Page 44 - Nanyang Technological University

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

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 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
profit or loss as part of the gain or loss on disposal.

2 . 4 Fu n d s
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 profit or loss

and other 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 profit or loss and other comprehensive income.

42 NTU ANNUAL REPORT 2016