Notes to the financial statements
Year ended 31 March 2016
3 Significant accounting policies (continued)
(a)
Basis of consolidation (continued)
Subsidiaries in the separate financial statements
Interest in subsidiaries and joint venture are stated in the Trust’s statement of financial position at cost less
accumulated impairment losses.
(b)
Foreign currency
Foreign currency transactions
Transactions in foreign currencies are translated to the respective functional currencies of the Group entities
at the exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign
currencies at the end of the reporting period are translated to the functional currency at the exchange rate at
that date. The foreign currency gain or loss on monetary items is the difference between amortised cost in the
functional currency at the beginning of the year, adjusted for effective interest and payments during the year, and
the amortised cost in foreign currency translated at the exchange rate at the end of the year.
Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are translated
to the functional currency at the exchange rate at the date on which the fair value was determined. Non-monetary
items in a foreign currency that are measured in terms of historical costs are translated using the exchange rate
at the date of the transaction.
Foreign currency differences arising on translation are recognised in the Statement of Total Return, except for
differences arising on the translation of monetary items that in substance form part of the Group’s net investment
in a foreign operation, or qualifying cash flow hedges, which are recognised in Unitholders’ funds.
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. However, if the operation is not a wholly-owned subsidiary, then the relevant proportionate
share of the translation difference is allocated to the non-controlling interests. 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.
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A-REIT ANNUAL REPORT
2015/2016
