Maxis Berhad
Annual Report 2014
98
Notes to the
Financial Statements
31 December 2014
3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(b) Foreign currencies
(i) Functional and presentation currency
Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary
economic environment in which the entity operates (the “functional currency”). These financial statements are presented in
Ringgit Malaysia (“RM”), which is the Company’s functional and presentation currency.
When there is a change in an entity’s functional currency, the entity shall apply the translation procedures applicable to the
new functional currency prospectively from the date of the change.
(ii) Transactions and balances
Transactions in foreign currencies are translated to the respective functional currencies of the Group entities using the
exchange rates prevailing at the date of the transactions.
Monetary assets and liabilities in foreign currencies at the reporting date are translated into the functional currency at
exchange rates ruling at the date.
Exchange differences arising from the settlement of foreign currency transactions and the translation of monetary assets and
liabilities denominated in foreign currencies at year end are recognised in the statement of profit or loss.
(iii) Group companies
The results and financial position of all the Group entities (none of which has the currency of a hyperinflationary economy)
that have a functional currency different from the presentation currency are translated into the presentation currency as
follows:
• assets and liabilities for each statement of financial position presented are translated at the closing rate at the date of that
statement of financial position;
• income and expenses for each statement of profit or loss are translated at average exchange rates (unless this average
is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case
income and expenses are translated at the rate on the dates of the transactions); and
• all resulting exchange differences are recognised as a separate component of equity.
On consolidation, exchange differences arising from the translation of the net investment in foreign operations are taken
to shareholders’ equity. When a foreign operation is disposed of, exchange differences that were recorded in equity are
recognised in the statement of profit or loss as part of the gain or loss on sale.
