Utusan Melayu (Malaysia) Bhd - Announcements

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