LEEKEE INDUSTRIES (M) SDN - teo seng capital berhad

TEO SENG CAPITAL BERHAD
(Incorporated In Malaysia)
Company No : 732762 - T
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2011
4. ACCOUNTING POLICIES AND STANDARDS (CONT’D)
4.2 Summary of Significant Accounting Policies (Cont’d)
(o)
Functional and foreign currencies
(i)
Functional currency
The management has determined the currency of the primary economic
environment in which the Group operates i.e. functional currency to be in
Ringgit Malaysia (“RM”).
(ii)
Transactions and balances in foreign currencies
Transactions in foreign currencies during the financial year are converted into
RM at rates of exchange ruling at the dates of transactions unless hedged by
forward foreign exchange contracts, in which case the rates specified in such
forward foreign exchange contracts are used. Monetary assets and liabilities in
foreign currencies at the end of the reporting period are translated into RM at
rates of exchange ruling at that date unless hedged by forward foreign
exchange contracts, in which case the rates specified in such forward foreign
exchange contracts are used.
All gains or losses arising from the settlement of foreign currency transactions
and from translating foreign monetary assets and liabilities are recognised in
profit or loss.
(iii) Translation of foreign currency financial statements
Assets and liabilities of foreign operations are translated to RM at the rates of
exchange ruling at the end of the reporting period. Revenues and expenses of
foreign operations are translated at exchange rates ruling at the dates of the
transactions. All exchange differences arising from translation are taken directly
to other comprehensive income and accumulated in equity under the
translation reserve. On the disposal of a foreign operation, the cumulative
amount recognised in other comprehensive income relating to that particular
foreign operation is reclassified from equity to profit or loss.
Goodwill and fair value adjustments arising from the acquisition of foreign
operations are treated as assets and liabilities of the foreign operations and are
recorded in the functional currency of the foreign operations and translated at
the closing rate at the end of the reporting period.
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