73
73
2015/2016 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
for the financial year ended 31 March 2016
3. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(a) Basis of consolidation (continued)
Transactions eliminated on consolidation
Intra-group balances and transactions, and any unrealised income and expenses arising from intra-
group transactions, are eliminated in preparing the consolidated financial statements. Unrealised
gains arising from transactions with equity-accounted investees are eliminated against the investment
to the extent of the Group’s interest in the investee. Unrealised losses are eliminated in the same way
as unrealised gains, but only to the extent that there is no evidence of impairment.
Subsidiaries, associated company and joint venture in the separate financial
statements
Investments in subsidiaries, associated company and joint venture are stated in the Company’s
statement of financial position at cost less accumulated impairment losses.
(b) Foreign currency
Foreign currency transactions and balances
Transactions in foreign currencies are translated to the respective functional currencies of the Group
entities at exchange rates at the dates of the transactions.
Monetary assets and liabilities denominated in foreign currencies at the end of the reporting period are
retranslated to the functional currency at the exchange rate at that date.
Non-monetary assets and liabilities denominated in foreign currencies that are measured in terms
of historical cost are translated into the functional currency at the exchange rate at the date of the
transaction. Non-monetary assets and liabilities denominated in foreign currencies that are measured
at fair value are retranslated to the functional currency at the exchange rate at the date on which the
fair value was determined.
Foreign operations
The assets and liabilities of foreign operations, excluding goodwill and fair value adjustments arising
on acquisition of the foreign operations, are translated to US$ at exchange rates prevailing at the
end of the reporting period. Income and expenses of foreign operations are translated to US$ at the
exchange rates prevailing at the dates of the transactions. Goodwill and fair value adjustments arising
on the acquisition of a foreign operation on or after 1 January 2005 are treated as assets and liabilities
of the foreign operation and translated at the exchange rates at the end of the reporting period. For
acquisitions prior to 1 January 2005, the exchange rates at the date of acquisition were used.
