The Three Accounting Concept that applied by Carlsberg Company

Ringgit Malaysia (RM) as Money Measurement

Ringgit Malaysia (RM) is used as the basic measuring unit for financial reporting in
Carlsberg Brewery. Ringgit Malaysia is represented as the Company’s functional currency
because the company was establish in Malaysia and require to utilize Malaysia currency as a
basic measurement. Transactions in foreign currencies are translated to the respective
functional currencies of Group entities at exchange rates at the dates of the transactions.

Conservation Principle

Carlsberg Brewery carry out cautious practice toward the carrying amounts of assets and
inventories are reviewed at each reporting date to determine whether there is any indication
of impairment or asset being overstated and liability being understated. For the purpose of
impairment testing, by grouping assets together into the smallest group of assets that
generates cash inflows from continuing use that are largely independent of the cash inflows of
other assets or groups of assets.

Good and Service that Provided by Carlsberg Brewery are all recorded as Historical Cost

All the transaction of a business entity in Carlsberg is recorded at the original price to the
enterprise. The good that sold to the customer must follow according to the actual price and
the current market irrelevant. Example, The leasehold land of the Carlsberg Brewery was
revalued in 1981 by independent professional qualified values using an open market value
method. These assets have continued to be stated on the basis of their 1981 valuations,