For the financial year ended 31 December 2015
70
HAW PAR CORPORATION LIMITED
2. SIGNIFICANT ACCOUNTING POLICIES
(CONTINUED)
(q) Currency translation
(continued)
(2) Transactions and balances (continued)
When a foreign operation is disposed of or any borrowings forming part of the net investment of the foreign
operation are repaid, a proportionate share of the accumulated translation differences is reclassified to profit
or loss, as part of the gain or loss on disposal.
Non-monetary items that are measured at fair values in foreign currencies are translated using the exchange
rates at the date when the fair values are determined. Currency translation differences on non-monetary
items whereby gains or losses are recognised in other comprehensive income, such as equity investments
classified as available-for-sale financial assets are included in the fair value reserve.
(3) Translation of Group entities’ financial statements
The results and financial position of Group entities (none of which has the currency of a hyperinflationary
economy) that are in functional currencies different from the presentation currency are translated into the
presentation currency as follows:
(i) Assets and liabilities are translated at the closing exchange rates at the reporting date;
(ii) Income and expenses 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
(iii) All resulting currency exchange differences are recognised in other comprehensive income and
accumulated in currency translation reserve within equity. These currency translation differences are
reclassified to profit or loss on disposal or partial disposal of the entity giving rise to such reserve.
Goodwill and fair value adjustments arising from the acquisition of a foreign entity on or after
1 January 2005 are treated as assets and liabilities of the foreign entity and translated at the closing exchange
rates at the date of the end of the reporting date. For acquisitions prior to 1 January 2005, the exchange
rates at the dates of the acquisition are used.
(r) Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the management
committee and Investment Committee whose members are responsible for allocating resources and assessing
performance of the operating segments.
(s) Cash and cash equivalents
For purpose of presentation in the consolidated statement of cash flows, cash and cash equivalents include cash
and bank balances, deposits with financial institutions, bank overdrafts, if any and excludes bank deposits pledged
as security. For cash subjected to restriction, assessment is made on the economic substance of the restriction and
whether they meet the definition of cash and cash equivalents.
NOT E S TO T H E F I NAN C I A L S TAT EME N T S
(CONTINUED)
