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2. Significant Accounting Policies (cont’d.)
(s) Foreign currency transactions (cont’d.)
(ii) Foreign currency transactions
Transactions in foreign currencies are initially converted into RM at exchange rates ruling at the date of transaction.
At each reporting date, foreign currency monetary items are translated into RM at exchange rates ruling at that date.
Non-monetary items initially denominated in foreign currencies, which are carried at historical cost are translated
using the historical rate as of the date of acquisition.
Exchange differences arising on the settlement of monetary items or on translating monetary items at the reporting
date are recognised in profit or loss. Exchange differences arising on the translation of non-monetary items carried
at fair value are included in profit or loss for the period except for the differences arising on the translation of non-
monetary items in respect of which gains and losses are recognised directly in equity. Exchange differences arising
from such non-monetary items are also recognised directly in equity.
(t) Fair value measurement
The Group measures financial instruments, such as, derivatives at fair value at each reporting date. Also, fair values of
financial instruments measured at amortised cost are disclosed in Note 28(f).
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. The fair value measurement is based on the presumption that the
transaction to sell the asset or transfer the liability takes place either:
(i) In the principal market for the asset or liability; or
(ii) In the absence of a principal market, in the most advantageous market for the asset or liability.
The principal or the most advantageous market must be accessible to by the Group.
The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing
the asset or liability, assuming that market participants act in their economic best interest.
A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic
benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset
in its highest and best use.
The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available
to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the
fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement
as a whole:
NOTES TO THE FINANCIAL STATEMENTS
31 December 2013
DiGi.COM BERHAD (425190-X)
ANNUAL REPORT 2013
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