Page 167 - KWAP_AR2022

FoR BetteR RetuRns Annual Report 2022 165

notes to the
financial statements
for the year ended 31 december 2022

2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
2.16 Income Tax (continued)

(b) Deferred tax (continued)

deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss.
such deferred tax items are recognised in correlation to the underlying transaction either in other
comprehensive income or directly in equity. deferred tax arising from a business combination is adjusted
against the respective goodwill on acquisition.

deferred tax assets and liabilities are offset, if a legally enforceable right exists to set off the current tax
assets against the current tax liabilities, whereby the deferred taxes relate to the same taxable entity and
taxation authority.
2.17 Foreign Currencies

(a) Functional and presentation currency
the individual financial statements of each entity in the group is measured using the currency of the
primary economic environment in which the entity operates (functional currency). the consolidated financial
statements are presented in ringgit malaysia (rm) being the functional and presentation currency of the
group and of KWap.
(b) Foreign currency transaction and balances

transactions in foreign currencies are measured in the respective functional currencies of KWap and its
subsidiaries and are recorded on the initial recognition in the functional currencies at the exchange rates
prevailing on the transaction dates.
monetary assets and liabilities denominated in foreign currencies are translated at the functional currency
spot exchange rate at the reporting date.

exchange differences arising on the settlement of monetary items or on the translation of monetary items
at the reporting date are recognised in the statement of comprehensive income with the exception of the
exchange differences arising on monetary items that form part of the group’s net investment in foreign
operations. such items are recognised initially in other comprehensive income and accumulated under the
foreign exchange reserves in other comprehensive income.
changes in the fair value of monetary securities denominated in foreign currency classified as fVoci income
are analysed between translation differences resulting from changes in the amortised cost of the security
and other changes in the carrying amount of the security. translation differences related to changes in
amortised cost are recognised in profit or loss, and other changes in the carrying amount are recognised in
other comprehensive income.