Directors - Boustead Holdings Berhad

Accounting Policies
(e) CURRENCY CONVERSION (cont’d.)
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Goodwill and fair value adjustments arising on the acquisition of foreign operations on or after 1 January
2006 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 exchange rates ruling at the balance sheet date.
Goodwill and fair value adjustments arising on the acquisition of a foreign Subsidiary before 1 January
2006 are deemed to be the assets and liabilities of the parent company and are recorded in RM at the
exchange rates ruling at the date of the acquisition.
The principal closing rates used in the translation of foreign currency amounts are as follows:
Foreign currency 2006 2005
1 US Dollar RM3.52 RM3.78
1 Euro RM4.64 RM4.49
1 Sterling Pound RM6.92 RM6.52
1,000 Indonesian Rupiah RM0.39 RM0.38
1 Singapore Dollar RM2.30 RM2.30
(f) PROPERTY, PLANT AND EQUIPMENT AND DEPRECIATION
All property, plant and equipment are initially stated at cost. Certain land and buildings are subsequently
shown at 1992 and 2001 valuation less subsequent depreciation and impairment loss.
The Directors have not adopted a policy of regular valuation, and have applied the transitional provisions
of IAS 16 (Revised) : Property, Plant and Equipment which permits those assets to be stated at their
prevailing valuations less depreciation. The valuations were determined by independent professional
valuers on the open market basis, and no later valuations were recorded. All other property, plant and
equipment are stated at historical cost less accumulated depreciation and any impairment losses.
Freehold land is not amortised. Leasehold land is amortised in equal instalments over the period of the
respective leases that range from 30 to 999 years. Other assets are depreciated on a straight-line basis
to write off the cost or valuation of the assets to their residual values, over the term of their estimated
useful lives as follows:
Buildings 20 – 80 years
Plant & machinery 7 – 20 years
Furniture & equipment 3 – 10 years
Motor vehicles 3 – 10 years