Page 83 - SAR141018_Forterra AR 2013

FORTERRA
ANNUAL REPORT 2013
NOTES TO THE
FINANCIAL STATEMENTS
81
3 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(b) Foreign currency
(i) Foreign currency transactions
Transactions in foreign currencies are translated to the respective functional
currencies of Group entities at exchange rates at the dates of the transactions.
Monetary assets and liabilities denominated in foreign currencies at the end of the
reporting period are translated to the functional currency at the exchange rate at
that date. The foreign exchange differences are recognised in profit or loss.
Non-monetary assets and liabilities denominated in foreign currencies that are
measured at fair value are translated to the functional currency at the exchange
rate at the date that the fair value was determined. Non-monetary items in a foreign
currency that are measured at cost are translated using the exchange rate at the date
of the transaction. Foreign exchange differences arising on translation are recognised
in profit or loss, except for differences arising on the translation of qualifying cash
flow hedges, which are recognised in other comprehensive income.
(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 exchange rate at the end of the reporting period.
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.