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NOTES TO THE
FINANCIAL STATEMENTS
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 cumulative amount is reattributed to
non-controlling interests. When the Group disposes of only part of its investment in an
associate or jointly controlled entity that includes a foreign operation while retaining
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.