Cordlife Group Limited
Annual Report 2016
63
Notes to
The Financial Statements
for the financial year ended 30 June 2016
2.
Summary of significant accounting policies (cont’d)
2.5
Transactions with non-controlling interests
Non-controlling interest represents the equity in subsidiaries not attributable, directly or indirectly, to owners of
the Company, and is presented separately in the consolidated statement of comprehensive income and within
equity in the statements of financial position, separately from equity attributable to owners of the Company.
Changes in the Company’s ownership interest in a subsidiary that do not result in a loss of control are
accounted for as equity transactions. In such circumstances, the carrying amounts of the controlling and
non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiary. Any
difference between the amount by which the non-controlling interest is adjusted and the fair value of the
consideration paid or received is recognised directly in equity and attributable to owners of the Company.
2.6
Foreign currency
The Group’s consolidated financial statements are presented in Singapore Dollars, which is also the Company’s
functional currency. Each entity in the Group determines its own functional currency and items included in the
financial statements of each entity are measured using that functional currency.
(a)
Transactions and balances
Transactions in foreign currencies are measured in the respective functional currencies of the Company
and its subsidiaries and are recorded on initial recognition in the functional currencies at exchange
rates approximating those 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
equity. The foreign currency translation reserve is reclassified from equity to profit or loss of the Group
on disposal of the foreign operation.
(b)
Consolidated financial statements
For consolidation purpose, the assets and liabilities of foreign operations are translated into SGD at
the rate of exchange ruling at the end of the reporting period and their statement of comprehensive
income are translated at the exchange rates prevailing at the date of the transactions. The exchange
differences arising on the translation are recognised in other comprehensive income. On disposal of
a foreign operation, the component of other comprehensive income relating to that particular foreign
operation is recognised in profit or loss.
2.7
Property, plant and equipment
All items of property, plant and equipment are initially recorded at cost. Subsequent to recognition, property,
plant and equipment are measured at cost less accumulated depreciation and any accumulated impairment
losses. Such cost includes the cost of replacing part of the property, plant and equipment and borrowing costs
that are directly attributable to the acquisition, construction or production of a qualifying property, plant and
equipment. The accounting policy for borrowing costs is set out in Note 2.19. The cost of an item of property,
plant and equipment is recognised as an asset if, and only if, it is probable that future economic benefits
associated with the item will flow to the Group and the cost of the item can be measured reliably.
