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166 KUMPULAN WANG PERSARAAN (DIPERBADANKAN) FoR BEttER REtURNS

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

2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
2.17 Foreign Currencies (continued)

(b) Foreign currency transaction and balances (continued)

non-monetary items denominated in foreign currencies measured at historical cost are translated using
the spot exchange rates at the date of the initial transactions. non-monetary items denominated in foreign
currencies measured at fair value are translated using the spot exchange rates at the date when the fair value
was determined.

exchange differences arising from the translation of non-monetary items carried at fair value are recognised
in the statement of comprehensive income for the financial year that it is incurred, with the exception of the
exchange differences arising from the translation of non-monetary items whereby the respective gains and
losses are recognised in other comprehensive income.

(c) Foreign operations
the financial results and financial position of foreign operations with a different functional currency from the
presentation currency of ringgit malaysia of the consolidated financial statements are translated into ringgit
malaysia as follows:

• Assets and liabilities of foreign operations are translated at the closing rate prevailing at the reporting
date;
• Income and expenses for each Statement of Comprehensive Income are translated at the average
exchange rates for the financial year; and
• All resulting exchange differences are recognised directly to Other Comprehensive Income through the
foreign exchange reserves.

in the event of a disposal of a foreign operation, the cumulative amount of exchange differences in relation
to the foreign operation previously recognised in other comprehensive income and accumulated in a
separate component of equity, is reclassified from equity to the statement of comprehensive income (as a
reclassification adjustment) upon the recognition of gains or losses on disposal.

in relation to the partial disposal of a subsidiary that includes a foreign operation, the proportionate share of
the cumulative amount of exchange differences previously recognised in other comprehensive income is
reattributed to the non-controlling interests in that foreign operation. for other partial disposal of a foreign
operation, the proportionate share of the cumulative amount of exchange differences previously recognised
in other comprehensive income is reclassified to the statement of comprehensive income.

goodwill and fair value adjustments arising from the acquisition of foreign operations are recognised as
assets and liabilities of the foreign operations and translated at the closing rate prevailing at the reporting
date. exchange differences arising from the recognition of goodwill and fair value are recognised in other
comprehensive income.