Hatching For The Future - teo seng capital berhad

Teo Seng Capital Berhad
Notes To The Financial Statements
For The Financial Year Ended 31 March 2012
4.
ACCOUNTING POLICIES AND STANDARDS (cont’d)
4.2
Summary of Significant Accounting Policies (cont’d)
(n) Related parties
A party is related to an entity if :
(i) directly, or indirectly through one or more intermediaries, the party :
• controls, is controlled by, or is under common control with, the entity (this includes parents,
subsidiaries and fellow subsidiaries) ;
• has an interest in the entity that gives it significant influence over the entity ; or
• has joint control over the entity.
(ii)
the party is an associate of the entity ;
(iii)
the party is a joint venture in which the entity is a venturer ;
(iv)
the party is a member of the key management personnel of the entity or its parent ;
(v)
the party is a close member of the family of any individual referred to in (i) or (iv) ;
(vi)
the party is an entity that is controlled, jointly controlled or significantly influenced by, or for which
significant voting power in such entity resides with, directly or indirectly, any individual referred to in (iv) or
(v) ; or
(vii)
the party is a post-employment benefit plan for the benefit of employees of the entity, or of any entity that
is a related party of the entity.
Close members of the family of an individual are those family members who may be expected to influence, or
be influenced by, that individual in their dealings with the entity.
(o)
Functional and foreign currencies
(i) Functional and presentation currency
The individual financial statements of each entity in the Group are presented in the currency of the
primary economic environment in which the entity operates, which is the functional currency.
The consolidated financial statements are presented in Ringgit Malaysia (“RM”), which is the Company’s
functional and presentation currency.
(ii)
Transactions and balances
Transactions in foreign currencies are converted into the respective functional currencies on initial
recognition, using the exchange rates approximating those ruling at the transaction dates. Monetary
assets and liabilities at the end of the reporting period are translated at the rates ruling as of that date.
Non-monetary assets and liabilities are translated using exchange rates that existed when the values
were determined. All exchange differences are recognised in profit or loss.
Annual Report 2012
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