150
FRASERS HOSPITALITY TRUST ANNUAL REPORT 2015
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL PERIOD FROM 20 JUNE 2014 (DATE OF CONSTITUTION) TO 30 SEPTEMBER 2015
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
2.5 Foreign currencies (cont’d)
(c)
Foreign currency translation
The results and financial positions of foreign operations are translated into Singapore dollars using the
following procedures:
(i)
Assets and liabilities are translated to Singapore dollars at exchange rates at the end of the reporting
period; and
(ii)
Income and expenses are translated to Singapore dollars at the average exchange rates for the
period, which approximates the exchange rates at the dates of the transactions.
All resulting exchange differences are recognised in other comprehensive income and accumulated in
the foreign currency translation reserve.
On the disposal of a foreign operation, the cumulative amount of exchange differences recognised in
other comprehensive income relating to the foreign operation is recognised in the Statements of Total
Return as a component of the gain or loss on disposal.
Goodwill and fair value adjustments arising on the acquisition of foreign operations are treated as assets
and liabilities of the foreign operations and translated at the closing rates at the date of the Statements
of Financial Position.
2.6 Investment properties
Investment properties are properties held either to earn rental income or for capital appreciation, or both, rather
than for use in the production or supply of goods or services, or for administrative purposes, or in the ordinary
course of business.
Investment properties are measured at cost on initial recognition. Cost includes expenditure that is directly
attributable to the acquisition of the investment properties.
Subsequent to initial recognition, investment properties are measured at fair value. Any gains or losses arising
from changes in fair values of the investment properties are recognised in the Statements of Total Return in the
period in which they arise.
Fair value is determined at each reporting date in accordance with the FH-REIT Trust Deed. In addition, the
investment properties are to be valued by independent professional valuers at least once a year, in accordance
with the CIS Code issued by MAS.
Subsequent expenditure relating to the investment properties that has already been recognised is added to the
carrying amount of the asset when it is probable that future economic benefits, in excess of originally assessed
standard of performance of the existing asset, will flow to the Stapled Group. All other subsequent expenditure
is recognised as an expense in the period in which it is incurred.
Investment properties are de-recognised when they have been disposed of or when the investment property
is permanently withdrawn from use and no future economic benefit is expected from its disposal. Any gains or
losses on the retirement or disposal of an investment property are recognised in the Statements of Total Return
in the year of retirement or disposal.
