Connecting the nation. and Beyond. - ChartNexus

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont’d)
2.2 ECONOMIC ENTITIES IN THE GROUP (cont’d)
(d) Jointly controlled entities (cont’d)
Equity accounting involves recognising the venturer’s share of the post acquisition results of jointly controlled entities
in the profit or loss and its share of post acquisition movements within reserves in reserves. The cumulative post
acquisition movements are adjusted against the cost of the investment and include goodwill on acquisition (net of
accumulated impairment losses).
The Group recognises the portion of gains or losses on the sale of assets by the Group to the joint venture that is
attributable to the other venturers. The Group does not recognise its share of profits or losses from the joint venture
that result from the purchase of assets by the Group from the joint venture until it resells the assets to an independent
party. However, a loss on the transaction is recognised immediately if the loss provides evidence of a reduction in the
net realisable value of current assets or an impairment loss.
Where necessary, adjustments have been made to the financial statements of jointly controlled entities to ensure
consistency of accounting policies with those of the Group.
2.3 FOREIGN CURRENCIES
(a) 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). The financial statements are
presented in Ringgit Malaysia, which is the Company’s functional currency.
(b) Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the
dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and
from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies
are recognised in the profit or loss.
All foreign exchange gains and losses are presented in the statements of comprehensive income within other expenses.
The principal closing rates used in translation of foreign currency amounts were as follows:
/ MRCB laporan tahunan 2011 / 175
Foreign currency 31.12.2011 31.12.2010
RM RM
100 Thai Baht 9.90 10.15
1 Australian Dollar 3.21 3.15
1 UK Pound 4.88 4.79