Foreign currency translation Functional and presentation currency

2.3 Foreign currency translation Functional and presentation currency

Items in the fi nancial statements of the Company and each of the Group’s subsidiaries are measured using the entities’ functional currency, being the currency of the primary economic environment in which the entity operates. The fi nancial statements are presented in Singapore dollars, which is the Company’s functional and the Group’s presentation currency. Foreign currency transactions Transactions in foreign currencies are measured at the exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated into Singapore dollars at the exchange rate ruling at the balance sheet date. Foreign exchange differences arising from this translation are recognised in the income statement. Non-monetary assets and liabilities measured at cost in a foreign currency are translated using the exchange rate at the date of the transaction. Non-monetary assets and liabilities measured at fair value in foreign currencies are translated into Singapore dollars at the exchange rate ruling at the date the fair value was determined. Unrealised foreign exchange differences arising from non- monetary fi nancial assets classifi ed as fair value through profi t or loss are recognised in the income statement. For non- monetary fi nancial assets classifi ed as available-for-sale, unrealised foreign exchange differences are recorded in other comprehensive income and accumulated in equity until the assets are disposed of or become impaired. Foreign operations The results and fi nancial position of the Group’s operations whose functional currency is not Singapore dollars are translated into Singapore dollars in the following manner: • Assets and liabilities are translated at the exchange rate ruling at the balance sheet date; • Income and expenses in the income statement are translated at an average exchange rate approximating the exchange rates at the dates of the transactions; and • All resulting exchange differences are recognised in other comprehensive income. Goodwill and fair value adjustments arising on the acquisition of a foreign operation on or after 1 January 2005 are treated as assets and liabilities of the foreign operation and translated at the closing rate. For acquisitions prior to 1 January 2005, the foreign exchange rates at the dates of acquisition were used. Consolidation adjustments On consolidation, foreign exchange differences arising from the translation of net investments in foreign entities, as well as any borrowings and instruments designated as foreign currency hedges of such investments, are recognised in other comprehensive income and accumulated under capital reserves in equity. When a foreign operation is disposed of, such currency translation differences are recognised in the income statement as part of the gain or loss on disposal.

2.4 Segment reporting