ANNUAL REPORT 2012 - Wawasan TKH Holdings Berhad

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WAWASAN TKH HOLDINGS BERHAD (540218-A) ANNUAL REPORT 2012 053 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2012 (cont’d) 4. SIGNIFICANT ACCOUNTING POLICIES (cont’d) 4.17 Foreign currencies 4.17.1 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 consolidated financial statements are presented in Ringgit Malaysia, which is the Company’s functional and presentation currency. 4.17.2 Foreign currency translations and balances Transactions in foreign currencies are converted into functional currency at rates of exchange ruling at the transaction dates. Monetary assets and liabilities in foreign currencies at the end of the reporting period are translated into functional currency at rates of exchange ruling at that date unless hedged by forward foreign exchange contracts, in which case the rates specified in such forward contracts are used. All exchange differences arising from the settlement of foreign currency transactions and from the translation of foreign currency monetary assets and liabilities are included in profit or loss in the period in which they arise. Non-monetary items initially denominated in foreign currencies, which are carried at historical cost are translated using the historical rate as of the date of acquisition, and non-monetary items, which are carried at fair value are translated using the exchange rate that existed when the values were determined for presentation currency purposes. 4.17.3 Foreign operations Financial statements of foreign operations are translated at end of the reporting period exchange rates with respect to their assets and liabilities, and at exchange rates at the dates of the transactions with respect to the statements of comprehensive income. All resulting translation differences are recognised as a separate component of equity. In the consolidated financial statements, exchange differences arising from the translation of net investment in foreign operations are taken into equity. When a foreign operation is partially disposed of or sold, exchange differences that were recorded in equity are recognised in profit or loss as part of the gain or loss on disposal. Exchange differences arising on a monetary item that forms part of the net investment of the Company in a foreign operation shall be recognised in profit or loss in the separate financial statements of the Company or the foreign operation, as appropriate. In the consolidated financial statements, such exchange differences shall be recognised initially as a separate component of equity and recognised in profit or loss upon disposal of the net investment. Goodwill and fair value adjustments to the assets and liabilities arising from the acquisition of a foreign operation are treated as assets and liabilities of the acquired entity and translated at the exchange rate ruling at the end of the reporting period. 4.18 Revenue recognition Revenue is measured at the fair value of the consideration received or receivables, net of discounts and rebates. Revenue is recognised to the extent that it is probable that the economic benefits associated with the transaction will flow to the Group, and the amount of revenue and the cost incurred or to be incurred in respect of the transaction can be reliably measured and specific recognition criteria have been met for each of the Group’s activities as follows:
054 WAWASAN TKH HOLDINGS BERHAD (540218-A) ANNUAL REPORT 2012 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2012 (cont’d) 4. SIGNIFICANT ACCOUNTING POLICIES (cont’d) 4.18 Revenue recognition (cont’d) (a) Sale of goods Revenue from sale of goods is recognised when significant risks and rewards of ownership of the goods has been transferred to the customer and where the Group retains neither continuing managerial involvement over the goods, which coincides with delivery of goods and acceptance by customers. (b) Dividend income Dividend income is recognised when the right to receive payment is established. (c) Interest income Interest income is recognised as it accrues, using the effective interest method. (d) Management fees Management fees are recognised on an accrual basis. (e) Rental income Rental income is accounted for on a straight line basis over the lease term of an ongoing lease. 4.19 Warrant reserves Where the Company received a lump sum payment (“proceeds”) from the issuance of new ordinary shares with warrants, the proceeds received shall be assigned to the ordinary shares and warrants based on their respective fair values. The value of the warrants ascertained shall be allocated to warrant reserves from other equity items. Warrant reserve is transferred to the capital reserve account upon the exercise of warrants and the warrant reserve in relation to the unexercised warrants shall remain in equity until the warrants lapsed. 4.20 Operating segments Operating segments are defined as components of the Group that: (a) engage in business activities from which it could earn revenues and incur expenses (including revenues and expenses relating to transactions with other components of the Group); (b) whose operating results are regularly reviewed by the chief operating decision maker of the Group in making decisions about resources to be allocated to the segment and assessing its performance; and (c) for which discrete financial information is available. An operating segment may engage in business activities for which it has yet to earn revenues. The Group reports separately information about each operating segment that meets any of the following quantitative thresholds: (a) its reported revenue, including both sales to external customers and intersegment sales or transfers, is ten (10) per cent or more of the combined revenue, internal and external, of all operating segments.
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WAWASAN TKH HOLDINGS BERHAD (540218
Page 3 and 4: 002 CORPORATE INFORMATION BOARD OF
Page 5 and 6: 004 CHAIRMAN’S STATEMENT (cont’
Page 7 and 8: 006 DIRECTORS' PROFILE ____________
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Page 11 and 12: 010 STATEMENT ON CORPORATE GOVERNAN
Page 17 and 18: 016 STATEMENT ON RISK MANAGEMENT &
Page 19 and 20: 018 AUDIT COMMITTEE REPORT (cont’
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ANNUAL REPORT 2012 - Wawasan TKH Holdings Berhad

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