ASCENDAS india trust ANNUAL REPORT 2014/15
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S
For the financial year ended 31 March 2015
2.
Significant accounting policies (continued)
2.6 Currency Translation
(a)
Functional and presentation currency
Items included in the financial statements of each entity in the Group are measured using the currency of the
primary economic environment in which the entity operates (“functional currency”). The functional currency of the
Trust is Indian Rupee (“INR”). The presentation currency is the SGD as the financial statements are meant primarily
for users in Singapore.
(b)
Transactions and balances
Transactions in a currency other than the functional currency (“foreign currency”) are translated into the functional
currency using the exchange rates ruling at the transaction dates. Monetary assets and liabilities denominated in
foreign currencies are translated at the rate of exchange ruling at the end of the reporting period. Non-monetary
items 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 items measured at fair value in a foreign currency are translated
using the exchange rates at the date when the fair value was measured.
Exchange differences arising on the settlement of monetary items or on translating monetary items at the end of the
reporting period are recognised in profit or loss except for exchange differences arising on monetary items that form
part of the Group’s net investment in foreign operations, which are recognised initially in other comprehensive income
and accumulated under foreign currency translation reserve in unitholders’ funds. The foreign currency translation
reserve is reclassified from unitholders’ funds to profit or loss of the Group on disposal of the foreign operation.
(c)
Translation of Group entities’ financial statements
The results and financial position of all the Group entities (none of which has a currency of a hyperinflationary
economy) that have a functional currency different from the presentation currency are translated into the presentation
currency as follows:
(i)
Assets and liabilities are translated at the closing exchange rates at the reporting date; and
(ii)
Income and expenses are translated at average exchange rates (unless the average is not a reasonable
approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income
and expenses are translated using the exchange rates at the dates of the transactions).
