notes to the financial statements
for the financial year ended 31 December 2014 (Continued)
2 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
2.19 Foreign currencies (continued)
(c)
Translation of foreign operations
On consolidation, all assets and liabilities of foreign operations that have a functional currency other than Ringgit Malaysia, including goodwill and fair
value adjustments arising on acquisition, are translated at the exchange rates ruling at the reporting date.
Income and expense items are translated at average exchange rates.
All exchange differences arising from the translation of the financial statements of foreign operations are taken to other comprehensive income. Upon
disposal of a foreign operation, the exchange translation differences relating to those foreign operations that were recorded within other comprehensive
income are recognised in the profit or loss as part of the gain or loss on disposal.
In the case of a partial disposal that does not result in the Group losing control over a foreign operation, the proportionate share of accumulated
exchange differences based on effective equity interest are re-attributed to non-controlling interests and are not recognised in profit or loss.
2.20 Financial assets
(a)
Classification
The Group and the Company classify its financial assets in the following categories: at fair value through profit or loss, loans and receivables and
available-for-sale. The classification depends on the nature of the asset and the purpose for which the assets were acquired. The classification of
financial assets is determined at initial recognition.
(i)
Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss are either financial assets held for trading or those designated at fair value through profit
or loss at inception. A financial asset is classified as held for trading if it is acquired principally for the purpose of selling in the short term.
Financial assets designated at fair value through profit or loss at inception, are those that are managed and their performances are evaluated
on a fair value basis, in accordance with a documented Group investment strategy. Derivatives are also categorised as held for trading unless
they are designated as hedges. Assets in this category are classified as current assets if they are either held for trading or are expected to be
realised within 12 months after the reporting date. Otherwise, they are classified as non-current.
(ii)
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They
are presented as current assets, except for those maturing later than 12 months after the reporting date which are presented as non-current
assets.
(iii)
Available-for-sale financial assets
Available-for-sale financial assets are non-derivatives that are either designated in this category or not classified in any of the other categories.
They are presented within non-current assets unless management intends to dispose of the assets within 12 months after the reporting date.
Available-for-sale reserve represents the cumulative fair value changes, net of tax, of available-for-sale financial assets until they are disposed
or impaired.
78
Wah Seong Corporation Berhad • Annual Report 2014
