55
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2014
2.
Summary of significant accounting policies (cont’d)
2.5
Transactions with non-controlling interests
Non-controlling interest represents the equity in subsidiaries not attributable, directly or indirectly, to owners of the Company.
Changes in the Company’s ownership interest in a subsidiary that do not result in a loss of control are accounted for as equity
transactions. In such circumstances, the carrying amounts of the controlling and non-controlling interests are adjusted to
reflect the changes in their relative interests in the subsidiary. Any difference between the amount by which the non-controlling
interest is adjusted and the fair value of the consideration paid or received is recognised directly in equity and attributed to
owners of the Company.
2.6
Foreign currency
The financial statements are presented in Singapore Dollars, which is also the Company’s functional currency. Each entity in
the Group determines its own functional currency and items included in the financial statements of each entity are measured
using that functional currency.
(a)
Transactions and balances
Transactions in foreign currencies are measured in the respective functional currencies of the Company and its
subsidiaries and are recorded on initial recognition in the functional currencies at exchange rates approximating those
ruling at the transaction dates. Monetary assets and liabilities denominated in foreign currencies are translated at the
rate of exchange ruling at end of the reporting period. Non-monetary items that are measured in terms of historical cost
in a foreign currency are translated using the exchange rates as at the dates of the initial transactions. Non-monetary
items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair
value was measured.
Exchange differences arising on the settlement of monetary items or on translating monetary items at end of the
reporting period are recognised in profit or loss.
Exchange differences arising on monetary items that form part of the Group’s net investment in foreign operations are
recognised initially in other comprehensive income and accumulated under foreign currency translation reserve in equity.
The foreign currency translation reserve is reclassified from equity to profit or loss on disposal of the foreign operation.
(b)
Consolidated financial statements
For consolidation purpose, the assets and liabilities of foreign operations are translated into SGD at the rate of exchange
ruling at the end of the reporting period and their profit or loss are translated at the weighted average exchange
rates for the year. The exchange differences arising on the translation are recognised in other comprehensive income.
On disposal of a foreign operation, the component of other comprehensive income relating to that particular foreign
operation is recognised in profit or loss.
2.7
Property, plant and equipment
All items of property, plant and equipment are initially recorded at cost. Subsequent to recognition, property, plant and
equipment other than freehold land and buildings are measured at cost less accumulated depreciation and any accumulated
impairment losses.
Any revaluation surplus is recognised in other comprehensive income and accumulated in equity under the asset revaluation
reserve, except to the extent that it reverses a revaluation decrease of the same asset previously recognised in profit or loss, in
which case the increase is recognised in profit or loss. A revaluation deficit is recognised in profit or loss, except to the extent
that it offsets an existing surplus on the same asset carried in the asset revaluation reserve.
