NOTICE OF ANNUAL GENERAL MEETING
statisTICS OF SHAREHOLDINGs
FINANCIAL CONteNts
CORPORATE GOVERNANCE REPORT
63
Navigating Challenges • EMBRACING DIVERSITY | ANNUAL REPORT 2015
Notes to the financial statements
3 Significant accounting policies (Cont’d)
3.2 Foreign currency (Cont’d)
(ii)
Foreign operations
The assets and liabilities of foreign operations are translated to Singapore dollars at exchange rates 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.
Foreign currency differences are recognised in other comprehensive income, and presented in the
foreign currency translation reserve in equity. When a foreign operation is disposed of such that control
is lost, the cumulative amount in the translation reserve related to that foreign operation is reclassified to
profit or loss as part of the gain or loss on disposal. When the Group disposes of only part of its interests
in a subsidiary that includes a foreign operation while retaining control, the relevant proportion of the
cumulative amount is reattributed to non-controlling interests.
3.3 Property, plant and equipment
(i)
Recognition and measurement
Items of property, plant and equipment are measured at cost less accumulated depreciation and
accumulated 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 bring the asset to a working condition for its intended use;
•
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; and
•
capitalised borrowing costs.
Purchased software that is integral to the functionality of the related equipment is capitalised as part of
that equipment.
When parts of an item of property, plant and equipment have different useful lives, they are accounted
for as separate items (major components) of property, plant and equipment.
The gain or loss on disposal of an item of property, plant and equipment (calculated as the difference
between the net proceeds from disposal and the carrying amount of the item) is recognised in profit or
loss.
(ii)
Subsequent costs
The cost of replacing a component of an item of property, plant and equipment is recognised in the
carrying amount of the item if it is probable that the future economic benefits embodied within the
component will flow to the Group and its cost can be measured reliably. The carrying amount of the
replaced component is derecognised. The costs of the day-to-day servicing of property, plant and
equipment are recognised in profit or loss as incurred.
