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NOTES TO FINANCIAL STATEMENTS
For the fnancial year ended 31 March 2014
2. Summary of significant accounting policies (cont’d)
2.3 Standards issued but not yet effective (cont’d)
FRS 112 Disclosure of Interests in Other Entities
FRS 112 is effective for fnancial periods beginning on or after 1 January 2014.
FRS 112 is a new and comprehensive standard on disclosure requirements for all forms of interests in other entities, including joint
arrangements, associates, special purpose vehicles and other off balance sheet vehicles. FRS 112 requires an entity to disclose information
that helps users of its fnancial statements to evaluate the nature and risks associated with its interests in other entities and the effects
of those interests on its fnancial statements. The Group is currently determining the impact of the disclosure requirements. As this is a
disclosure standard, it will have no impact to the fnancial position and fnancial performance of the Group when implemented in 2015.
2.4 Foreign currency
The 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 measured.
Exchange differences 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 differences 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. The foreign currency translation reserve is reclassifed from equity to proft or loss of the
Group on disposal of the foreign operation.
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Annual Report 2014 •