Powering growth - Aztech Group Ltd - Investor Relations
Powering growth - Aztech Group Ltd - Investor Relations Powering growth - Aztech Group Ltd - Investor Relations
50a z t e c h a n n u a l r e p o r t 2 0 0 9F i n a n c i a l S t a t e m e n t sNOTES TO FINANCIAL STATEMENTSDecember 31, 20091 GENERALThe Company (Registration No. 1986-01642-R) is incorporated in Singapore with its principal place of business and registered office at 31Ubi Road 1, Aztech Building, Singapore 408694. The Company is listed on the Singapore Exchange Securities Trading Limited. The financialstatements are expressed in Singapore dollars and all values are rounded to the nearest thousand ($’000) unless otherwise indicated.The Company changed its name from Aztech Systems Ltd to Aztech Group Ltd on April 21, 2009.In the previous financial year, the principal activities of the Company are to engage in the design, manufacture and distribution ofmulticommunication products and computer peripherals. As a result of the Group’s internal reorganisation in the current financial year, theprincipal activities of the Company have changed to that of investment holding, sale of electronic products and services.The principal activities of the subsidiaries are disclosed in Note 12 to the financial statements.The consolidated financial statements of the Group and the statement of financial position and statement of changes in equity of the Companyfor the year ended December 31, 2009 were authorised for issue by the Board of Directors on March 15, 2010.2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESBASIS OF ACCOUNTING - The financial statements are prepared in accordance with the historical cost convention, except as disclosed in theaccounting policies below, and are drawn up in accordance with the provisions of the Singapore Companies Act and Singapore Financial ReportingStandards (“FRS”).ADOPTION OF NEW AND REVISED STANDARDS - In the current financial year, the Group has adopted all the new and revised FRSs andInterpretations of FRSs (“INT FRSs”) that are relevant to its operations and effective for annual periods beginning on or after January 1, 2009.The adoption of these new/revised FRSs and INT FRSs does not result in changes to the Group’s and the Company’s accounting policies and hasno material effect on the amounts reported for the current or prior years, except as disclosed below:FRS 1 – Presentation of Financial Statements (Revised)FRS 1(2008) has introduced terminology changes (including revised titles for the financial statements) and changes in the format and contentof the financial statements. In addition, the revised Standard requires the presentation of a third statement of financial position at the beginningof the earliest comparative period presented if the entity applies new accounting policies retrospectively or makes retrospective restatements orreclassifies items in the financial statements.Amendments to FRS 107 Financial Instruments : Disclosures - Improving Disclosures about Financial InstrumentsThe amendments to FRS 107 expand the disclosures required in respect of fair value measurements and liquidity risk. The Group has elected notto provide comparative information for these expanded disclosures in the current year in accordance with the transitional reliefs offered in theseamendments.FRS 108 – Operating SegmentsThe Group adopted FRS 108 with effect from January 1, 2009. FRS 108 requires operating segments to be identified on the basis of internalreports about components of the Group that are regularly reviewed by the chief operating decision maker in order to allocate resources to thesegment and to assess its performance. In contrast, the predecessor Standard (FRS 14 Segment Reporting) required an entity to identify twosets of segments (Business and Geographical), using a risks and rewards approach, with the entity’s ‘system of internal financial reporting to keymanagement personnel’ serving only as the starting point for the identification of such segments. As a result, following the adoption of FRS 108,the identification of the Group’s reportable segments has changed (Note 33).The comparatives have been restated to conform to the requirements of FRS 108.
F i n a n c i a l S t a t e m e n t sa z t e c h a n n u a l r e p o r t 2 0 0 9512 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont’d)At the date of authorisation of these financial statements, the following FRSs, INT FRSs and amendments to FRSs that are relevant to the Groupand the Company were issued but not effective:FRS 27 (Revised) - Consolidated and separate Financial StatementsFRS 103 (Revised) - Business CombinationsFRS 107 - Financial Instruments: Disclosure regarding reclassification of financial assetsAmendment to FRS 7 - Statement of Cash FlowAmendments to FRS 38 - Intangible AssetsAmendments to FRS 39 - Financial Instruments: Recognition and measurementConsequential amendments were also made to various standards as a result of these new/revised standards.Management anticipates that the adoption of the above FRSs, INT FRSs and amendments to FRSs in future periods will not have a material impacton the financial statements of the Group and of the Company in the period of their initial adoption.BASIS OF CONSOLIDATION - The consolidated financial statements incorporate the financial statements of the Company and entities (includingspecial purpose entities) controlled by the Company (its subsidiaries). Control is achieved when the Company has the power to govern the financialand operating policies of an entity so as to obtain benefits from its activities.The results of subsidiaries acquired or disposed of during the year are included in the consolidated statement of comprehensive income from theeffective date of acquisition or up to the effective date of disposal, as appropriate.Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies into line with those used by othermembers of the Group.All intra-group transactions, balances, income and expenses are eliminated on consolidation.Minority interests in the net assets of the consolidated subsidiaries are identified separately from the Group’s equity therein. Minority interests consistof the amount of those interests at the date of the original business combination (see below) and the minority’s share of changes in equity since thedate of the combination. Losses applicable to the minority in excess of the minority’s interest in the subsidiary’s equity are allocated against theinterests of the Group except to the extent that the minority has a binding obligation and is able to make an additional investment to cover its shareof those losses.In the Company’s financial statements, investments in subsidiaries are carried at cost less any impairment in net recoverable value that has beenrecognised in profit or loss.BUSINESS COMBINATIONS - The acquisition of subsidiaries is accounted for using the purchase method. The cost of the acquisition ismeasured at the aggregate of the fair values, at the date of exchange, of assets given, liabilities incurred or assumed, and equity instrumentsissued by the Group in exchange for control of the acquiree, plus any costs directly attributable to the business combination. The acquiree’sidentifiable assets, liabilities and contingent liabilities that meet the conditions for recognition under FRS 103 are recognised at their fair valuesat the acquisition date, except for non-current assets (or disposal groups) that are classified as held for sale in accordance with FRS 105 Non-Current Assets Held for Sale and Discontinued Operations, which are recognised and measured at fair value less costs to sell.Goodwill arising on acquisition is recognised as an asset and initially measured at cost, being the excess of the cost of the business combinationover the Group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised. If, after reassessment,the Group’s interest in the net fair value of the acquiree’s identifiable assets, liabilities and contingent liabilities exceeds the cost of the businesscombination, the excess is recognised immediately in profit or loss.The interest of minority shareholders in the acquiree is initially measured at the minority’s proportion of the net fair value of the assets, liabilitiesand contingent liabilities recognised.
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50a z t e c h a n n u a l r e p o r t 2 0 0 9F i n a n c i a l S t a t e m e n t sNOTES TO FINANCIAL STATEMENTSDecember 31, 20091 GENERALThe Company (Registration No. 1986-01642-R) is incorporated in Singapore with its principal place of business and registered office at 31Ubi Road 1, <strong>Aztech</strong> Building, Singapore 408694. The Company is listed on the Singapore Exchange Securities Trading Limited. The financialstatements are expressed in Singapore dollars and all values are rounded to the nearest thousand ($’000) unless otherwise indicated.The Company changed its name from <strong>Aztech</strong> Systems <strong>Ltd</strong> to <strong>Aztech</strong> <strong>Group</strong> <strong>Ltd</strong> on April 21, 2009.In the previous financial year, the principal activities of the Company are to engage in the design, manufacture and distribution ofmulticommunication products and computer peripherals. As a result of the <strong>Group</strong>’s internal reorganisation in the current financial year, theprincipal activities of the Company have changed to that of investment holding, sale of electronic products and services.The principal activities of the subsidiaries are disclosed in Note 12 to the financial statements.The consolidated financial statements of the <strong>Group</strong> and the statement of financial position and statement of changes in equity of the Companyfor the year ended December 31, 2009 were authorised for issue by the Board of Directors on March 15, 2010.2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESBASIS OF ACCOUNTING - The financial statements are prepared in accordance with the historical cost convention, except as disclosed in theaccounting policies below, and are drawn up in accordance with the provisions of the Singapore Companies Act and Singapore Financial ReportingStandards (“FRS”).ADOPTION OF NEW AND REVISED STANDARDS - In the current financial year, the <strong>Group</strong> has adopted all the new and revised FRSs andInterpretations of FRSs (“INT FRSs”) that are relevant to its operations and effective for annual periods beginning on or after January 1, 2009.The adoption of these new/revised FRSs and INT FRSs does not result in changes to the <strong>Group</strong>’s and the Company’s accounting policies and hasno material effect on the amounts reported for the current or prior years, except as disclosed below:FRS 1 – Presentation of Financial Statements (Revised)FRS 1(2008) has introduced terminology changes (including revised titles for the financial statements) and changes in the format and contentof the financial statements. In addition, the revised Standard requires the presentation of a third statement of financial position at the beginningof the earliest comparative period presented if the entity applies new accounting policies retrospectively or makes retrospective restatements orreclassifies items in the financial statements.Amendments to FRS 107 Financial Instruments : Disclosures - Improving Disclosures about Financial InstrumentsThe amendments to FRS 107 expand the disclosures required in respect of fair value measurements and liquidity risk. The <strong>Group</strong> has elected notto provide comparative information for these expanded disclosures in the current year in accordance with the transitional reliefs offered in theseamendments.FRS 108 – Operating SegmentsThe <strong>Group</strong> adopted FRS 108 with effect from January 1, 2009. FRS 108 requires operating segments to be identified on the basis of internalreports about components of the <strong>Group</strong> that are regularly reviewed by the chief operating decision maker in order to allocate resources to thesegment and to assess its performance. In contrast, the predecessor Standard (FRS 14 Segment Reporting) required an entity to identify twosets of segments (Business and Geographical), using a risks and rewards approach, with the entity’s ‘system of internal financial reporting to keymanagement personnel’ serving only as the starting point for the identification of such segments. As a result, following the adoption of FRS 108,the identification of the <strong>Group</strong>’s reportable segments has changed (Note 33).The comparatives have been restated to conform to the requirements of FRS 108.
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