\YNL] XO ]QJ] OX[NRPW XYN[J]RXW J]][RK^]JKUN ]X ]QN X`WN[\ XO ]QN ,XVYJWb J[N [NLUJ\\R࠰NM ]X Y[X࠰] X[ UX\\ J\ YJ[] XO ]QN PJRW X[ UX\\ XW MR\YX\JU =QN YX[]RXW [NUJ]NM ]X WXW LXW][XUURWP RW]N[N\]\ R\ MN[NLXPWR\NM K^] R\ WX] [NLUJ\\R࠰NM ]X Y[X࠰] X[ UX\\ Notes To The Financial Statements (cont’d)