DEFINING DESIGN
QUALITY
44
Notes to the Financial Statements
31 December 2014
1.
General
Kingsmen Creatives Ltd. (the “Company”) is a limited liability company incorporated in the Republic of Singapore and
is listed on the Singapore Exchange Securities Trading Limited (the “SGX-ST”). The registered office and principal
place of business of the Company is located at 3 Changi South Lane, Kingsmen Creative Centre, Singapore 486118.
The principal activities of the Company are investment holding and the provision of corporate marketing and other
related services. The principal activities of the subsidiaries are disclosed in the note on investments in subsidiaries.
The financial statements are presented in Singapore dollars (“SGD” or “$”) and all values are rounded to the nearest
thousand ($’000) except when otherwise indicated and they cover the Company and the subsidiaries. The board of
directors approved and authorised these financial statements for issue on the date of the statement by directors.
2.
Summary of significant accounting policies
Accounting convention
The financial statements have been prepared in accordance with the Singapore Financial Reporting Standards
(“FRS”) and the related Interpretations to FRS (“INT FRS”) as issued by the Singapore Accounting Standards Council
and the Singapore Companies Act, Cap. 50. The financial statements are prepared on a going concern basis under
the historical cost convention except where an FRS requires an alternative treatment (such as fair values) as disclosed
where appropriate in these financial statements. The accounting policies which are in accordance with FRSs need
not be applied when the effect of applying them is immaterial. The disclosures required by FRSs need not be made
if the information is immaterial. Other comprehensive income comprises items of income and expense (including
reclassification adjustments) that are not recognised in the income statement, as required or permitted by FRS.
Reclassification adjustments are amounts reclassified to profit or loss in the income statement in the current period
that were recognised in other comprehensive income in the current or previous periods.
Basis of presentation
The consolidated financial statements include the financial statements made up to the end of the reporting period of
the Company and its subsidiaries (collectively, the “Group”). The consolidated financial statements are the financial
statements of the Group in which the assets, liabilities, equity, income, expenses and cash flows of the Company and
its subsidiaries are presented as those of a single economic entity and are prepared using uniform accounting policies
for like transactions and other events in similar circumstances. All significant intragroup balances and transactions,
including income, expenses and cash flows are eliminated on consolidation. Subsidiaries are consolidated from the
date the Group obtains control of the investee and cease when the Group loses control of the investee. Control exists
when the Group has the power to govern the financial and operating policies so as to gain benefits from its activities.
Losses within a subsidiary are attributed to the non-controlling interest even if that results in a deficit balance.
Changes in the Group’s ownership interest in a subsidiary that do not result in the loss of control are accounted
for within equity as transactions with owners in their capacity as owners. The carrying amounts of the Group’s
and non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiary. When
the Group loses control of a subsidiary, it derecognises the assets and liabilities and related equity components
of the former subsidiary. Any gain or loss is recognised in profit or loss. Any investment retained in the former
subsidiary is measured at fair value at the date when control is lost and is subsequently accounted as an associate,
a jointly-controlled entity or an available-for-sale financial asset in accordance with FRS 39 Financial Instruments:
Recognition and Measurement.
Certain of the above-mentioned requirements were applied on a prospective basis. The following differences,
however, are carried forward in certain instances from the previous basis of consolidation prior to 1 January 2010:
•
Acquisition of non-controlling interests, prior to 1 January 2010, was accounted for using the parent entity
extension method, whereby, the difference between the consideration and the book value of the share of the net
assets acquired were recognised in goodwill.
•
Losses incurred by the Group were attributed to the non-controlling interest until the balance was reduced to nil.
Any further losses were attributed to the Group, unless the non-controlling interest had a binding obligation to
cover these losses. Losses prior to 1 January 2010 were not reallocated between non-controlling interest and the
owners of the Company.
•
Upon loss of control, the Group accounted for the investment retained at its proportionate share of net asset value
at the date control was lost. The carrying amount of such investments as at 1 January 2010 has not been restated.
The Company’s separate financial statements have been prepared on the same basis, and as permitted by the
Singapore Companies Act, Cap. 50, the Company’s separate statement of profit or loss and other comprehensive
income is not presented.
