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Old Chang Kee Ltd. • Annual Report 2012
Notes to the Financial Statements
For the fnancial period from 1 January 2011 to 31 March 2012
2. Summary of signifcant accounting policies (cont’d)
2.3 Standards issued but not yet efective (cont’d)
Amendments to FRS 1 Presentation of Items of Other Comprehensive Income
Te Amendments to FRS 1 Presentation of Items of Other Comprehensive Income (OCI) is efective for fnancial periods
beginning on or afer 1 July 2012.
Te Amendments to FRS 1 changes the grouping of items presented in OCI. Items that could be reclassifed to proft or loss
at a future point in time would be presented separately from items which will never be reclassifed. As the Amendments only
afect the presentations of items that are already recognised in OCI, the Company does not expect any impact on its fnancial
position or performance upon adoption of this standard.
2.4 Foreign currency
Te Group’s consolidated fnancial 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 fnancial 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 the 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 determined.
Exchange diferences arising on the settlement of monetary items or on translating monetary items at the end of
the reporting period are recognised in proft or loss except for exchange diferences arising on monetary items that
form part of the Group’s net investment in foreign operations, which are recognised initially in other comprehensive
income and accumulated under foreign currency translation reserve in equity. Te foreign currency translation
reserve is reclassifed from equity to proft or loss of the Group on disposal of the foreign operation.
(b) Consolidated fnancial 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 proft or loss are translated at the exchange rates
prevailing at the date of the transactions. Te exchange diferences 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 proft or loss.
In the case of a partial disposal without loss of control of a subsidiary that includes a foreign operation, the
proportionate share of the cumulative amount of the exchange diferences are re-attributed to non-controlling interest
and are not recognised in proft or loss. For partial disposals of associate companies or jointly controlled entities that
are foreign operations, the proportionate share of the accumulated exchange diferences is reclassifed to proft or loss.
2.5 Subsidiaries
A subsidiary is an entity over which the Group has the power to govern the fnancial and operating policies so as to obtain
benefts from its activities.
In the Company’s separate fnancial statements, investments in subsidiary companies are accounted for at cost less
impairment losses.