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ON A RAPID RISE

NOTES TO
FINANCIAL STATEMENTS (CONT’D)

31 March 2015

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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