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Notes to the

Financial Statements

As at 31 March 2019

2.

Significant accounting policies (cont’d.)

2.3 Summary of significant accounting policies (cont’d.)

(f) Foreign currencies

(i) 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.

(ii) Foreign currency transactions

Transactions in foreign currencies other than the Company’s functional currency (foreign

currencies) are recorded in the functional currencies at exchange rates approximating those

ruling at the transaction dates. At each reporting date, monetary items denominated in foreign

currencies are translated at the rates prevailing on the reporting date. Non-monetary items

carried at fair value that are denominated in foreign currencies are translated at the rates

prevailing on the date when the fair value was determined. Non-monetary items that are

measured in terms of historical cost in a foreign currency are not translated.

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

Kumpulan Fima Berhad

(11817-V)

Annual Report 2019

132