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CapitaLand Mall Trust
Annual Report 2015
3 Significant accounting policies
(continued)
3.4 Foreign currency transactions
Transactions in foreign currencies are translated to the respective functional currencies of the Group at
the exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign
currencies at the end of the reporting date are retranslated to the functional currency at the exchange rate at
that date. The foreign currency gain or loss on monetary items is the difference between amortised cost in
the functional currency at the beginning of the year, adjusted for payments during the year, and the amortised
cost in foreign currency translated at the exchange rate at the end of the year.
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 currency differences arising on retranslation are recognised in Statement of Total Return, except for
the following differences which are recognised in Unitholders’ funds, arising on the retranslation of:
s AVAILABLE FOR SALE EQUITY INSTRUMENTS EXCEPT ON IMPAIRMENT IN WHICH CASE FOREIGN CURRENCY DIFFERENCES
that have been recognised in Unitholders’ funds are reclassified to Statement of Total Return);
s A lNANCIAL LIABILITY DESIGNATED AS A HEDGE OF THE NET INVESTMENT IN A FOREIGN OPERATION TO THE EXTENT THAT
the hedge is effective; or
s QUALIFYING CASH mOW HEDGES TO THE EXTENT THE HEDGE IS EFFECTIVE
3.5 Financial instruments
Non-derivative financial assets
The Group initially recognises loans and receivables on the date that they are originated. All other financial
assets (including assets designated at fair value through profit or loss) are recognised initially on the trade
date at which the Group becomes a party to the contractual provisions of the instrument.
The Group derecognises a financial asset when the contractual rights to the cash flows from the asset expire,
or it transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which
substantially all the risks and rewards of ownership of the financial asset are transferred. Any interest in
transferred financial assets that is created or retained by the Group is recognised as a separate asset or liability.
Financial assets and liabilities are offset and the net amount presented in the statement of financial position
when, and only when, the Group has a legal right to offset the amounts and intends either to settle on a net
basis or to realise the asset and settle the liability simultaneously.
The Group has the following non-derivative financial assets: loans and receivables.
Loans and receivables
Loans and receivables are financial assets with fixed or determinable payments that are not quoted in an
active market. Such assets are recognised initially at fair value plus any directly attributable transaction costs.
Subsequent to initial recognition, loans and receivables are measured at amortised cost using the effective
interest method, less any impairment losses.
Loans and receivables comprise trade and other receivables, loans to subsidiaries, loans to joint ventures
and cash and cash equivalents.
Cash and cash equivalents comprise cash balances and bank deposits.
Notes to the Financial Statements
Year ended 31 December 2015
