3.
SIGNIFICANT ACCOUNTING POLICIES (CONT'D)
3.16
Foreign Currency Transactions
Transactions in foreign currencies are translated to the functional currency of the Group at exchange
rates at the dates of the transactions.
Monetary assets and liabilities denominated in foreign currencies at the end of the reporting period
are translated to the functional currency at the exchange rate at that date.
Non-monetary assets and liabilities measured at historical cost in a foreign currency at the end of
the reporting period are translated to the functional currency at the exchange rate at the date of the
transaction except for those measured at fair value shall be translated at the exchange rate at the
date when the fair value was determined.
Exchange differences arising from the settlement of foreign currency transactions and from the
translation of foreign currency monetary assets and liabilities are recognised in profit or loss.
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 or losses are recognised directly in other comprehensive
income.
3.17
Share Capital
An equity instrument is any contract that evidences a residual interest in the assets of the Group and
the Company after deducting all of its liabilities. Ordinary shares are equity instruments.
Share capital represents the nominal value of shares that have been issued. Dividends on ordinary
shares are accounted for in shareholder’s equity as an appropriation of unappropriated profits and
recognised as a liability in the period in which they are declared.
Share premium includes any premiums received upon issuance of share capital. Any transaction
costs associated with the issuing of shares are deducted from share premium, net of any related
income tax benefits.
3.18
Segment Reporting
An operating segment is a component of the Group that engages in business activities from which
it may earn revenue and incur expenses, including revenue and expenses that relate to transactions
with any of the Group’s other components. An operating segment’s operating results are reviewed
regularly by the chief operating decision maker, who in this case are the Executive Directors of the
Group, to make decisions about resources to be allocated to the segment and assess its performance,
and for which discrete financial information is available.
3.19
Contingencies
A contingent liability or asset is a possible obligation or asset that arises from past events and whose
existence will be confirmed only by the occurrence or non-occurrence of uncertain future events not
wholly within the control of the Group and of the Company.
Contingent liabilities and assets are not recognised in the statements of financial position of the
Group and of the Company.
NOTES TO THE FINANCIAL STATEMENTS
31 DECEMBER 2014 (CONT’D)
Pentamaster Corporation Berhad
(572307-U)
•
Annual Report 2014
58
