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SABANA
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exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in f
the end of the reporting period are retranslated to the functional currency at the exchange rate at th
currency gain or loss on monetary items is the difference between amortised cost in the functio
beginning of the period, adjusted for effective proft expense and payments during the period, and
in foreign currency translated at the exchange rate at the end of the period.
Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair val
to the functional currency at the exchange rate at the date that the fair value was determined. Non-
foreign currency that are measured in terms of historical cost are translated using the exchange rat
transaction. Foreign currency differences arising on retranslation are recognised in the Statement o
(c)
Investment properties
Investment properties are properties held either to earn rental income or capital appreciation or bot
Investment properties are accounted for as non-current assets and are stated at initial cost on acquis
expenditure that is directly attributable to the acquisition of the investment properties, and at fair v
value is determined in accordance with the Trust Deed, which requires the investment properti
independent registered valuers in such manner and frequency required under the Property Funds
Code issued by the MAS.
Fair value changes are recognised in the Statement of Total Return. When an investment property
resulting gain or loss is recognised in the Statement of Total Return as the difference between net
and the carrying amount of the property.
Subsequent expenditure relating to investment properties that have already been recognised is ad
amount of the assets when it is probable that future economic benefts, in excess of originally as
performance of the existing asset, will fow to the Group. All other subsequent expenditure is recogn
in the period in which it is incurred.
Investment properties are not depreciated. The properties are subject to continuing maintenanc
revalued on the basis described above. For taxation purpose, the Trust may claim capital allowan
qualify as plant and machinery under the Income Tax Act.
(d)
Intangible assets
Intangible assets represent the unamortised income support receivable by the Group in accordanc
agreement entered into with the vendors of 9 Tai Seng Drive and 6 Woodlands Loop.
These intangible assets have fnite useful lives and are measured at cost less accumulated amortisatio
impairment loss.
These intangible assets are amortised in the Statement of Total Return on a systematic basis over th
lives of 3 years to 5 years. Intangible assets are tested for impairment as described in Note 3(f).
Sabana AR 2011 Financial V9.indd 80
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