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NOTES TO FINANCIAL STATEMENTS
(cont’d)
31 March 2016

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont’d)

2.1 Basis of preparation (cont’d)

(a) Basis of measurement (cont’d)

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date, regardless of whether that price is
directly observable or estimated using another valuation technique. In estimating the fair value of an
asset or a liability, the Group takes into account the characteristics of the asset or liability which market
participants would take into account when pricing the asset or liability at the measurement date. Fair value
for measurement and/or disclosure purposes in these consolidated financial statements is determined on
such a basis, except for leasing transactions that are within the scope of FRS 17 Leases, and measurements
that have some similarities to fair value but are not fair value, such as value in use in FRS 36 Impairment
of Assets.

In addition, for financial reporting purposes, fair value measurements are categorised into Level 1, 2 or 3
based on the degree to which the inputs to the fair value measurements are observable and the significance
of the inputs to the fair value measurement in its entirety, which are described as follows:

• Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities

• Level 2: inputs other than quoted prices included within Level 1 that are observable for the
asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices)

• Level 3: inputs for the asset or liability that are not based on observable market data
(unobservable inputs)

(b) Functional and presentation currency

The individual financial statements of each group entity are measured and presented in the currency of
the primary economic environment in which the entity operates (its functional currency). The consolidated
financial statements of the Group and the statement of financial position of the University Company
are presented in Singapore dollars, which is the functional currency of the University Company and the
presentation currency for the consolidated financial statements.

All financial information presented in Singapore dollars has been rounded to the nearest thousand, unless
otherwise stated.

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