ANNUAL REPORT 2016
51
Techno
Dex
Berhad
(627634-A)
4. SIGNIFICANT ACCOUNTING POLICIES (continued)
4.4 FUNCTIONAL AND FOREIGN CURRENCIES (continued)
(b) Transactions and Balances
Transactions in foreign currencies are converted into the respective functional currencies on initial
recognition, using the exchange rates approximating those ruling at the transaction dates. Monetary
assets and liabilities at the end of the reporting period are translated at the rates ruling as of that date.
Non-monetary assets and liabilities are translated using exchange rates that existed when the values
were determined. All exchange differences are recognised in profit or loss.
(c) Foreign Operations
Assets and liabilities of foreign operations are translated to RM at the rates of exchange ruling at the
end of the reporting period. Revenues and expenses of foreign operations are translated at exchange
rates ruling at the dates of the transactions. All exchange differences arising from translation are taken
directly to other comprehensive income and accumulated in equity under the translation reserve. On
the disposal of a foreign operation, the cumulative amount recognised in other comprehensive income
relating to that particular foreign operation is reclassified from equity to profit or loss.
Goodwill and fair value adjustments arising from the acquisition of foreign operations 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 closing rate at the end of the reporting period except for those business
combinations that occurred before the date of transition (1 January 2011) which are treated as assets
and liabilities of the Company and are not retranslated.
4.5 FINANCIAL INSTRUMENTS
Financial instruments are recognised in the statements of financial position when the Group has become a
party to the contractual provisions of the instruments.
Financial instruments are classified as liabilities or equity in accordance with the substance of the contractual
arrangement. Interest, dividends, gains and losses relating to a financial instrument classified as a liability, are
reported as an expense or income. Distributions to holders of financial instruments classified as equity are
charged directly to equity.
Financial instruments are offset when the Group has a legally enforceable right to offset and intends to settle
either on a net basis or to realise the asset and settle the liability simultaneously.
A financial instrument is recognised initially, at its fair value plus, in the case of a financial instrument not at fair
value through profit or loss, transaction costs that are directly attributable to the acquisition or issue of the
financial instrument.
Financial instruments recognised in the statements of financial position are disclosed in the individual policy
statement associated with each item.
(a) Financial Assets
On initial recognition, financial assets are classified as either financial assets at fair value through profit or
loss, held-to-maturity investments, loans and receivables financial assets, or available-for-sale financial
assets, as appropriate.
NOTES TO THE
FINANCIAL STATEMENTS
(continued)
