Annual Report - QuamIR

Notes to the Consolidated Financial Statements (Continued)
2 Summary of significant accounting policies (Continued)
2.4 Foreign currency translation (Continued)
(b) Transactions and balances (Continued)
Changes in the fair value of monetary securities
denominated in foreign currency classified as availablefor-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 the
amortised cost are recognised in profit or loss, and other
changes in the 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 difference on nonmonetary
financial assets such as equities classified as
available for sale are included in other comprehensive
income.
2
2.4
(b)
(c)
Group 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:
(c)
(i)
assets and liabilities for each balance sheet
presented are translated at the closing rate at the
date of that balance sheet;
(i)
(ii)
income and expenses for each consolidated 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
(ii)
(iii)
all resulting exchange differences are recognised in
other comprehensive income.
(iii)
88 HKC (Holdings) Limited • Annual Report 2011