N o t e s t o t h e f i n a n c i a l s t a t e m e n t s
Year ended 31 March 2015
3 Significant accounting policies (continued)
(b) Foreign currency (continued)
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 recognised in the foreign currency translation reserve (“translation reserve”) in
Unitholders’ funds. When a foreign operation is disposed of such that control, significant influence 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.
Subsequent expenditure on investment properties is added to the carrying amount of the asset when it is probable
that future economic benefits, in excess of originally assessed standard of performance of the existing asset, will
flow 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.
(d) Investment properties under development
Investment properties under development are properties constructed or developed for future use as investment
properties. Investment properties under development 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. Upon
completion of the development, the carrying amounts are reclassified to investment properties.
148 149
