- Joined
- Dec 30, 2010
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My grumble is that there is no disclosure on whether the functional currency is US$ or S$. By “functional currency”, an accountant means the currency in which the accouts are prepared. We only know that the returns are presented in US$, the presentational currency. This does not imply that the functional currency is US$.
… So a question one might ask would be, what are GIC’s returns if they were converted to SGD? GIC reports its performance in terms of real annualised returns over global inflation, but that is quite irrelevant if the main concern is over whether GIC is able to generate sufficient returns to pay interest on CPF deposits. The USD-SGD exchange rate (as well as Singapore’s inflation rate) matters more than the global inflation rate (however that is calculated) since ultimately interest CPF deposits are credited in terms of SGD.
Is GIC able to pay off CPF deposits solely by its reported investment returns? Let’s take a look.
- http://atans1.wordpress.com/2011/09/27/gic-smoke-mirrors-2/
… So a question one might ask would be, what are GIC’s returns if they were converted to SGD? GIC reports its performance in terms of real annualised returns over global inflation, but that is quite irrelevant if the main concern is over whether GIC is able to generate sufficient returns to pay interest on CPF deposits. The USD-SGD exchange rate (as well as Singapore’s inflation rate) matters more than the global inflation rate (however that is calculated) since ultimately interest CPF deposits are credited in terms of SGD.
Is GIC able to pay off CPF deposits solely by its reported investment returns? Let’s take a look.
- http://atans1.wordpress.com/2011/09/27/gic-smoke-mirrors-2/
