AGS Transact Technologies Limited

Annexure V - Basis of preparation and Significant Accounting Policies

Notes to the Revised Restated Consolidated Financial Information

Revised Restated Consolidated Statement of Profit and Loss. All other claims and provisions are accounted on the
merits of each case.

Dividend income is recognised in Revised Restated Consolidated Statement of Profit and Loss on the date on which
the Group’s right to receive payment is established, it is probable that the economic benefits associated with the
dividend will flow to the Group, and the amount of dividend can be measured reliably.

For all financial instruments measured at amortised cost, interest income or expense is recorded using the effective
interest rate (EIR), which is the rate that discounts the estimated future cash payments or receipts through the
expected life of the financial instruments or a shorter period, where appropriate, to the net carrying amount of the
financial asset or liability. Interest income is included in Other income in the Revised Restated Consolidated
Statement of Profit and Loss.

Finance lease interest expense is recognised upon commencement of the finance lease agreement using constant
periodic rate of return over the period of the agreement.

Foreign currency transactions
(i) Initial recognition

Foreign currency transactions are recorded in the functional currency, by applying to the foreign currency amount
the exchange rate between the functional currency and the foreign currency at the date of the transaction.

(ii) Subsequent measurement

Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the
exchange rate at the reporting date. Non-monetary assets and liabilities that are measured at fair value in a foreign
currency are translated into the functional currency at the exchange rate when the fair value was determined. Non-
monetary assets and liabilities that are measured based on historical cost in a foreign currency are translated at the
exchange rate at the date of the transaction. Exchange differences are recognised in Revised Restated Consolidated
Statement of Profit and Loss in the period in which they arise.

(iii) Foreign operations

In case of foreign operations whose functional currency is different from the parent’s functional currency, the assets
and liabilities of such foreign operations, including goodwill and fair value adjustments arising upon acquisition, are
translated to the reporting currency at exchange rates at the reporting date. The income and expenses of such foreign
Operations are translated to the reporting currency at the average exchange rates prevailing during the period.
Resulting foreign currency differences are recognised in other comprehensive income / (loss) and presented within
equity as part of Foreign Currency Translation Reserve (FCTR). When a foreign operation is disposed of, in part or
in full, the relevant amount in the FCTR is transferred to the Revised Restated Consolidated Statement of Profit and
Loss.

(iv) Fair value gain / (loss) of derivative contracts

Foreign exchange difference on foreign currency borrowings, settlement gain/ (loss) and fair value gain/ (loss) on
derivative contracts relating to borrowings are accounted and disclosed under Finance cost.

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