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Notes to Financial Statements
December 31, 2014
2. Summary of Significant Accounting Policies (cont’d)
FOREIGN CURRENCY TRANSACTIONS AND TRANSLATION
The individual financial statements of each Group entity are measured and presented in the currency of the primary
economic environment in which the entity operates (its functional currency). The consolidated financial statements of
the Group and the financial statements of the Co-operative are presented in Singapore dollars, which is the functional
currency of the Co-operative, and the presentation currency for the consolidated financial statements.
In preparing the financial statements of the individual entities, transactions in currencies other than the entity’s functional
currency are recorded at the rates of exchange prevailing on the date of the transaction. At the end of each reporting
period, monetary items denominated in foreign currencies are retranslated at the rates prevailing on the end of the
reporting period. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at
the rates prevailing on the date when the fair value was determined. Non-monetary items that are measured in terms of
historical cost in a foreign currency are not retranslated.
Exchange differences arising on the settlement of monetary items, and on retranslation of monetary items are included in
profit or loss for the period. Exchange differences arising on the retranslation of non-monetary items carried at fair value
are included in the profit or loss for the period except for differences arising on the retranslation of non-monetary items
in respect of which gains and losses are recognised in other comprehensive income. For such non-monetary items, any
exchange component of that gain or loss is also recognised in other comprehensive income.
For the purpose of presenting consolidated financial statements, the assets and liabilities of the Group’s foreign
operations (including comparatives) are expressed in Singapore dollars using exchange rates prevailing at the end of
the reporting period. Income and expense items (including comparatives) are translated at the average exchange rates
for the period, unless exchange rates fluctuated significantly during that period, in which case the exchange rates at the
dates of the transactions are used. Exchange differences arising, if any, are recognised in other comprehensive income
and accumulated in a separate component of equity.
CASH AND CASH EQUIVALENTS
Cash and cash equivalents comprise cash on hand and fixed deposits that are readily convertible to a known amount of
cash and are subject to an insignificant risk of changes in value.
