notes to the
financial statements
31 December 2015
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 FRS need not be applied when the
effect of applying them is immaterial. The disclosures required by FRS 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.
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