SAILING THE SEAS OF SUCCESS - Swissco Holdings Limited

NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2004
2. Restructuring Exercise (continued)
(e)
Total assets and liabilities contributed by the Entities to the Group as a result of the Restructuring Exercise
mentioned in 2(a) to 2(d) above are as follows:
At 6 October At 31 December
2004
2003
$ $
Total assets 19,793,298 27,271,870
Total liabilities 4,349,645 14,641,308
The Company does not hold material assets and liabilities prior to the Restructuring Exercise.
(f)
The sales, other operating income and net profits contributed to the Group as a result of the Restructuring
Exercise mentioned in 2(a) to 2(d) above, for the period prior to 6 October 2004 that are included in the
consolidated income statement are as follows:
At 6 October
2004
At 31 December
2003
$ $
Sales revenue 7,424,439 12,129,518
Other operating revenue 3,389,031 2,137,553
Net profit 2,813,082 4,090,608
The Company’s contributions to the above components of the income statement are immaterial.
(g)
The consolidated financial statements of the Group for the financial year ended 31 December 2004 and
31 December 2003 have been prepared using the “pooling-of-interest” method. Under the pooling-ofinterest
method, the financial statements of the Group for the financial year ended 31 December 2004
and the comparatives for 2003 have been presented as if the Group structure immediately after the
Restructuring Exercise has been in existence prior to 6 October 2004 and the assets and liabilities are
brought into the consolidated financial statements at their existing carrying amounts. The comparative
figures of the Group, which have been prepared using audited financial statements of the individual
entities constituting the Group, have not been audited.
3. Significant accounting policies
(a)
Basis of preparation
The financial statements have been prepared in accordance with Singapore Financial Reporting Standards
(“FRS”). These financial statements have been prepared under the historical cost convention.
The preparation of financial statements in conformity with FRS requires the use of 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 financial year.
Although these estimates are based on management’s best knowledge of current events and actions, actual
results may ultimately differ from those estimates.
(b)
Revenue recognition
Revenue comprises the fair value for the sale of goods and rendering of services, net of goods and services tax,
rebates and discounts, and after eliminating sales within the Group.
Revenue from the sale of goods is recognised on completion of delivery when significant risks and rewards of
ownership of the goods are transferred to the buyer.
SWISSCO INTERNATIONAL LIMITED_30