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NOTES TO THE FINANCIAL STATEMENTS 31 AUGUST 2002 (CONTINUED)
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3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(f) Foreign currencies (continued)
MALAYSIAN RESOURCES CORPORATION BERHAD
Transactions in foreign currencies are converted into Ringgit Malaysia at the exchange
rates ruling at the transaction dates. Monetary assets and liabilities in foreign currencies
at the balance sheet date are converted into Ringgit Malaysia at the rates of exchange
ruling on that date. Exchange differences arising from the settlement of foreign currency
transactions and from the translation of foreign currency monetary assets and liabilities
are included in the income statements.
The principal closing rates used in translation of foreign currency amounts are as follows:
Foreign currency 31.8.2002 31.8.2001
RM RM
1 US Dollar 3.825 3.825
1 Swedish Kroner 0.417 0.371
100 South African Rand 40.61 45.51
1 Deutschemark Not applicable 1.790
1 EURO 3.340 Not applicable
(g) Other investments
Long term investments are stated at cost except where the Directors are of the opinion
that there is a permanent diminution in their values, in which case allowance is made for
the diminution in value. Permanent diminution in the value of an investment is
recognised as an expense in the financial year in which the diminution is identified.
On disposal of an investment, the difference between net disposal proceeds and its
carrying amount is charged or credited to the income statement.
(h) Marketable securities
Marketable securities are carried at the lower of cost and market value, determined on
an aggregate portfolio basis by category of investment. Cost is derived at on the
weighted average basis. Market value is calculated by reference to stock exchange
quoted selling prices at the close of business at the balance sheet date.
Increases/decreases in the carrying amount of marketable securities are credited/charged
to the income statement.
On disposal of an investment, the difference between net disposal proceeds and its
carrying amount is charged or credited to the income statement.
(i) Property, plant and equipment
Operational property, plant and equipment are stated at cost less accumulated
depreciation except for freehold land and construction-in-progress which are not
depreciated. Leasehold land is amortised on a straight line basis over the period of the
lease of 99 years.
Other operational property, plant and equipment are depreciated on a straight line basis
to write off the cost of each asset to their residual values over their estimated useful
lives at the following annual rates: