BUILDING LANDMARKS, CHARTING GROWTH
199
Annual Report 2015
NOTES TO THE FINANCIAL STATEMENTS
3 SIGNIFICANT ACCOUNTING POLICIES
(continued)
3.2 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 prevailing at the end of the reporting date. 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 from the acquisition of a foreign operation are treated as
assets and liabilities of the foreign operation and translated at the exchange rates at the date of acquisition.
Foreign currency differences are recognised in OCI, and presented in the foreign currency translation reserve in
equity. However, if the foreign operation is a non-wholly-owned subsidiary, then the relevant proportionate share of
the translation difference is allocated to the NCI. 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 NCI. When the Group disposes of only part of its investment in an associate or
joint venture 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 to occur in the foreseeable future, foreign exchange gains and losses arising from such a monetary item that
are considered to form part of a net investment in a foreign operation are recognised in OCI, and are presented in
the translation reserve in equity.
3.3 Financial instruments
(i)
Non-derivative financial assets
The Group initially recognises loans and receivables on the date that they are originated. All other financial assets
(including assets designated at fair value through profit or loss) are recognised initially on the trade date, which is the
date that the Group becomes a party to the contractual provisions of the instrument.
The Group derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or it
transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially
all the risks and rewards of ownership of the financial asset are transferred, or if neither transfers or retains
substantially all of the risks and rewards of ownership and does not retain control over the transferred asset.
Any interest in transferred financial assets that is created or retained by the Group is recognised as a separate asset
or liability.
Financial assets and liabilities are offset and the net amount presented in the statement of financial position when,
and only when, the Group has a legal right to offset the amounts and intends either to settle on a net basis or to
realise the asset and settle the liability simultaneously.
The Group classifies non-derivative financial assets into the following categories: loans and receivables and
available-for-sale financial assets.
