Page 9 University of Technology, Jamaica Notes to the Financial Statements 31 March 2020 (expressed in Jamaican dollars unless otherwise indicated) 2. Summary of Significant Accounting Policies (Continued) (c) Foreign currency translation (i) Functional and presentation currency Items included in the financial statements are measured using the currency of the primary economic environment in which the University operates (“the functional currency”). The financial statements are presented in Jamaican dollars, which is the University’s functional currency. (ii) Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the statement of comprehensive income. (d) Property, plant and equipment Property, plant and equipment are stated at historical cost less accumulated depreciation and impairment losses. Land is not depreciated as it is deemed to have an indefinite life. For all other property, plant and equipment, depreciation is calculated on the straight-line basis to write off assets to their residual values over their estimated useful lives at annual rates as follows: Freehold buildings 2 - 2 ½% Leasehold buildings and improvements 2 ½ - 20% Furniture, fixtures, plant and equipment 10 - 33⅓% Motor vehicles 20 - 25% University of Technology, Jamaica 125
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