inter roller fa final

Notes to the Financial Statements1 General informationThe financial statements of the Group and of the Company for the year ended 31 December 2004 were authorisedfor issue in accordance with a resolution of the directors on the date of the Statement By Directors and the ChiefFinancial Officer.The Company is a limited liability company and domiciled in the Republic of Singapore.The registered office is located at 20 Benoi Crescent, Jurong, Singapore 629983.The number of employees of the Group as at 31 December 2004 is 465 (2003 - 376) and the company is 305(2003 - 284) respectively.2 Summary of significant accounting policiesBasis of preparationThe financial statements are prepared under the historical cost convention as modified by the revaluation ofcertain properties and in accordance with Singapore Financial Reporting Standards (“FRS”) including relatedInterpretations promulgated by the Council on Corporate Disclosure and Governance.The preparation of the financial statements in conformity with FRS requires the use of estimates and assumptionsthat affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at thedate 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, actualresults may differ from those estimates.ConsolidationThe financial statements of the Group include the financial statements of the Company and the subsidiarycompanies made up to the end of the financial year. Details of its subsidiary companies are given in Note 10. Allinter-company balances and significant inter-company transactions and resulting unrealized profits or lossesare eliminated on consolidation and the consolidated financial statements reflect external transactions andbalances only. The results of subsidiary companies acquired or disposed of during the financial year are includedor excluded from the consolidated income statement from the effective date of acquisition or disposal.Goodwill on consolidation arises where the purchase price exceeds the fair values attributed to net assets atthe date of acquisition. Goodwill is carried at cost less any accumulated amortization and any accumulatedimpairment losses. Goodwill is amortised on a systematic basis over its useful life of 5 years.At the balance sheet date, the Group assesses whether there is any indication of impairment. If such indicationsexist, an analysis is performed to assess whether the carrying amount of goodwill is fully recoverable. A writedown is made if the carrying amount exceeds the recoverable amount.Property, plant and equipment and depreciationProperty, plant and equipment are stated at cost or valuation less accumulated depreciation and impairmentlosses, if any.Depreciation is computed utilising the straight-line method to write off the cost of these property, plant andequipment over their estimated useful lives as follows:inter-roller engineering limited annual report2004 45