Annual Report 2012, PDF - Axiata Group Berhad - Investor Relations

NOTES TO THEFINANCIAL STATEMENTSFOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2012 (CONTINUED)3. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)(x) Foreign currencies (continued)(iii) Group companies (Consolidated financial statements) (continued)Exchange differences arising on a monetary item that forms part of a reporting entity’s net investmentin a foreign operation is recognised in profit or loss in the separate financial statements of the reportingentity or the individual financial statements of the foreign operation, as appropriate. In the consolidatedfinancial statements, such exchange differences are recognised initially in other comprehensive incomeand reclassified from equity to profit or loss on disposal of the net investment.On the disposal of a foreign operation, all of the exchange differences relating to that foreign operationrecognised in other comprehensive income and accumulated in the separate component of equity arereclassified to consolidated profit or loss. In the case of a partial disposal that does not result in theGroup losing control over a subsidiary that includes a foreign operation, the proportionate share ofaccumulated exchange differences are re-attributed to non-controlling interests and are not recognisedin profit or loss. For all other partial disposals the proportionate share of the accumulated exchangedifference is reclassified to consolidated profit or loss.(y) Segment reportingOperating segments are reported in a manner consistent with the internal reporting provided to the ChiefOperating Decision maker. The Chief Operating Decision maker, who is responsible for allocating resourcesand assessing performance of the operating segments, has been identified as the Board of Directors thatmakes strategic decisions.(z) Non-current assets (or disposal groups) held-for-saleNon-current assets (or disposal groups) are classified as assets held for sale when their carrying amount isto be recovered principally through a sale transaction and a sale is considered highly probable. They arestated at the lower of carrying amount and FVLCS.(aa) Government grantsAs a Universal Service Provider (“USP”), the Group is entitled to claim certain qualified expenses fromthe relevant authorities in relation to USP projects. The claim qualifies as a government grant and isrecognised at fair value where there is a reasonable assurance that the grant will be received and theGroup will comply with all attached conditions.Government grants relating to costs are recognised in the profit of loss over the period necessary tomatch them with the costs they are intended to compensate.Government grants relating to the purchase of assets are included in non-current liabilities as deferredincome and are credited to the profit or loss on the straight line basis over the expected life of therelated assets.200