LEEKEE INDUSTRIES (M) SDN - teo seng capital berhad

TEO SENG CAPITAL BERHAD(Incorporated In Malaysia)Company No : 732762 - TNOTES TO THE FINANCIAL STATEMENTSFOR THE FINANCIAL PERIOD FROM 1 APRIL 2012 TO 31 DECEMBER 20124. ACCOUNTING POLICIES AND STANDARDS (CONT’D)4.2 Summary of Significant Accounting Policies (Cont’d)(o)Functional and foreign currencies(i)Functional and presentation currencyThe individual financial statements of each entity in the Group are presented inthe 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 balancesTransactions in foreign currencies are converted into the respective functionalcurrencies on initial recognition, using the exchange rates approximating thoseruling at the transaction dates. Monetary assets and liabilities at the end of thereporting period are translated at the rates ruling as of that date. Non-monetaryassets and liabilities are translated using exchange rates that existed when thevalues were determined. All exchange differences are recognised in profit orloss except for differences arising from the translation of available-for-saleequity instruments which are recognised in other comprehensive income.(iii) Foreign operationsAssets and liabilities of foreign operations are translated to RM at the rates ofexchange ruling at the end of the reporting period. Revenues and expenses offoreign operations are translated at exchange rates ruling at the dates of thetransactions. All exchange differences arising from translation are taken directlyto other comprehensive income and accumulated in equity under thetranslation reserve. On the disposal of a foreign operation, the cumulativeamount recognised in other comprehensive income relating to that particularforeign operation is reclassified from equity to profit or loss.Goodwill and fair value adjustments arising from the acquisition of foreignoperations are treated as assets and liabilities of the foreign operations and arerecorded in the functional currency of the foreign operations and translated atthe closing rate at the end of the reporting period.Page 40