3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(continued)
Options over shares relating to non-controlling interests
The Group evaluates if it has present ownership in the shares subject to the option. If not, the Group applies FRS 27 and
recognises non-controlling interests upon acquisition.
When the option remains unexercised, the accounting at each reporting period is as follows:
1)
The Group determines the amount that would have been recognised for the non-controlling interests, including an update
to reflect its share of profits and losses (and other changes in equity) for the acquiree for the period as required by
FRS 27
2)
The Group derecognises the non-controlling interests as if was acquired at that date
3)
The Group recognises a financial liability in accordance with FRS 39
4)
The Group accounts for the difference between 2) and 3) as a change in the non-controlling interests as an equity
transaction.
Transaction eliminations on consolidation
Intra-group balances and transactions, and any unrealised income and expenses arising from intra-group transactions, are
eliminated in preparing the consolidated financial statements. Unrealised gains arising from transactions with the joint venture
is eliminated against the investment to the extent of the Group’s interest in the investee. Unrealised losses are eliminated in
the same way as unrealised gains, but only to the extent that there is no evidence of impairment.
Accounting for subsidiaries and joint venture by the Company
Investments in subsidiaries and joint venture are stated in the Company’s balance sheet at cost less accumulated impairment
losses. The cost of the investment includes transaction costs.
3.2 Foreign currencies
Foreign currency transactions
Transactions in foreign currencies are translated to the respective functional currencies of Group entities at exchange rates at
the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated to the respective
functional currencies of Group entities at rates of exchange closely approximated to those ruling at the balance sheet date.
The functional currencies of the Group entities comprise Singapore Dollars, Indonesian Rupiah, United States Dollars, Ringgit
Malaysia, Thai Baht and Philippine Peso. Translation differences are dealt with through the income statement.
Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated to the
functional currency at the exchange rate at the date that the fair value was determined. Non-monetary items in a foreign
currency that are measured in terms of historical cost are translated using the exchange rate at the date of the transaction.
Foreign currency differences arising on the retranslation are recognised in the income statement.
65
TELECHOICE INTERNATIONAL LIMITED
2015 ANNUAL REPORT
NOTES TO THE
FINANCIAL STATEMENTS
