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CDL
HOSPITALITY TRUSTS
3 SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
3.1 Consolidation (cont'd)
Subsidiaries
Subsidiaries are entities controlled by the HBT Group and the H-REIT Group. The Group controls an entity
when it is exposed to or has rights to, variable returns from its involvement with the entity and has the ability to
affect those returns through its power over the entity. The financial statements of subsidiaries are included in
the consolidated financial statements from the date that control commences until the date that control ceases.
The accountingpolicies of subsidiaries havebeen changedwhen necessary to align themwith thepolicies of theGroup.
Transactions eliminated on consolidation
Intra-groupbalances and transactions, andanyunrealised incomeor expenses arising from intra-group transactions,
are eliminated in preparing the consolidated financial statements of the HBT Group, the H-REIT Group and the
Stapled Group.
3.2 Foreign currencies
Foreign currency transactions
Transactions in foreign currencies are translated to the respective functional currencies of the entities
in the HBT Group, the H-REIT Group and the Stapled Group at the exchange rate at the date of the
transaction. Monetary assets and liabilities denominated in foreign currencies at the reporting date
are retranslated to the functional currency at the exchange rate at the reporting 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 effective interest and 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.
Non-monetary items in a foreign currency that are measured in terms of historical cost are translated using
the exchange rate at the date of the transaction. Foreign currency differences arising on retranslation are
recognised in the statement of total return, except for differences arising on the retranslation of a financial
liability designated as a hedge of the H-REIT Group’s and the Stapled Group’s net investment in a foreign
operation that is effective (see below), which are recognised in unitholders’ funds directly.
Foreign operations
The assets and liabilities of foreign operations are translated to Singapore dollars at exchange rates prevailing
at the reporting date. The income and expenses of foreign operations are translated to Singapore dollars at
exchange rates prevailing at the dates of the transactions.
Foreign currency differences are recognised directly in the foreign currency translation reserve in unitholders’
funds. When a foreign operation is disposed of such that control, significant influence or joint control is
lost, the cumulative amount in the foreign currency translation reserve related to that foreign operation is
reclassified to the statement of total return as part of the gain or loss on disposal. When only part of the
interest in a subsidiary that includes a foreign operation is disposed of while retaining control, the relevant
proportion of the cumulative amount is reattributed to non-controlling interests.
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
are considered to form part of a net investment in a foreign operation. These are recognised directly in the
foreign currency translation reserve in unitholders’ funds.
NOTES TO THE FINANCIAL STATEMENTS
