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Gamuda Berhad (29579-T) • Annual Report 2012
2.
Summary of significant accounting policies (cont’d.)
2.21 Revenue recognition (cont’d.)
a)
Revenue (cont’d.)
(v)
Dividend income
Dividend income is recognised when the right to receive payment is established.
b)
Other income
(i)
Interest income
Interest is recognised on a time proportion basis that reflects the effective yield on the asset.
(ii)
Rental income
Rental income is recognised on a straight-line basis over the term of the lease.The aggregate cost
of incentives provided to lessees is recognised as a reduction of rental income over the lease
term on a straight-line basis.
2.22 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 Ringgit Malaysia (RM), which is also the Company’s functional
currency.
(ii)
Foreign currency transactions
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.
NoTES To ThE FINANCIAL STATEMENTS
31 July 2012