Page 141 - ar2012

Foreign operations
The assets and liabilities of foreign operations, including fair value adjustments arising on acquisition, are translated to Singapore
dollars at exchange rates prevailing at the reporting date. The income and expenses of foreign operations are translated to
Singapore dollars at exchange rates at the dates of the transactions. Fair value adjustments arising from the acquisition of a
foreign operation are treated as assets and liabilities of the foreign operation and translated at the closing rate.
Foreign currency differences are recognized in the foreign currency translation reserve (“translation reserve”) in Unitholders’
funds. When a foreign operation is disposed of such that control, signifcant infuence or joint control is lost, the cumulative
amount in the translation reserve related to that foreign operation is transferred to the Statement of Total Return as part of the
gain or loss on disposal. When the Group disposes of only part of its interest in a subsidiary that includes a foreign operation while
retaining control, the relevant proportion of the cumulative amount is reattributed to non-controlling interests.
When the settlement of a monetary item receivable from or payable to a foreign operation is neither planned nor likely in the
foreseeable future, foreign exchange gains and losses arising from such a monetary item are considered to form part of a net
investment in a foreign operation. These are recognised in the translation reserve in Unitholders’ funds.
(c) Investment properties
Investment properties are properties held either to earn rental income or for capital appreciation, or for both, but not for sale in the
ordinary course of business. Investment properties are initially stated at cost, including transaction costs and are measured at fair
value thereafter, with any change therein recognised in the Statement of Total Return. Fair values are determined in accordance
with the Trust Deed, which requires the investment properties to be valued by independent registered valuers in the following
events:
(i) in such manner and frequency required under the CIS Code issued by MAS; and
(ii) at least once in each period of 12 months following the acquisition of the investment properties.
Any increase or decrease on revaluation is credited or charged to the Statement of Total Return as change in fair value of the
investment properties.
When the Group holds a property for interest under an operating lease to earn rental income or for capital appreciation or both,
the interest is classifed and accounted for as investment properties on a property-by-property basis.
Subsequent expenditure relating to investment properties is added to the carrying amount of the asset when it is probable that
future economic benefts, in excess of originally assessed standard of performance of the existing asset, will fow to the Group.
All other subsequent expenditure is recognised as an expense in the period in which it is incurred.
When an investment property is disposed of, the resulting gain or loss recognised in the Statement of Total Return is the difference
between net disposal proceeds and the carrying amount of the property.
Investment properties are not depreciated. The properties are subject to continuing maintenance and are regularly revalued on
the basis described above. For income tax purposes, the Trust may claim capital allowances on assets that qualify as plant and
machinery under the Income Tax Act.
NOTES TO THE FINANCIAL STATEMENTS
141
A DECADE OF ENABLING BUSINESSES