Singapore Airlines 2016 Annual Report Download - page 122

Notes to the Financial Statements
31 March 2016
2 Summary of Significant Accounting Policies (continued)
(f) Intangible assets (continued)
(v) Others
Purchased landing slots are measured initially at cost. Following initial recognition, landing slots are measured at cost less
accumulated impairment losses, if any. Landing slots based within the European Union are not amortised, as regulations provide
that these landing slots have an indefinite useful life, and are tested for impairment annually.
Licences were acquired in business combinations. These intangible assets are amortised on a straight-line basis over an estimated
useful life of 3 years.
(g) Foreign currencies
The Management has determined the currency of the primary economic environment in which the Company operates i.e., its functional
currency, to be SGD. Sales prices and major costs of providing goods and services including major operating expenses are primarily
influenced by fluctuations in SGD.
Foreign currency transactions are translated into SGD at exchange rates which approximate bank rates prevailing at the dates of those
transactions.
All foreign currency monetary assets and liabilities are translated into SGD using year-end exchange rates. Non-monetary assets and
liabilities that are measured in terms of historical cost in a foreign currency are translated using the exchange rates as at the dates of the
initial transactions. Non-monetary assets and liabilities measured at fair value in a foreign currency are translated using the exchange
rates at the date when the fair value was determined.
The foreign currency gain or loss on monetary assets and liabilities is the dierence between amortised cost in the functional currency
at the beginning of the year, adjusted for eective interest and payments during the year, and the amortised cost in foreign currency
re-translated at the exchange rate at the end of the year.
Gains and losses arising from translation of monetary assets and liabilities are taken to the profit and loss account.
For the purpose of the consolidated financial statements, the net assets of the foreign subsidiary, associated and joint venture companies
are translated into SGD at the exchange rates ruling at the end of the reporting period. The financial results of foreign subsidiary, associated
and joint venture companies are translated monthly into SGD at the prevailing exchange rates. The resulting gains or losses on exchange
are recognised initially in other comprehensive income and accumulated under foreign currency translation reserve.
Goodwill and fair value adjustments arising from the acquisition of foreign operations on or aer 1 April 2005 are treated as assets and
liabilities of the foreign operations and are recorded in the functional currency of the foreign operations, and translated into SGD at the
closing rate at the end of the reporting period. For acquisitions prior to 1 April 2005, the exchange rates at the date of acquisition were used.
Foreign currency dierences are recognised in other comprehensive income, and presented in the foreign currency translation reserve
in equity. However, if the foreign operation is a non-wholly-owned subsidiary company, then the relevant proportionate share of the
translation dierence is allocated to the non-controlling interests. When a foreign operation is disposed of such that control, significant
influence or joint control is lost, the cumulative amount in the foreign currency translation reserve related to that foreign operation is
reclassified to profit or loss as part of the gain or loss on disposal. When the Group disposes of only part of its interest in a subsidiary
company that includes a foreign operation while retaining control, the relevant proportion of the cumulative amount is reattributed to
non-controlling interests. When the Group disposes of only part of its investment in an associated or joint venture company that includes
a foreign operation while retaining significant influence or joint control, the relevant proportion of the cumulative amount is reclassified
to profit or loss.
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