ENRICHING LIVES EXPANDING HORIZONS - Maxis

MAXIS BERHAD
ANNUAL REPORT 2011
123
3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(b) Foreign currencies (continued)
(iii) Group companies
The results and financial position of all the Group entities (none of which has the currency of a hyperinflationary
economy) that have a functional currency different from the presentation currency are translated into the presentation
currency as follows:
• assets and liabilities for each statement of financial position presented are translated at the closing rate at the date
of that statement of financial position;
• income and expenses for each income statement are translated at average exchange rates (unless this average is not
a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case
income and expenses are translated at the rate on the dates of the transactions); and
• all resulting exchange differences are recognised as a separate component of equity.
On consolidation, exchange differences arising from the translation of the net investment in foreign operations are taken
to shareholders’ equity. When a foreign operation is disposed of, exchange differences that were recorded in equity are
recognised in the income statement as part of the gain or loss on sale.
(iv) Closing rates
The principal closing rates used in translation of foreign currency amounts were as follows:
FOREIGN CURRENCIES 2011 2010
RM
RM
1 Euro (“EURO”) 4.10 4.09
1 Pound Sterling (“GBP”) 4.93 4.76
1 Singapore Dollar (“SGD”) 2.45 2.40
1 Special Drawing Rights (“SDR”) * 4.86 4.72
1 United States Dollar (“USD”) 3.17 3.09
100 Indian Rupee (“INR”) 5.97 6.87
100 Indonesian Rupiah (“IDR”) 0.04 0.03
* Represents the closing international accounting settlement rate with international carriers.
(c) Property, plant and equipment
Property, plant and equipment are stated at cost less accumulated depreciation and impairment losses. Cost includes
expenditure that is directly attributable to the acquisition of property, plant and equipment. The cost of certain property,
plant and equipment items include the costs of dismantling and removing the item and restoring the sites on which these
items are located. These costs are due to obligations incurred either when the items were installed or as a consequence of
having used these items during a particular period.