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STAMFORD LAND CORPORATION LTD
Notes to the Financial Statements
2 Summary of Significant Accounting Policies (cont’d)
Translation of Financial Statements of Other Group Entities
Each entity in the Group determines the appropriate functional currency as it refects the primary
economic environment in which the entity operates. The functional currencies of the Group
entities are Singapore dollar, Australian dollar and New Zealand dollar. In translating the fnancial
statements of an investee for incorporation in the consolidated fnancial statements, the assets
and liabilities denominated in currencies other than the functional currency of the Company are
translated at year end rates of exchange and the income and expense items are translated at
average rates of exchange for the year. The components of shareholders’ equity are stated at
historical rates. The resulting translation adjustments are recognised in other comprehensive
income and are accumulated in a separate component of equity until the disposal of that investee.
On disposal, the cumulated translation adjustments is transferred to the income statement to
arrive at the gain or loss on disposal of the investee.
Borrowing Costs
All borrowing costs that are interest and other costs incurred in connection with the borrowing
of funds that are directly attributable to the acquisition, construction or production of a qualifying
asset that necessarily take a substantial period of time to get ready for their intended use or
sale are capitalised as part of the cost of that asset until substantially all the activities necessary
to prepare the qualifying asset for its intended use or sale are completed. Other borrowing costs
are recognised as an expense in the period in which they are incurred. The interest expense is
calculated using the effective interest rate method.
Property, Plant and Equipment
Property, plant and equipment is stated at cost less any accumulated depreciation and any
accumulated impairment loss.
The gain or loss arising from the derecognition of an item of property, plant and equipment is
determined as the difference between the net disposal proceeds, if any, and the carrying amount
of the item and is recognised in the income statement.