Page 42 - Nanyang Technological University

NOTES TO
FINANCIAL STATEMENTS (CONT’D)

31 March 2015

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont’d)

2.3 Foreign currencies

Foreign currency transactions

Transactions in foreign currencies are translated to the respective functional currencies of Group entities at
the exchange rate prevailing on the date of the transaction. At the end of each reporting period, monetary
items denominated in foreign currencies are retranslated to the functional currency at the rates prevailing
at the end of the reporting period. Non-monetary items carried at fair value that are denominated in foreign
currencies are retranslated to the functional currency at the rates prevailing on the date that the fair value
is determined. Non-monetary items that are measured in terms of historical cost in foreign currency are
not retranslated.

Foreign currency differences arising on retranslation are recognised in the profit or loss.

Foreign operations

The assets and liabilities of foreign operations are translated to the functional currency of the University
Company and the presentation currency for the consolidated financial statements at exchange rates
prevailing at the reporting date. The income and expenses of foreign operations are translated to Singapore
dollars at exchange rates ruling at the dates of the transactions.

Foreign currency differences are recognised in other comprehensive income and accumulated in a
separate component of equity under the header of foreign currency translation reserve. When a foreign
operation is disposed of, in part or in full, the relevant amount in the foreign exchange translation reserves
is transferred to the profit or loss as part of the gain or loss on disposal.

2.4 Funds

Assets and liabilities of all funds are pooled in the statements of financial position.

General and other restricted funds

Income and expenditure are generally accounted for under the “General Fund” in the statement of
comprehensive income. The use of these reserves is subject to the approval of the Board of Trustees.

The income and expenditure relating to funds that are set up for specific purposes are accounted for
under “Other Restricted Fund” in the statement of comprehensive income.

40 NTU ANNUAL REPORT 2015