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2.
Summary of significant accounting policies (cont’d.)
2.24Foreign currencies (cont’d.)
2.24.2Transactions and balances (cont’d.)
Foreign exchange gains and losses arising from operations, borrowings (after effects of effective hedges) and amount
due from associates and joint ventures are presented in aggregate after net operating profit in the income statements.
Changes in the fair value of monetary securities denominated in foreign currency classified as available-for-sale 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 carrying amount are recognised in other comprehensive income.
Translation differences on non-monetary financial assets and liabilities such as equities held at fair value through profit
or loss are recognised in profit or loss as part of the fair value gain or loss. Translation differences on non-monetary
financial assets, such as equities classified as available-for-sale, are included in other comprehensive income.
2.24.3Group companies
The results and financial position 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:
– assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance
sheet;
– income and expenses for each income statement are translated at average exchange rates (unless this 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 at the dates of the transactions); and
– all resulting exchange differences are recognised as a separate component of other comprehensive income.
On consolidation, exchange differences arising from the translation of any net investment in foreign entities are
recognised in other comprehensive income.
On the disposal of a foreign operation (that is, a disposal of the Group’s entire interest in a foreign operation, or a
disposal involving loss of control over a subsidiary that includes a foreign operation, a disposal involving loss of joint
control over a joint venture that includes a foreign operation, or a disposal involving loss of significant influence over an
associate that includes a foreign operation), all of the exchange differences relating to that foreign operation recognised
in other comprehensive income and accumulated in the separate component of equity are reclassified to 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 subsidiary that includes a foreign operation, the proportionate share of accumulated exchange differences are
reattributed to non-controlling interests and are not recognised in profit or loss. For all other partial disposals (that
is, reductions in the Group’s ownership interest in associates or joint ventures that do not result in the Group losing
significant influence or joint control) the proportionate share of the accumulated exchange difference is reclassified to
profit or loss.
NOTES TO THE
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2017
[ ]
AirAsia Berhad
REPORTS AND FINANCIAL STATEMENTS
268