66
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2014
2.
Significant accounting policies
(continued)
2.23 Currency translation
(a)
Functional and presentation currency
Items included in the financial statements of each entity in the Group are measured using
the currency of the primary economic environment in which the entity operates (“functional
currency”). The financial statements are presented in Singapore Dollar, which is the
functional currency of the Company.
(b)
Transactions and balances
Transactions in a currency other than the functional currency (“foreign currency”) are
translated into the functional currency using the exchange rates at the dates of the
transactions. Currency translation differences resulting from the settlement of such
transactions and from the translation of monetary assets and liabilities denominated in
foreign currencies at the closing rates at the balance sheet date are recognised in profit or
loss.
Foreign exchange gains and losses that relate to borrowings are presented in the statement
of comprehensive income within “finance expense”. All other foreign exchange gains and
losses impacting profit or loss are presented in the statement of comprehensive income
within “Other gains – net”.
Non-monetary items measured at fair values in foreign currencies are translated using the
exchange rates at the date when the fair values are determined.
(c)
Translation of Group entities’ financial statements
The results and financial position of all the Group entities (none of which has the currency of
a hyperinflationary economy) that have a functional currency different from the presentation
currency are translated into the presentation currency as follows:
(i)
Assets and liabilities are translated at the closing exchange rates at the reporting date;
(ii)
Income and expenses are translated at average exchange rates (unless the average
is not a reasonable approximation of the cumulative effect of the rates prevailing on
the transaction dates, in which case income and expenses are translated using the
exchange rates at the dates of the transactions); and
(iii)
All resulting currency translation differences are recognised in other comprehensive
income and accumulated in the currency translation reserve. These currency
translation differences are reclassified to profit or loss on disposal or partial disposal
of the entity giving rise to such reserve.
Goodwill and fair value adjustments arising on the acquisition of foreign operations are
treated as assets and liabilities of the foreign operations and translated at the closing rates at
the reporting date.
2.24 Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to
the Board of Directors whose members are responsible for allocating resources and assessing
performance of the operating segments.
