BAKERTECHNOLOGYLIMITED
ANNUALREPORT2013
86
Notes to the
Financial Statements
for the financial year ended 31December 2013
2.
Summaryof significantaccounting policies (cont’d)
2.4
Foreign currency
The financial statements are presented in Singapore Dollars, which is also the Company’s functional currency. Each entity in
theGroup determines its own functional currency and items included in the financial statements of each entity aremeasured
using that functional currency.
(a)
Transactions andbalances
Transactions in foreigncurrenciesaremeasured in the respective functional currenciesof theCompanyand 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 closing rate of
exchange ruling at thebalance sheet date. Non-monetary items that aremeasured in terms of historical cost in a foreign
currencyare translatedusing theexchange rates as at thedatesof the initial transactions.Non-monetary itemsmeasured
at fair value in a foreign currency are translatedusing the exchange rates at thedatewhen the fair valuewasmeasured.
Exchange differences arising on the settlement of monetary items or on translating monetary items at the balance
sheet date are recognised in profit or loss except for exchange differences arising onmonetary items that form part of
the Group's net investment in foreign subsidiaries, 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 theGroup on disposal of the foreign operation.
(b)
Consolidatedfinancial statements
For consolidationpurposes, theassets and liabilitiesof foreignoperations are translated intoSGDat the rateof exchange
ruling at the balance sheet date and their profit or loss are translated at the weighted average exchange rates for the
year. The exchangedifferences arisingon the translation are takendirectly to a separate component of equity as foreign
currency translation reserve. On disposal of a foreign operation, the cumulative amount recognised in foreign currency
translation reserve relating to that particular foreignoperation is recognised in the profit or loss.
In the caseof apartial disposalwithout lossof control of a subsidiary that includes a foreignoperation, theproportionate
share of the cumulative amount of the exchange differences are re-attributed to non-controlling interest and are not
recognised inprofit or loss. For partial disposals of associates or jointly controlledentities that are foreignoperations, the
proportionate share of the accumulated exchange differences is reclassified to profit or loss.
2.5
Subsidiaries
A subsidiary is an entity over which the Group has the power to govern the financial and operating policies so as to obtain
benefits from its activities.
In the Company's separate financial statements, investments in subsidiaries are accounted for at cost less any impairment
losses.
