annual report 2014
I
Notes to the Financial Statements
31 December 2014 (Cont’d)
75
4.
SIGNIFICANT ACCOUNTING POLICIES (cont’d)
4.15 Foreign currencies (Cont’d)
(b)
Foreign currency translations and balances
Transactions in foreign currencies are converted into functional currencies at rates of exchange ruling at
the transaction dates. Monetary assets and liabilities in foreign currencies at the end of each reporting
period are translated into functional currencies at rates of exchange ruling at that date. All exchange
differences arising from the settlement of foreign currency transactions and from the translation of foreign
currency monetary assets and liabilities are included in profit or loss in the period in which they arise.
Non-monetary items initially denominated in foreign currencies, which are carried at historical cost are
translated using the historical rate as of the date of acquisition, and non-monetary items, which are
carried at fair value are translated using the exchange rate that existed when the values were determined
for presentation currency purposes.
(c)
Foreign operations
Financial statements of foreign operations are translated at end of the reporting period exchange rates
with respect to their assets and liabilities, and at exchange rates at the dates of the transactions with
respect to the statements of profit or loss and other comprehensive income. All resulting translation
differences are recognised as a separate component of equity.
In the consolidated financial statements, exchange differences arising from the translation of net
investment in foreign operations are taken to equity. When a foreign operation is partially disposed of
or sold, exchange differences that were recorded in equity are recognised in profit or loss as part of the
gain or loss on disposal.
Exchange differences arising on a monetary item that forms part of the net investment of the Company
in a foreign operation shall be recognised in profit or loss in the separate financial statements of the
Company or the foreign operation, as appropriate. In the consolidated financial statements, such exchange
differences shall be recognised initially as a separate component of equity and recognised in profit or
loss upon disposal of the net investment.
Goodwill and fair value adjustments to the assets and liabilities arising from the acquisition of a foreign
operation are treated as assets and liabilities of the acquired entity and translated at the exchange rate
ruling at the end of each reporting period.
4.16 Revenue recognition
Revenue is measured at the fair value of the consideration received or receivables, net of discounts and rebates.
Revenue is recognised to the extent that it is probable that the economic benefits associated with the transaction
would flow to the Group, and the amount of revenue and the cost incurred or to be incurred in respect of the
transaction can be reliably measured and specific recognition criteria have been met for each of the activities
of the Group as follows:
(a)
Sale of goods
Revenue from sale of goods is recognised when significant risk and rewards of ownership of the goods has
been transferred to the customer and where the Group retains neither continuing managerial involvement
over the goods, which coincides with delivery of goods and acceptance by customers.
(b)
Dividend income
Dividend income is recognised when the right to receive payment is established.
(c)
Interest income
Interest income is recognised as it accrues, using the effective interest method.
