65
ANNUAL REPORT 2015
Notes to the Financial Statements (cont’d)
for the financial year ended 30 June 2015
2.
Summary of significant accounting policies (cont’d)
2.6 Investments in associates (cont’d)
After application of the equity method, the Group applies FRS 139 Financial Instruments: Recognition and
Measurement to determine whether it is necessary to recognise any additional impairment loss with respect to
its net investment in the associate. When necessary, the entire carrying amount of the investment is tested for
impairment in accordance with FRS 136 Impairment of Assets as a single asset, by comparing its recoverable
amount (higher of value in use and fair value less costs to sell) with its carrying amount. Any impairment loss
is recognised in profit or loss. Reversal of an impairment loss is recognised to the extent that the recoverable
amount of the investment subsequently increases.
In the Company’s separate financial statements and investments in associates are accounted for at cost less
impairment losses. On disposal of such investments, the difference between net disposal proceeds and their
carrying amounts is included in profit or loss.
2.7 Transactions with non-controlling interests
Non-controlling interests represent the equity in subsidiaries not attributable, directly or indirectly, to owners of
the Company, and is presented separately in the consolidated statement of comprehensive income and within
the equity in the consolidated statement of financial position, separately from equity attributable to owners of
the Company.
Changes in the Company owner’s ownership interest in a subsidiary that do not result in a loss of control are
accounted for as equity transactions. In such circumstances, the carrying amounts of the controlling and non-
controlling interests are adjusted to reflect the changes in their relative interest in the subsidiary. Any difference
between the amount by which the non-controlling interests are adjusted and the fair value of the consideration
paid or received is recognised directly in equity and attributed to owners of the Company.
2.8 Foreign currency
(a)
Functional and presentation currency
The individual financial statements of each entity in the Group are measured using the currency of the
primary economic environment in which the entity operates (“the functional currency”). The consolidated
financial statements are presented in Ringgit Malaysia (RM), which is also the Company’s functional
currency
(b) Foreign currency transactions
Transactions in foreign currencies are measured in the respective functional currencies of the Company
and its subsidiaries and are recorded on initial recognition in the functional currencies at exchange
rates approximating those ruling at the transaction dates. Monetary assets and liabilities denominated
in foreign currencies are translated at the rate of exchange ruling at the reporting date. Non-monetary
items denominated in foreign currencies that are measured at historical cost are translated using the
exchange rates as at the dates of the initial transactions. Non-monetary items denominated in foreign
currencies measured at fair value are translated using the exchange rates at the date when the fair value
was determined.
Exchange differences arising on the settlement of monetary items or on translating monetary items at
the reporting date are recognised in profit or loss except for exchange differences arising on monetary
items that form part of the Group’s net investment in foreign operations, which are recognised initially in
other comprehensive income and accumulated under foreign currency translation reserve in equity. The
foreign currency translation reserve is reclassified from equity to profit or loss of the Group on disposal
of the foreign operation.
