2.
Summary of significant accounting policies (cont’d)
Basis of presentation (cont’d)
∞
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.
Basis of preparation of the financial statements
The preparation of the financial statements in conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure
of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those estimates and assumptions. The estimates and
assumptions are reviewed on an ongoing basis. Apart from those involving estimations and assumptions, management
has made judgements in the process of applying the Group’s accounting policies. The areas requiring management’s
subjective or complex judgements, or areas where estimates and assumptions are significant to the financial statements,
are disclosed at the end of this note to the financial statements.
Revenue recognition
The revenue amount is the fair value of the consideration received or receivable from the gross inflow of economic
benefits during the reporting period arising from the course of the activities of the Group and it is shown net of any
related sales taxes and rebates.
∞
Revenue from construction contracts is recognised in accordance with the accounting policy on construction
contracts (see next note below).
∞
Revenue from sale of goods is recognised when significant risks and rewards of ownership are transferred to
the buyer, there is neither continuing managerial involvement to the degree usually associated with ownership
nor effective control over the goods sold, and the amount of revenue and the costs incurred or to be incurred
in respect of the transaction can be measured reliably.
∞
Revenue from rendering of services is recognised as the services are provided or when the significant acts have
been completed.
∞
Rental revenue is recognised on a time-proportion basis that takes into account the effective yield on the asset
on a straight-line basis over the lease term.
∞
Interest income is recognised using the effective interest method.
∞
Dividend income from equity instruments is recognised when the Group’s right to receive payment is established.
k i n g s m e n c r e a t i v e s l t d
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