69
ANNUAL REPORT 2015/2016
Notes to Financial Statements
2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
(vi)
Foreign currency
Foreign currency transactions
Transactions in a currency other than the functional currency (“foreign currency”) are translated into
the functional currency using the exchange rates at the dates of the transactions. Currency exchange
differences resulting from the settlement of such transactions and from the translation of monetary
assets and liabilities denominated in foreign currencies at the closing rates at the balance sheet date
are recognised in profit or loss.
Non-monetary items measured at fair values in foreign currencies are translated using the exchange
rates at the date when the fair values are determined. Non-monetary items in a foreign currency that
are measured in terms of historical cost are translated using the exchange rate at the date of the
transaction.
Foreign operations
The results and balance sheets of all the Group entities (none of which has the currency of a
hyperinflationary economy) that have a functional currency different from the presentation currency
are translated into the presentation currency as follows:
J
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(ii)
income and expenses are translated at average exchange rates (unless the average is not a
reasonable approximation of the cumulative effect of the rates prevailing on the transaction
dates, in which case income and expenses are translated using the exchange rates at the dates
PG UIF USBOTBDUJPOT BOE
(iii)
all resulting currency translation differences are recognised in other comprehensive income
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differences are reclassified to profit or loss on disposal of the entity giving rise to such reserve.
When the settlement of a monetary item receivable from or payable to a foreign operation is neither
planned nor likely to occur in the foreseeable future, foreign exchange gains and losses arising from
such a monetary item that are considered to form part of a net investment in a foreign operation are
SFDPHOJTFE JO 0$* BOE BSF QSFTFOUFE JO UIF GPSFJHO DVSSFODZ USBOTMBUJPO SFTFSWF JO FRVJUZ
