Notes to the Financial Statements - Swissco Holdings Limited

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Notes to the Financial Statements For the financial year ended 31 December 2009 2. Significant accounting policies (continued) 2.1 Basis of preparation (continued) Interpretations and amendments to published standards effective in 2009 (continued) • Amendment to FRS 107 “Improving disclosures about financial statements“ (effective from 1 January 2009). The amendment required enhances disclosures about fair value measurement and liquidity risk. In particular, the amendment requires disclosure of fair value measurements by level of a fair value measurement hierarchy. The adoption of the amendment results in additional disclosures but does not have an impact on the accounting policies and measurement bases adopted by the Group. • Revised FRS 23 “Borrowing Costs” (effective from 1 January 2009). The revised standard removes the option to recognise immediately as an expense borrowing costs that are attributable to qualifying assets, except for those borrowing costs on qualifying assets that are measured at fair value or inventories that are manufactured or produced in large quantities on a repetitive basis. The amendment does not have a material impact on the Group’s financial statements. 2.2 Revenue recognition Sales comprise the fair value of the consideration received or receivable for the rendering of services in the ordinary course of the Group’s activities. Sales are presented net of goods and services tax, rebates and discounts, and after eliminating sales within the Group. The Group recognises revenue when the amount of revenue and related cost can be reliably measured, it is probable that the collectibility of the related receivables is reasonably assured and when the specific criteria for each of the Group’s activities are met as follows: (a) Chartering income, sale of out-port-limit services and related income Chartering income is recognised in profit or loss on a straight-line basis over the charter hire period. Sale of out-port-limit services and related income is recognised when the services are rendered. (b) Ship repair and related services Revenue from rendering of services for short-term ship repair projects is recognised upon completion of the job as certified by the service engineers. Provision is made in full where applicable for anticipated losses on project in progress. (c) Interest income Interest income is recognised using the effective interest method. (d) Dividend income 2.3 Group accounting Dividend income is recognised when the right to receive payment is established. (a) Subsidiaries Subsidiaries are entities (including special purpose entities) over which the Group has power to govern the financial and operating policies, generally accompanied by a shareholding giving rise to a majority of the voting rights. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether the Group controls another entity. Swissco International Limited Annual Report 2009 42
Notes to the Financial Statements For the financial year ended 31 December 2009 2. Significant accounting policies (continued) 2.3 Group accounting (continued) (a) Subsidiaries (continued) The purchase method of accounting is used to account for the acquisition of subsidiaries except for the subsidiaries acquired by the Company as part of a restructuring exercise on 6 October 2004 from its controlling shareholders. These subsidiaries are Swissco Offshore Pte Ltd, Singapore Marine Logistics Pte Ltd, Swissco Offshore Ltd and Regional Marine Supply Pte Ltd, and they are consolidated using the “pooling of interest” method. Under the pooling of interest method, the results and balance sheet of the Group were presented as if the Group had been in existence prior to 6 October 2004 and the assets and liabilities were brought into the consolidated financial statements at their existing carrying amounts. Under the purchase method of accounting, the cost of an acquisition is measured as the fair value of the assets given, equity instruments issued or liabilities incurred or assumed at the dates of exchange, plus costs directly attributable to the acquisition. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair value on the date of acquisition, irrespective of the extent of non-controlling interest. Subsidiaries are consolidated from the date on which control is transferred to the Group. They are de-consolidated from the date on which control ceases. In preparing the consolidated financial statements, transactions, balances and unrealised gains on transactions between group entities are eliminated. Unrealised losses are also eliminated but are considered an impairment indicator of the asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group. Please refer to the paragraph “Investments in subsidiaries, associated companines and joint ventures” for the accounting policy on investments in subsidiaries in the separate financial statements of the Company. (b) Associated companies and joint ventures Associated companies are entities over which the Group has significant influence, but not control, generally accompanied by a shareholding giving rise to between and including 20% and 50% of the voting rights. Joint ventures are entities over which the Group has contractual arrangements to jointly share the control over the economic activity of the entities with one or more parties. Investments in associated companies and joint ventures are accounted for in the consolidated financial statements using the equity method of accounting less impairment losses. Investments in associated companies and joint ventures in the consolidated balance sheet includes goodwill (net of any accumulated impairment losses) identified on acquisition, where applicable. Investments in associated companies and joint ventures are initially recognised at cost. The cost of an acquisition is measured at the fair value of the assets given, equity instruments issued or liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the acquisition. 43 Annual Report 2009 Swissco International Limited
Page 1 and 2: Swissco International Limited Steer
Page 3 and 4: Corporate Profile Swissco Internati
Page 5 and 6: Ship Repair and Maintenance Small t
Page 7 and 8: Financial Summary FY2009 FY2008 FY2
Page 9 and 10: Chairman’s Statement Dividend The
Page 11 and 12: ENTRY INTO ACCOMMODATION WORK BOAT
Page 13 and 14: Fleet Composition Our fleet has gro
Page 15 and 16: Operations Review Our vessels AHT B
Page 17 and 18: SW Marine (M) Sdn Bhd 49% PT Swissc
Page 19 and 20: Board of Directors Mr Phillip Chan
Page 21 and 22: Key Management Mr Sam Kwai Hoong Ch
Page 23 and 24: Corporate Governance Report Swissco
Page 25 and 26: Corporate Governance Report The NC
Page 27 and 28: Corporate Governance Report Executi
Page 29 and 30: Corporate Governance Report The Aud
Page 31 and 32: Directors' Report For the financial
Page 37 and 38: Statement by Directors For the fina
Page 39 and 40: Consolidated Statement of Comprehen
Page 41 and 42: Consolidated Statement of Changes i
Page 43: Notes to the Financial Statements F
Page 47 and 48: Notes to the Financial Statements F
Page 87 and 88: Statistics of Shareholdings As at 1
Page 89 and 90: Notice of Sixth Annual General Meet
Page 91 and 92: Notice of Sixth Annual General Meet
Page 93 and 94: NOTES 1. A member entitled to atten

Notes to the Financial Statements - Swissco Holdings Limited

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