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Notes to the
financial statements
For the financial year ended 31 December 2018
80
B A K E R T E C H N O L O G Y
L I M I T E D
2.
Summary of significant accounting policies (cont’d)
2.5
Transaction with non-controlling interests
Non-controlling interest represents the equity in subsidiaries not attributable, directly or indirectly,
to owners of the Company.
Changes in the Company’s ownership interest in a subsidiary that do not result in a loss of
control are accounted for as equity transactions. In such circumstances, the carrying amounts of
the controlling and non-controlling interests are adjusted to reflect the changes in their relative
interests in the subsidiary. Any difference between the amount by which the non-controlling interest
is adjusted and the fair value of the consideration paid or received is recognised directly in equity
and attributed to owners of the Company.
2.6
Foreign currency
The financial statements are presented in Singapore Dollars, which is also the Company’s functional
currency. Each entity in the Group determines its own functional currency and items included in the
financial statements of each entity are measured using that functional currency.
(a)
Transactions and balances
Transactions in foreign currencies are measured in the respective functional currencies of
the Company and its subsidiaries and are recorded on initial recognition in the functional
currencies at exchange rates approximating those ruling at the transaction dates. Monetary
assets and liabilities denominated in foreign currencies are translated at the rate of exchange
ruling at the end of the reporting period. Non-monetary items 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 items measured at fair value in a foreign currency
are translated using the exchange rates at the date when the fair value was measured.
Exchange differences arising on the settlement of monetary items or on translating monetary
items at the end of the reporting period are recognised in profit or loss.
(b)
Consolidated financial statements
For consolidation purposes, the assets and liabilities of foreign operations are translated
into SGD at the rate of exchange ruling at the end of the reporting period and their profit
or loss are translated at the exchange rates prevailing at the date of the transactions.
The exchange differences arising on the translation are recognised in other comprehensive
income. On disposal of a foreign operation, the component of other comprehensive income
relating to that particular foreign operation is recognised in profit or loss.