notes to the financial statements
for the financial year ended 31 December 2014 (Continued)
2 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
2.17 Share capital (continued)
(b)
Dividend distribution
Dividend distribution to owners of the Company is debited directly to equity, net of any related income tax benefit and the corresponding liability is
recognised in the period in which the dividends are approved.
(c)
Treasury shares
When share capital recognised as equity is repurchased, the amount of the consideration paid, including directly attributable costs, is recognised as
a deduction from equity. Repurchased shares that are not subsequently cancelled are classified as treasury shares and are presented as a deduction
from equity attributable to owners of the Company. No gain or loss is recognised in profit or loss on the purchase, sale, issue or cancellation of treasury
shares. When treasury shares are reissued by resale, any consideration received, net of any directly attributable incremental transaction costs and the
related income tax effects, is included in equity attributable to owners of the Company.
An amount equivalent to the original purchase cost of the treasury shares will be deducted from retained earnings upon the distribution of any treasury
shares as share dividends.
2.18 Warrants reserve
Proceeds from the issuance of warrants, net of issue costs, are credited to warrants reserve which is non-distributable. Warrants reserve is transferred to the
share premium account upon the exercise of warrants. Warrants reserve in relation to the unexercised warrants were transferred to retained earnings on expiry
of these warrants.
2.19 Foreign currencies
(a)
Functional and presentation currencies
The financial statements of each entity within the Group are measured using the currency of the primary economic environment in which the respective
entity operates (“the functional currency”). The financial statements are presented in Ringgit Malaysia (“RM”), which is the Company’s functional and
presentation currency.
(b)
Transactions and balances
Transactions in foreign currencies are translated into the functional currency at the rate of exchange ruling at the dates of the transactions.
Monetary items denominated in foreign currencies at the reporting date are translated at the foreign currency exchange rates ruling at that date.
Non-monetary items which are measured in terms of historical costs denominated in foreign currencies are translated at the foreign currency exchange
rates ruling at the date of the transaction.
Foreign exchange gains and losses arising on the settlement of monetary items and the translation of monetary assets and liabilities denominated in
foreign currencies are recognised in the profit or loss, except when deferred in other comprehensive income as qualifying cash flow hedges.
When a gain or loss on a non-monetary item is recognised in the profit or loss, any corresponding exchange gain or loss is recognised in profit or
loss. When a gain or loss on a non-monetary item is recognised directly in other comprehensive income, any corresponding exchange gain or loss is
recognised directly in other comprehensive income.
77
Wah Seong Corporation Berhad • Annual Report 2014
