Section 8 UEM Edgenta Berhad FINANCIAL STATEMENTS 290 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 2. ACCOUNTING POLICIES (CONTD.) 2.4 Summary of material accounting policies (contd.) (p) Employee benefits (contd.) (iv) Defined benefit plan (contd.) A charge representing the unwinding of the discount on the plan liabilities during the year is included in profit or loss as administrative expenses. A credit representing the expected return of the plan assets during the year is also included within administrative expenses. This credit is based on the market value of the plan assets and expected rates of return at the beginning of the year. (v) Termination benefit The termination benefits are payable solely at the discretion by the Board of Directors and management. These benefits are payable when employment is terminated before the normal retirement date or where an employee accepts voluntary redundancy in exchange for these benefits when they are offered. The Group recognises termination benefits when it is demonstrably committed to either terminate the employment of current employees according to a detailed plan without possibility of withdrawal. (q) Foreign currencies The Group’s consolidated financial statements are presented in Malaysian Ringgit (“MYR”), which is also the parent company’s functional currency. For each entity, the Group determines the functional currency and items included in the financial statements of each entity are measured using that functional currency. The Group uses the direct method of consolidation and on disposal of a foreign operation, the gain or loss that is reclassified to profit or loss reflects the amount that arises from using this method. (i) Transactions and balances Transactions in foreign currencies are initially recorded by the Group’s entities at their respective functional currency spot rates at the date the transaction first qualifies for recognition. Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rates of exchange at the reporting date. Differences arising on settlement or translation of monetary items are recognised in profit or loss. Tax charges and credits attributable to exchange differences on those monetary items are also recognised in OCI. In the consolidated financial statements, currency translation differences arising from intercompany borrowing in foreign currencies and other currency instruments designated and qualifying as net investment in foreign operations are recognised in other comprehensive income and accumulated in the currency translation reserve. The repayment of borrowings which forming part of the Group’s net investment in foreign operation by a subsidiary is considers as a partial disposal and it related foreign currency exchange differences are reclassified to profit or loss.
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