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Datasonic Group Berhad
(Company No. 809759-X)
84
NOTES TO THE FINANCIAL STATEMENTS
for the financial year ended 31 March 2016
(Continued)
4.
SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
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 and has been rounded to the
nearest thousand, unless otherwise stated.
(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 financial year. Income, expenses and other comprehensive
income 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; attributed to the owners of the
Company and non-controlling interests, as appropriate.
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 translated at the closing rate at the end of the
financial year.
On the disposal of a foreign operation (i.e. a disposal of the Group’s entire interest in a
foreign subsidiary, or a partial disposal involving loss of control over a subsidiary that includes
a foreign operation, or a partial disposal of an interest in an associate that includes a foreign
operation of which the retained interest becomes a financial asset), all of the exchange
differences accumulated in equity in respect of that foreign operation attributable to
the owners of the Company are reclassified to profit or loss as part of the gain or loss on
disposal. The portion that related to non-controlling interests is derecognised but is not
reclassified to profit or loss.
In addition, in relation to a partial disposal of a subsidiary that does not result in the Group
losing control over the subsidiary, the proportionate share of accumulated exchange
differences are reattributed to non-controlling interests and are not recognised in profit or
loss. When the Group disposes of only part of its investment in an associate that includes
a foreign operation while retaining significant influence, the proportionate share of the
accumulative exchange differences is reclassified to profit or loss.
In the consolidated financial statements, when settlement of an intragroup loan is neither
planned nor likely to occur in the foreseeable future, the exchange differences arising
from translating such monetary item are considered to form part of a net investment in
the foreign operation and are recognised in other comprehensive income.