107 / 152
FINANCIALS
105
3.2 Foreign currency
Foreign currency transactions
Transactions in foreign currencies are translated to the respective functional currencies of Group entities at the exchange
rates at the dates of the transaction. Monetary assets and liabilities denominated in foreign currencies at the end of the
reporting period are retranslated to the functional currency at the exchange rate at that date. Non-monetary items in
a foreign currency that are measured in terms of historical cost are translated using the exchange rate at the date of
the transactions. 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. Foreign currency differences
arising on retranslation are recognised in the statement of total return.
Foreign operations
The assets and liabilities of foreign operations are translated to Singapore dollars at exchange rates at the end of the
reporting period. The income and expenses of foreign operations are translated to Singapore dollars at exchange rates
at the dates of the transactions. Goodwill and fair value adjustments arising on 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 foreign currency translation reserve. When a foreign operation is disposed
of, in part or in full, the relevant amount is transferred to the statement of total return.
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 Trust’s statement of total return, and are reclassified
to the foreign currency translation reserve in the consolidated financial statements.
3.3 Plant and equipment
Recognition and measurement
Plant and equipment are stated at cost less accumulated depreciation and impairment losses. Cost includes expenditure
that is directly attributable to the acquisition of the asset. The cost of self-constructed assets includes the cost of
materials and direct labour, any other costs directly attributable to bringing the asset to a working condition for its
intended use, and when the Group has an obligation to remove the asset or restore the site, an estimate of the cost of
dismantling and removing the items and restoring the site on which they are located.
When parts of an item of plant and equipment have different useful lives, they are accounted for as separate items (major
components) of plant and equipment.
The gain or loss on disposal of an item of plant and equipment is determined by comparing the proceeds from disposal
with the carrying amount of plant and equipment, and is recognised in the statement of total return.
Subsequent costs
The cost of replacing part of an item of plant and equipment is recognised in the carrying amount of the item if it is
probable that the future economic benefits embodied within the part will flow to the Group and its cost can be measured
reliably. The cost of the day-to-day servicing of plant and equipment are recognised in the statement of total return
as incurred.
Depreciation
Depreciation of plant and equipment is recognised in the statement of total return on a straight-line basis over their
estimated useful lives of 2 to 5 years.
Depreciation methods, useful lives and residual values are reviewed, and adjusted as appropriate, at each reporting date.