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3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(b) Foreign currency (Continued)
(ii) Foreign operations
The assets and liabilities of foreign operations, excluding goodwill and fair value adjustments arising on
acquisition, are translated to Singapore dollars at exchange rates at the end of the reporting period.
The income and expenses of foreign operations are translated to Singapore dollars at exchange rates at
the dates of the transactions. Goodwill and fair value adjustments arising on the acquisition of a foreign
operation are treated as assets and liabilities of the foreign operation and translated at the closing
rate.
Foreign currency differences are recognised in other comprehensive income, and presented in the foreign
currency translation reserve in equity. However, if the operation is a non-wholly-owned subsidiary, then
the relevant proportionate share of the translation difference is allocated to the non-controlling interests.
When a foreign operation is disposed of such that control, significant influence or joint control is lost, the
cumulative amount in the translation reserve related to that foreign operation is reclassified to profit or loss
as part of the gain or loss on disposal. When the Group disposes of only part of its interest in a subsidiary
that includes a foreign operation while retaining control, the relevant proportion of the significant influence
or joint control, the relevant proportion of the cumulative amount is reclassified to profit or loss.
When the settlement of a monetary item receivable from or payable to a foreign operation is neither
planned nor likely in the foreseeable future, foreign exchange gains and losses arising from such
a monetary item are considered to form part of a net investment in a foreign operation. These are
recognised in other comprehensive income, and are presented in the translation reserve in equity.
(c) Investment properties
Investment properties are properties held either to earn rental income or for capital appreciation or for both, or
are being constructed or developed for future use as investment property. Investment properties are stated at
initial cost on acquisition, and at fair value thereafter, with any change therein recognised in profit or loss.
Cost includes expenditure that is directly attributable to the acquisition of the investment property. The cost of
self-constructed investment property includes the cost of materials and direct labour, any other costs directly
attributable to bringing the investment property to a working condition for their intended use and capitalised
borrowing costs.
Valuations are determined in accordance with the Trust Deed, which requires the investment properties to be
valued by independent registered valuers at least once a year.
SAR1112034_TCT_AR_().indb 71 3/23/2012