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Baker Technology LimitedAnnual Report 2014
2.
Summary of significant accountingpolicies (cont’d)
2.3
Basis of consolidation andbusiness combination (cont’d)
(b)
Business combinations andgoodwill (cont’d)
Where goodwill forms part of a cash-generating unit and part of the operation within that cash-
generatingunit isdisposedof, thegoodwill associatedwith theoperationdisposedof is included
in the carrying amount of the operation when determining the gain or loss on disposal of the
operation.Goodwill disposedof in this circumstance ismeasuredbasedon the relative fair values
of theoperations disposedof and theportionof the cash-generatingunit retained.
2.4
Foreign currency
The financial statements are presented in Singapore Dollars, which is also the Company’s functional
currency.Eachentity in theGroupdetermines itsown functional currencyand items included in thefinancial
statements of eachentity aremeasuredusing that functional currency.
(a)
Transactions andbalances
Transactions in foreign currencies aremeasured in the respective functional currencies of theCompany
and its subsidiariesandare recordedon initial recognition in the functional currenciesat exchange rates
approximatingthoserulingatthetransactiondates.Monetaryassetsand liabilitiesdenominated inforeign
currenciesare translatedat the rateofexchange rulingat theendof the reportingperiod.Non-monetary
items thataremeasured in termsofhistorical cost ina foreigncurrencyare translatedusing theexchange
rates as at thedates of the initial transactions. Non-monetary itemsmeasured at fair value in a foreign
currencyare translatedusing theexchange ratesat thedatewhen the fairvaluewasmeasured.
Exchange differences arising on the settlement of monetary items or on translating monetary
items at theendof the reportingperiod are recognised inprofit or loss.
(b)
Consolidatedfinancial statements
Forconsolidationpurposes,theassetsandliabilitiesofforeignoperationsaretranslatedintoSGDattherate
ofexchangerulingattheendof thereportingperiodandtheirprofitor lossaretranslatedattheexchange
rates prevailing at thedateof the transactions. The exchangedifferences arisingon the translation are
recognised inother comprehensive income.Ondisposal of a foreignoperation, thecomponentofother
comprehensive income relating to thatparticular foreignoperation is recognised inprofitor loss.
In the case of a partial disposal without loss of control of a subsidiary that includes a foreign
operation, the proportionate share of the cumulative amount of the exchange differences is re-
attributed tonon-controlling interest andarenot recognised inprofit or loss. For partial disposals
of associates or jointly controlled entities that are foreign operations, the proportionate share of
the accumulatedexchangedifferences is reclassified toprofit or loss.
NOTES TO THE
FINANCIAL STATEMENTS
For the financial year ended 31December 2014
