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Asia Media Group Berhad
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Annual Report 2015
Notes to the Financial Statements
(continued)
pg.
71
3.
Summary of significant accounting policies (cont’d)
(c) Foreign currencies
(i) Functional and presentation currency
The individual financial statements of each entity in the Group are measured using
the currency of the primary economic environment in which the entity operates (“the
functional currency”). The consolidated financial statements are presented in RM,
which is also the Company’s functional currency.
(ii) Foreign currency transactions and balances
Transactions in foreign currencies are measured in the respective functional
currencies of the Company and its subsidiaries and are recorded on initial recognition
in the functional currencies at exchange rates approximating those ruling at the
transaction dates. Monetary assets and liabilities denominated in foreign currencies
are translated at the rate of exchange ruling at the reporting date. Non-monetary items
denominated in foreign currencies that are measured at historical cost are translated
using the exchange rates as at the dates of the initial transactions. Non-monetary
items denominated in foreign currencies measured at fair value are translated using
the exchange rates at the date when the fair value was determined.
Exchange differences arising on the settlement of monetary items or on translating
monetary items at the reporting date are recognised in profit or loss except for
exchange differences arising on monetary items that form part of the Group’s net
investment in foreign operations, which are recognised initially in other comprehensive
income and accumulated under foreign currency translation reserve in equity. The
foreign currency translation reserve is reclassified from equity to profit or loss of the
Group on disposal of the foreign operation.
Exchange differences arising on the translation of non-monetary items carried at fair
value are included in profit or loss for the period except for the differences arising
on the translation of non-monetary items in respect of which gains and losses are
recognised directly in equity. Exchange differences arising from such non-monetary
items are also recognised directly in equity.