52
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2015
(In Singapore dollars)
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
2.4 Significant accounting estimates and judgments (cont’d)
(b)
Key sources of estimation uncertainty (cont’d)
Depreciation of property, plant and equipment
Property, plant and equipment are depreciated on a straight-line basis or a diminishing value basis over
their estimated useful lives. Management estimates the useful lives of plant and equipment to be within
1 to 20 years. Changes in the expected level of usage and technological developments could impact the
economic useful lives and the residual value of these assets, therefore, future depreciation charges could
be revised. The carrying amounts of the Group’s property, plant and equipment is disclosed in Note 12.
Impairment of non-financial assets other than goodwill and indefinite life intangibles
The Group assesses impairment of all assets at each reporting date by evaluating conditions specific to the
Group and to the particular asset that may lead to impairment. These include product and manufacturing
performance, technology, economic and political environments and future product expectations. If an
impairment trigger exists, the recoverable amount of the asset is determined.
Impairment of loans and receivables
The Group assesses at the end of each reporting period whether there is any objective evidence that a
financial asset is impaired. To determine whether there is objective evidence of impairment, the Group
considers factors such as the probability of insolvency or significant financial difficulties of the debtor and
default or significant delay in payments.
Where there is objective evidence of impairment, the amount and timing of future cash flows are estimated
based on historical loss experience for assets with similar credit risk characteristics. The carrying amount
of the Group’s loans and receivables at the end of the reporting period is disclosed in Note 33.
2.5 Foreign currency
The 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 the 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.
