Annual report 2014
87
NOTES TO THE FINANCIAL STATEMENTS
31 December 2014 (continued)
4. SIGNIFICANT ACCOUNTING POLICIES (continued)
4.17 Foreign currencies (continued)
(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.
4.18 Revenue recognition
Revenue is measured at the fair value of the consideration received or receivable, 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.
The Group, being a distributor in the sales of prepaid airtime top-ups, is in substance acting as
an agent for the operators. The revenue associated with the sales of prepaid airtime top-ups to
end-users is recognised on a net basis, which represents the margin earned.
(b) Services rendered
Revenue in respect of the rendering of services is recognised when the stage of completion at
the end of each reporting period and the cost incurred can be reliably measured. The stage of
completion is determined by the services performed to date as a percentage of total services
to be performed.
