Utusan Melayu (Malaysia) Bhd - Announcements
Utusan Melayu (Malaysia) Bhd - Announcements
Utusan Melayu (Malaysia) Bhd - Announcements
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Notes T O T HE A CCOUNTS for the year ended 31 December 1999<br />
1. BASIS OF PREPARATION OF THE ACCOUNTS<br />
The accounts of the Group and of the Company have been prepared in accordance with the applicable approved Accounting<br />
Standards in <strong>Malaysia</strong> and the provisions of the Companies Act, 1965.<br />
2. SIGNIFICANT ACCOUNTING POLICIES<br />
All significant accounting policies set out below are consistent with those applied in the previous financial year.<br />
Accounting convention<br />
The accounts are prepared under the historical cost convention, modified by the revaluation of land, buildings and plant and<br />
machinery.<br />
Basis of consolidation<br />
The consolidated profit and loss account and balance sheet include the accounts of the Company and all its subsidiary companies<br />
made up to the end of the financial year. The results of subsidiary companies acquired or disposed of during the financial year<br />
are included in the consolidated profit and loss account from the date of their acquisition or up to the date of disposal. Intercompany<br />
transactions are eliminated on consolidation and the consolidated accounts reflect external transactions only.<br />
The excess of the purchase price over the fair value of net assets of subsidiary companies at the date of acquisition is recognised<br />
as goodwill on consolidation and is written off in the year of acquisition.<br />
Associated companies<br />
The Group treats as associated companies those companies in which a long term equity interest of between 20 and 50 percent<br />
is held and where it exercises significant influence through management participation.<br />
The Group’s share of profits less losses of associated companies is included in the consolidated profit and loss account and the<br />
Group’s share of post-acquisition retained profits and reserves is added to the cost of investments in the consolidated balance<br />
sheet. These amounts are taken from the latest audited accounts of the associated companies with the same financial year end<br />
as the Group and where the financial year ends are not coterminous, the amounts are taken from the latest available<br />
management accounts.<br />
Investments<br />
Investments in quoted and unquoted shares held as long term investments are stated at cost unless there has been a permanent<br />
diminution in value, in which case, a provision is made. Income from these investments is included in the profit and loss<br />
account on a receipt basis.<br />
Currency translations<br />
Transactions in foreign currencies are translated to Ringgit <strong>Malaysia</strong> at exchange rates ruling at the transaction dates or<br />
at contracted rates, where applicable. At balance sheet date, monetary assets and liabilities resulting from foreign currency<br />
transactions are translated into Ringgit <strong>Malaysia</strong> at exchange rates ruling at the date or at contracted rates, where applicable.<br />
Exchange gain and losses are dealt with through the profit and loss account.<br />
The accounts of the foreign subsidiary company are translated into Ringgit <strong>Malaysia</strong> at the rates of exchange ruling at the<br />
balance sheet date. Exchange differences arising on the translation are included in the exchange fluctuation reserve account.<br />
40 <strong>Utusan</strong> <strong>Melayu</strong> (<strong>Malaysia</strong>) Berhad