(g) Foreign currencies (continued)
A ll foreign currency monetary assets and liabilities are translated into SGD using year-end exchange rates. Nonmonetary
assets and liabilities that are measured in terms of historical cost in a foreign currency are translated using
the exchange rates as at the dates of the initial transactions. Non-monetary assets and liabilities measured at fair value
in a foreign currency are translated using the exchange rates at the date when the fair value was determined.
G ains and losses arising from conversion of monetary assets and liabilities are taken to the profit and loss account.
For the purpose of the consolidated financial statements, the net assets of the foreign subsidiary, associated and joint
venture companies are translated into SGD at the exchange rates ruling at the end of the reporting period. The financial
results of foreign subsidiary, associated and joint venture companies are translated monthly into SGD at the prevailing
exchange rates. The resulting gains or losses on exchange are recognised initially in other comprehensive income and
accumulated under foreign currency translation reserve.
G oodwill and fair value adjustments arising from the acquisition of foreign operations on or after 1 April 2005 are
treated as assets and liabilities of the foreign operations and are recorded in the functional currency of the foreign
operations, and translated into SGD at the closing rate at the end of the reporting period.
O n disposal of a foreign operation, the cumulative amount of exchange differences deferred in other comprehensive
income relating to that foreign operation is recognised in the profit and loss account as a component of the gain or
loss on disposal.