Eng - IOI Group

notestothefinancialstatements cont’d3 SIGNIFICANT ACCOUNTING POLICIES cont’d3.4 Revenue Recognition cont’dDividend incomeDividend income is recognised when shareholder’s right to receive payment is established.Rental incomeRental income from investment properties is recognised based on accrual basis.Club membership licence feeClub membership licence fees, which are not refundable, are recognised as income when received.3.5 Foreign CurrencyTransactions in foreign currencies are converted into Ringgit Malaysia at rates of exchange ruling ontransaction dates. Monetary assets and liabilities denominated in foreign currencies at the balance sheetdate are translated into Ringgit Malaysia at the approximate rates of exchange on that date, unless hedgedby forward foreign exchange contracts, in which case the rates specified in such forward contracts are used.Gains or losses on foreign exchange are taken up in the income statement with the exception of translationdifferences on foreign currency borrowings that provide a hedge against net investment in a foreign entityin which case the exchange differences are taken directly to foreign exchange fluctuation reserve until thedisposal of the net investment, at which time they are recognised in the income statement.For consolidation purpose, the assets and liabilities of overseas subsidiary are translated into RinggitMalaysia at exchange rates closely approximating to those ruling at the balance sheet date. Incomestatement items are translated at average exchange rates for the financial year. All exchange differencesarising from translation are included in the foreign exchange fluctuation reserve.The closing rates of exchange used in translation are as follows:IOI Corporation BerhadAnnual Report 2003140RM1.00 : SGD0.46 (2002 - SGD0.46)RM1.00 : USD0.26 (2002 - USD0.26)RM1.00 : EUR0.23 (2002 - EUR0.26)RM1.00 : YEN33.33 (2002 - YEN33.33)RM1.00 : HKD2.04 (2002 - HKD2.04)RM1.00 : CAD0.36 (2002 - Nil)RM1.00 : EGP1.58 (2002 - Nil)