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SINGAPORE SHIPPING CORPORATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
for the financial year ended 31 March 2016
3. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(b) Foreign currency (continued)
Foreign operations (continued)
Foreign currency differences arising on translation are recognised in other comprehensive income
and presented as currency translation reserve in equity. However, if the foreign operation is a
non-wholly-owned subsidiary, then the relevant proportionate share of the translation difference 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 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 that includes a foreign operation while
retaining control, the relevant proportion of the cumulative amount in the currency translation reserve
is reattributed to non-controlling interests. When the Group disposes of only part of its investment in
an associated company or joint venture, that includes a foreign operation, while retaining significant
influence or joint control, the relevant proportion of the cumulative amount in the currency translation
reserve is reclassified to profit or loss.
When the settlement of a monetary item receivable from or payable to a foreign operation is neither
planned nor likely in the foreseeable future, foreign exchange gains and losses arising from such a
monetary item that are considered to form part of a net investment in a foreign operation are recognised
in other comprehensive income, and are presented in the currency translation reserve in equity.
(c) Revenue
Revenue comprises charter hire and other shipping income. Provided it is probable that the economic
benefits will flow to the Group, and that the revenue can be measured reliably, revenue is recognised
in the profit or loss in the following manners:
• Charter hire income is recognised on a straight line basis over the lease term.
• Agency fees and terminal services, freight, clearance and transportation services, labour and
other warehouse operation charges are recognised when the services are rendered.
