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NOTES TO FINANCIAL STATEMENTS
For the fnancial year ended 31 March 2014
2. Summary of significant accounting policies (cont’d)
2.4 Foreign currency (cont’d)
(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 proft or loss are translated at the exchange rates prevailing at the date of the
transactions. 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 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 differences 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 differences 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.
2.6 Basis of consolidation and business combination
(a) Basis of consolidation
Basis of consolidation from 1 January 2010
The consolidated fnancial statements comprise the fnancial statements of the Company and its subsidiaries as at the end of the
reporting period. The fnancial statements of the subsidiaries used in the preparation of the consolidated fnancial statements are
prepared for the same reporting period as the Company. Consistent accounting policies are applied to like transactions and events
in similar circumstances.
All intra-group balances, income and expenses and unrealised gains and losses resulting from intra-group transactions and
dividends are eliminated in full.
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Annual Report 2014 •