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Events 2005 - ChartNexus

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Notes to the Financial Statements 31 December <strong>2005</strong><br />

5. SIGNIFICANT ACCOUNTING POLICIES (Continued)<br />

5.13 Foreign currency transactions and translating (Continued)<br />

(a) Transactions and balances in foreign currencies (Continued)<br />

All gains or losses arising from the settlement of foreign currency transactions and from the translation of foreign<br />

monetary assets and liabilities are taken up in the income statement.<br />

(b) Translation of foreign currency financial statements<br />

For consolidation purposes, the assets and liabilities of foreign entities are translated into Ringgit Malaysia at the rate<br />

ruling at the balance sheet date. Income statement items are translated at average rate for the period. The translation<br />

differences arising therefore are taken up and reflected in foreign exchange translation reserve.<br />

Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities<br />

of the Company and translated at the exchange rate ruling at the date of the transaction.<br />

(c) The principal closing rates used in translation of foreign currency amounts are:<br />

STAR PUBLICATIONS<br />

(MALAYSIA) BERHAD<br />

<strong>2005</strong> 2004<br />

RM RM<br />

1 Sterling Pound 6.514 7.217<br />

1 Euro 4.475 5.115<br />

1 US Dollar 3.781 3.800<br />

1 Swiss Franc 2.876 3.315<br />

1 Australian Dollar 2.767 2.987<br />

1 Singapore Dollar 2.271 2.240<br />

1 Swedish Krona 0.497 –<br />

5.14 Financial instruments<br />

5.14.1 Financial instruments recognised on the balance sheets<br />

(a) Ordinary shares<br />

Ordinary shares are recorded at the nominal value and proceeds in excess of the nominal value of shares issued, if<br />

any, are accounted for as share premium. Both ordinary shares and share premium are classified as equity. Cost<br />

incurred directly attributable to the issuance of the shares are accounted for as a deduction from share premium.<br />

Otherwise they are charged to the income statement.<br />

Dividends to shareholders are recognised in equity in the period in which they are declared.<br />

(b) Redeemable unsecured bonds<br />

The redeemable unsecured bonds are recognised in the financial statements based on nominal value of the bonds.<br />

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