Page 116 - S P Setia Annual Report 2013
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114 | Financial Statements S P SETIA BERHAD GROUP Annual Report 2013





NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2013 (CONT’D)






1. SiGniFicant accOUntinG POlicieS (cOnt’D)

(u) Foreign currencies (cont’d)
(ii) Transactions and balances in foreign currencies (cont’d)

Non-monetary items which are measured in terms of historical costs denominated in foreign currencies are translated at foreign
exchange rates ruling at the date of the transaction.

Non-monetary items which are measured at fair values denominated in foreign currencies are translated at the foreign exchange
rates ruling at the date when the fair values were determined.
Exchange differences arising on the settlement of monetary items and the translation of monetary items are included in proft or
loss for the period.

When a gain or loss on a non-monetary item is recognised directly in equity, any corresponding exchange gain or loss is recognised
directly in equity. When a gain or loss on a non-monetary item is recognised in proft or loss, any corresponding exchange gain or
loss is recognised in proft or loss.

(iii) Translation of foreign operations

For consolidation purposes, all assets and liabilities of foreign operations that have a functional currency other than RM (including
goodwill and fair value adjustments arising from the acquisition of the foreign operations) are translated at the exchange rates
ruling at the reporting date.

Income and expense items are translated at exchange rates approximating those ruling on transactions dates.

All exchange differences arising from the translation of the fnancial statements of foreign operations are dealt with through the
exchange translation reserve account within equity. On the disposal of a foreign operation, the exchange translation differences
relating to that foreign operation are recognised in proft or loss as part of gain or loss on disposal.

(v) Employee benefts
(i) Short term employee benefts

Wages, salaries, paid annual leave, paid sick leave, bonuses and non-monetary benefts are recognised as an expense in the period
in which the associated services are rendered by employees other than those that are attributable to property development
activities or construction contract in which case such expenses are recognised in the property development costs or contract costs.
(ii) Post-employment benefts

The Company and its subsidiaries incorporated in Malaysia make contributions to the Employees Provident Fund (“EPF”) and
foreign subsidiaries make contributions to their respective countries’ statutory pension schemes. The contributions are recognised
as a liability after deducting any contributions already paid and as expenses in the period in which the employees render their
services.

(iii) Share-based payment transactions

The Group operates an equity-settled share-based long term incentive plan (“LTIP” or “Scheme”), which comprises the Employee
Share Grant Plan (“ESGP”) and Employee Share Option Scheme (“ESOS”) for its employees and Executive Directors.
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