Page 127 - S P Setia Annual Report 2016
P. 127

S P Setia Berhad Group                                                                                125
          Annual Report 2016




                                                                               Notes To The Financial Statements

                                                                                  For The Financial Year Ended 31 December 2016

          1.   SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)
              (t)   Foreign currencies (cont’d.)


                   (ii)   Transactions and balances in foreign currencies

                       Transactions in currencies other than the functional currency (“foreign currencies”) are translated to the functional currency
                       at the rate of exchange ruling at the date of the transaction.

                       Monetary items denominated in foreign currencies at the reporting date are translated at foreign exchange rates ruling at
                       that date.

                       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
                       profit 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 profit or loss, any corresponding
                       exchange gain or loss is recognised in profit 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 financial 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 profit or loss as part of gain or loss on disposal.

              (u)   Employee benefits

                   (i)   Short term employee benefits

                       Wages, salaries, paid annual leave, paid sick leave, maternity leave, bonuses and non-monetary benefits 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 benefits

                       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.
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