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Annual Report 2020
152
Notes to the Financial Statements
As at 31 March 2020
kumpulan Fima Berhad
(197201000167)(11817-V)
2.
Significant accounting policies (cont’d.)
2.4 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.
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.
(ii) Foreign currency transactions
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.