Bursa Malaysia • Annual Report 2013
118
Financial Reports
2. Significant accounting policies (cont’d.)
2.4 Summary of significant accounting policies (cont’d.)
(q) Foreign currency (cont’d.)
(iii) Malaysian subsidiary with foreign currency as its functional currency
The results and financial position of a subsidiary that has a functional currency different from the presentation currency of the consolidated
financial statements are translated into RM as follows:
• Assets and liabilities for each statement of financial position presented are translated at the closing rate prevailing at the financial year
end;
• Income and expenses for each statement of comprehensive income or separate income statement presented are translated at average
monthly exchange rates, which approximates the exchange rates at the dates of the transactions; and
• All resulting exchange differences are recognised directly in other comprehensive income. On disposal of a subsidiary with foreign
currency as its functional currency, the cumulative amount recognised in other comprehensive income and accumulated in equity under
foreign currency translation reserve relating to that particular subsidiary is recognised in profit or loss.
(r) Contingencies
A contingent liability or asset is a possible obligation or benefit that arises from past events and whose existence will be confirmed only by the
occurrence or non-occurrence of uncertain future event(s) 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 in the current and
previous financial year ends.
2.5 Significant accounting judgements and estimates
Key sources of estimation uncertainty
The preparation of financial statements in accordance with MFRSs requires the use of certain accounting estimates and exercise of judgement.
Estimates and judgements are continually evaluated and are based on past experience, reasonable expectations of future events and other factors.
The key assumptions concerning the future and other key sources of estimation uncertainty at the financial year end, that have a significant risk of
causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below:
(a) Impairment of computer hardware and software
The Group and the Company review its computer hardware and software at each financial year end to determine if there is any indication of
impairment. If any such indication exists, the asset’s recoverable amount is estimated to determine the amount of impairment loss. The Group
and the Company carried out the impairment test based on a variety of estimation including the value-in-use of the CGUs to which the computer
hardware and software are allocated to. Estimating the value-in-use requires the Group and the Company to make an estimate of the expected
future cash flows from the CGU and also to choose a suitable discount rate in order to calculate the present value of those cash flows. The carrying
amounts of computer hardware and software as at the financial year end are disclosed in Notes 12 and 13 respectively.
Notes to the Financial Statements
31 December 2013
