ENRICHING LIVES EXPANDING HORIZONS - Maxis

122
Financial Statements
NOTES TO THE
FINANCIAL STATEMENTS
31 December 2011
Continued
3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(a) Basis of consolidation (continued)
(ii) Changes in ownership interests in subsidiaries without change of control
Transactions with non-controlling interests that do not result in loss of control are accounted for as equity transactions
– that is, as transactions with the owners in their capacity as owners. The difference between fair value of any
consideration paid and the relevant share acquired of the carrying value of net assets of the subsidiary is recorded in
equity. Gains or losses on disposals to non-controlling interests are also recorded in equity.
Previously, the Group applied a policy of treating transactions with non-controlling interests as transactions with parties
external to the Group. Accordingly, disposals resulted in gains or losses and purchases resulted in the recognition
of goodwill, being the difference between consideration paid and the relevant share of the carrying value of net assets
of the subsidiary acquired.
(iii) Disposal of subsidiaries
When the Group ceases to have control, any retained interest in the entity is re-measured to its fair value at the date
when control is lost, with the change in carrying amount recognised in the income statement. The fair value is the initial
carrying amount for the purposes of subsequently accounting for the retained interest as an associate, joint venture or
financial asset. In addition, any amounts previously recognised in other comprehensive income in respect of that entity
are accounted for as if the Group had directly disposed of the related assets or liabilities. This may mean that amounts
previously recognised in other comprehensive income are reclassified to the income statement.
(b) Foreign currencies
(i) 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”). These financial statements are
presented in Ringgit Malaysia (“RM”), which is the Company’s functional and presentation currency.
When there is a change in an entity’s functional currency, the entity shall apply the translation procedures applicable to
the new functional currency prospectively from the date of the change.
(ii) Transactions and balances
Transactions in foreign currencies are translated to the respective functional currencies of the Group entities using the
exchange rates prevailing at the date of the transactions.
Monetary assets and liabilities in foreign currencies at the reporting date are translated into the functional currency at
exchange rates ruling at the date.
Exchange differences arising from the settlement of foreign currency transactions and the translation of monetary assets
and liabilities denominated in foreign currencies at year end are recognised in the income statement.