Annual Report 2010 - Leeden Limited

Leeden Limited Annual Report 2010Notes to the Financial Statementsfor the Financial Year ended 31 December 20101. Corporate information (cont’d)fghijklmnopAudited by Ong & Wong, Chartered Accountants, Malaysia.Audited by Riyanto, SE, AK., Indonesia.Audited by U Tin Win Group, Certified Public Accountants, Myanmar.Audited by N&S Audit Partner, Thailand.Audited by Hacketts, DFK, Australia.Audited by Huang Yan Teo & Co, Chartered Accountants, Malaysia.Audited by Shanghai Hui Hong, Certified Public Accountants, Co., Ltd.Audited by Taizhou Mingrui, Certified Public Accountants, Co., Ltd.Audited by World Link CPA Limited, Hong Kong.Audited by Lianyungang Tianzhou Lianhe, Certified Public Accountants, Co., Ltd.Not required to be audited under the law of country of incorporation.2. Summary of significant accounting policies2.1 Basis of preparationThe consolidated financial statements of the Group and the balance sheet and statement of changes in equity of theCompany have been prepared in accordance with Singapore Financial Reporting Standards (“FRS”).The financial statements have been prepared on the historical cost basis except as disclosed in the accounting policiesbelow.The financial statements are presented in Singapore Dollars (SGD or $) and all values in the tables are rounded to thenearest thousand ($’000) as indicated.2.2 Changes in accounting policiesThe accounting policies adopted are consistent with those of the previous financial year except in the current financialyear, the Group has adopted all the new and revised standards and Interpretations of FRS (INT FRS) that are effective forannual periods beginning on or after 1 January 2010. The adoption of these standards and interpretations did not haveany effect on the financial performance or position of the Group and the Company except as disclosed below:FRS 103 Business Combinations (revised) and FRS 27 Consolidated and Separate Financial Statements (revised)The revised FRS 103 Business Combinations and FRS 27 Consolidated and Separate Financial Statements are applicablefor annual periods beginning on or after 1 July 2009. As of 1 January 2010, the Group adopted both revised standards atthe same time in accordance with their transitional provisions.FRS 103 Business Combinations (revised)The revised FRS 103 introduces a number of changes to the accounting for business combinations that will impact theamount of goodwill recognised, the reported results in the period that an acquisition occurs, and future reported results.Changes in significant accounting policies resulting from the adoption of the revised FRS 103 include:– Transaction costs would no longer be capitalised as part of the cost of acquisition but will be expensedimmediately;– Consideration contingent on future events are recognised at fair value on the acquisition date and any changes inthe amount of consideration to be paid will no longer be adjusted against goodwill but recognised in profit or loss;– The Group elects for each acquisition of a business, to measure non-controlling interest at fair value, or at the noncontrollinginterest’s proportionate share of the acquiree’s identifiable net assets, and this impacts the amount ofgoodwill recognised; and– When a business is acquired in stages, the previously held equity interests in the acquiree is remeasured to fairvalue at the acquisition date with any corresponding gain or loss recognised in profit or loss, and this impacts theamount of goodwill recognised.47