FINANCIAL STATEMENTS - Mewah Group

ANNUAL REPORT 2012NOTES TOTHE FINANCIAL STATEMENTSFor the financial year ended 31 December 2012These notes form an integral part of and should be read in conjunction with the accompanying financial statements.1. GENERAL INFORMATIONMewah International Inc. (the “Company”) is listed on the Singapore Exchange and incorporated and domiciled in the Cayman Islands.The address of its registered office is Harbour Place, 2nd Floor, 103 South Church Street, P.O. Box 472, George Town, Grand Cayman,KY1-1106, Cayman Islands. The principal place of business of the Company is at 5, International Business Park, #05-00, MewahBuilding, Singapore 609914.The principal activity of the Company is that of investment holding. The principal activities of its subsidiaries are disclosed in Note 38of the financial statements.2. SIGNIFICANT ACCOUNTING POLICIES2.1 Basis of preparationThese financial statements have been prepared in accordance with Singapore Financial Reporting Standards (“FRS”). The financialstatements have been prepared under the historical cost convention, except as disclosed in the accounting policies below.The preparation of financial statements in conformity with FRS requires management to exercise its judgement in the process ofapplying the Group’s accounting policies. It also requires the use of certain critical accounting estimates and assumptions. Theareas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to thefinancial statements, are disclosed in Note 3.Interpretations and amendments to published standards effective in 2012On 1 January 2012, the Group adopted the new or amended FRS and Interpretations to FRS (“INT FRS”) that are mandatory forapplication to the financial year. Changes to the Group’s accounting policies have been made as required, in accordance with thetransitional provisions in the respective FRS and INT FRS.The adoption of these new or amended FRS and INT FRS did not result in substantial changes to the accounting policies of theGroup and Company and had no material effect on the amounts reported for the current or prior financial years.2.2 Revenue recognitionRevenue for the Group represents the fair value of the consideration received or receivable from the gross inflow of economicbenefits during the financial year arising from the course of ordinary activities of the Group’s business. Revenue is presented net ofgoods and services tax, rebates and discounts, and after eliminating sales within the Group.49