directors - The Lion Group

(iv) Beverage Division
Gross invoiced value of goods sold – upon delivery of products and customers acceptance, net of discounts
and returns and when the risk and rewards of ownership have passed to the buyer.
(v) Building Materials
Gross invoiced value of goods sold – upon delivery of products and customers acceptance, net of discounts
and returns and when the risk and rewards of ownership have passed to the buyer.
(vi) Other Divisions
Gross invoiced value of goods sold – upon delivery of products and customers acceptance, net of discounts
and returns and when the risk and rewards of ownership have passed to the buyer.
Tuition fees and other related fees receivable net of scholarship – when services are performed.
Gross dividend income – where the shareholders’ right to receive payment is established.
Foreign Currency Conversion
(i) Transactions in foreign currencies
Transactions in foreign currencies are converted into Ringgit Malaysia at exchange rates prevailing at the
transaction dates or, where settlement has not been made at the end of the financial year, at approximate
exchange rates prevailing at that date. All foreign exchange gains or losses arising from conversion of
foreign currency amounts are dealt with through the income statements.
(ii) Translation of foreign currency operations
For the purpose of consolidation, the financial statements of the foreign incorporated subsidiary companies
have been translated into Ringgit Malaysia as follows:
Assets and liabilities - at closing rate
Share capital - at historical rate
Revenue and expenses - at average rate
The results of foreign associated companies are translated at the average rate of exchange for the financial
year.
All translation gains or losses are taken up and reflected in translation adjustment account under shareholders’
equity.
Difference in exchange arising from the retranslation of the opening net investments in foreign subsidiary
and associated companies, and from the translation of the results of those companies at the average rate,
are taken to shareholders’ equity.
The principal exchange rates used in the conversion of foreign currency amounts are as follows:
49
Average rate Year end rate
2005 2004 2005 2004
RM RM RM RM
1 United States Dollar (“USD”) 3.80 3.80 3.80 3.80
1 Renminbi (“RMB”) 0.46 0.46 0.46 0.46
1 Singapore Dollar (“SGD”) 2.27 2.20 2.24 2.21