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NOTES TO THE FINANCIAL STATEMENTS
31 MARCH 2018
Kumpulan Fima Berhad (11817-V) •
Annual Report 2018
2.
Significant accounting policies (cont’d.)
2.3 Summary of significant accounting policies (cont’d.)
(g) Foreign currencies (cont’d.)
(ii) Foreign currency transactions (cont’d.)
Exchange differences arising on the settlement of monetary items, and on the translation of monetary items,
are included in the profit or loss for the period except for exchange differences arising on monetary items that
form part of the Group’s net investment in foreign operation. These are initially taken directly to the foreign
currency translation reserve within equity until the disposal of the foreign operations, at which time they are
recognised in profit or loss. Exchange differences arising on monetary items that form part of the Company’s
net investment in foreign operation are recognised in profit or loss in the Company’s separate financial
statements or the individual financial statements of the foreign operation, as appropriate.
Exchange difference arising on the retranslation of non-monetary items carried at fair value are included in
profit or loss for the period except for the differences arising on the retranslation of non-monetary items in
respect of which gains and losses are recognised directly in equity. Exchange differences arising from such
non-monetary items are also recognised directly in equity.
(iii) Foreign operations
The results and financial position of foreign operations that have a functional currency different from the
presentation currency, RM of the consolidated financial statements are translated into RM as follows:
-
Assets and liabilities for each statement of financial position presented are translated at the closing rate
prevailing at the reporting date;
-
Income and expenses for each profit or loss are translated at average exchange rates for the year,
which approximates the exchange rates at the dates of the transactions; and
-
All resulting exchange differences are taken to the foreign currency translation reserve within equity.
(h) Property, plant and equipment and depreciation
All items of property, plant and equipment are initially recorded at cost. The cost of an item of property, plant and
equipment is recognised as an asset, if and only if, it is probable that future economic benefits associated with the
item will flow to the Group and the cost of the item can be measured reliably.
Subsequent to recognition, property, plant and equipment except for certain freehold land and buildings are
measured at cost less accumulated depreciation and accumulated impairment losses. When significant parts
of property, plant and equipment are required to be replaced in intervals, the Group recognises such parts as
individual assets with specific useful lives and depreciation, respectively. Likewise, when a major inspection is
performed, its cost is recognised in the carrying amount of the plant and equipment as a replacement if the
recognition criteria is satisfied. All other repair and maintenance costs are recognised in profit or loss as incurred.