73
A N N U A L R E P O R T 2 0 1 6
For the Financial Year Ended 31 March 2016
NOTES TO THE
FINANCIAL STATEMENTS
2.
Summary of significant accounting policies (cont¡¯d)
2.5
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 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 profit 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 reclassified from equity to profit or loss of the Group
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
end of the reporting period and their profit 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 profit or loss.
