notes to the financial statements - Investor Relations

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CWT Limited 66 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2011 3 SIGNIFICANT ACCOUNTING POLICIES (CONT’D) 3.5 Intangible assets (cont’d) Other intangible assets (cont’d) • Business Relationships (“BRS”) BRS were acquired in a business combination by the Group and have finite useful lives. It is measured at cost less accumulated amortisation and impairment losses. BRS is amortised to profit or loss using the straight-line basis over its estimated useful life of 10 years. • Brand (“BD”) BD was acquired in a business combination by the Group and has finite useful life. It is measured at cost less accumulated amortisation and impairment losses. BD is amortised to profit and loss on a straight-line basis over its estimated useful life of 5 years. The amortisation period and amortisation method of intangible assets are reviewed at each reporting date. 3.6 Inventories Inventories are stated at the lower of cost and net realisable value. Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. Allowance is made where necessary for obsolete, slow moving and defective inventories. (i) Commodity inventories Cost is determined on a first-in, first-out (FIFO) basis and includes the full costs of materials, freight and insurance and all other costs incurred in bringing the inventories to their present conditions and location. (ii) Inventories of other businesses Cost is calculated using the weighted average cost formula or and on a first-in, first-out (FIFO) basis as appropriate and includes all costs of purchase, costs of conversion, freight and insurance and other costs incurred in bringing the inventories to their present location and condition. 3.7 Contract work-in-progress Contract work-in-progress comprises uncompleted service contracts. Contract work-in-progress at the reporting date is recorded in the statement of financial position at cost plus attributable profit less recognised losses, net of progress billings and allowances for foreseeable losses, and is presented in the statement of financial position as contract work-in-progress (as an asset) or as excess of progress billings over contract work-inprogress (as a liability), as applicable. Cost includes all expenditure related directly to specific contracts and an allocation of fixed and variable overheads incurred in the Group’s contract activities based on normal operating capacity. Allowance is made where applicable for any foreseeable losses on uncompleted contracts as soon as the possibility of the loss is ascertained. Progress claims not yet paid by the customer are included in the statement of financial position under progress billings receivable.
NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2011 3 SIGNIFICANT ACCOUNTING POLICIES (CONT’D) 3.8 Non-current assets held-for-sale Annual Report 2011 Non-current assets that are expected to be recovered primarily through sale rather than through continuing use are classified as held-for-sale. Immediately before classification as held-for-sale, the assets are remeasured in accordance with the Group’s accounting policies. Thereafter, the assets are measured at the lower of their carrying amount and fair value less cost to sell. Impairment losses on initial classification as held-for-sale and subsequent gains or losses on remeasurement are recognised in profit or loss. Gains are not recognised in excess of any cumulative impairment loss. 3.9 Financial instruments Derivative financial instruments The Group holds derivative financial instruments to hedge its foreign currency and interest rate risk exposures. Derivatives are initially recognised at fair value at the date the derivative contracts are entered into and are subsequently remeasured to their fair values at the end of each reporting period. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and is effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship. A derivative with a positive fair value is recognised as a financial asset; a derivative with a negative fair value is recognised as a financial liability. A derivative is presented as a non-current asset or non-current liability if the remaining maturity of the instrument is more than 12 months and it is not expected to be realised or settled within 12 months. Other derivatives are presented as current assets or liabilities. Derivative financial instruments relate to the commodity trading activities and consist of instruments such as commodity futures, commodity options, commodity fixed price forward contracts and other forward contracts with determinable pricing. All purchases and sales of derivative financial instruments are recognised on the trade date, which is the date that the Group commits to sell or purchase the asset. All realised and unrealised gains and losses arising from changes in the fair value of derivative financial instruments are included in profit or loss in the period in which they arise. The fair value of publicly traded derivatives is based on quoted market prices at the balance sheet date. The fair value of commodity fixed price forward contracts is calculated as the present value of the estimated future cash flows. The fair value of foreign exchange forward contracts is determined using forward foreign exchange market rates at the balance sheet date. Hedge accounting At the inception of a hedge relationship, the Group formally designates and documents the hedge relationship to which the Group wishes to apply hedge accounting, as well as its risk management objectives and strategy for undertaking the hedge transactions. The documentation includes identification of the hedging instrument, the hedge item or transaction, the nature of risk being hedged and how the entity assess the hedging instrument’s effectiveness in offsetting the exposure to changes in the hedged item’s fair value or cash flows attributable to the hedged risk. Such hedges are expected to be highly effective in achieving offsetting changes in fair value of or cash flows and are assessed on an ongoing basis to determine that they actually have been highly effective throughout the financial reporting periods for which they are designated. Cash flow hedge When a derivative is designated as the hedging instrument in a hedge of the variability in cash flows attributable to a particular risk associated with a recognised asset or liability or a highly probable forecast transaction that could affect profit or loss, the effective portion of changes in the fair value of the derivative is recognised in other comprehensive income and presented in the hedging reserve in equity. Any ineffective portion of changes in the fair value of the derivative is recognised immediately in profit or loss. 67
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CWT Limited Annual Report 2011 Annu
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ABOUT THE CWT GROUP VISION To Be A
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GROUP FIVE-YEAR FINANCIAL SUMMARY F
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Largest warehouse operator in Singa
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CWT Limited CHAIRMAN’S STATEMENT
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CWT Limited BOARD OF DIRECTORS Loi
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CWT Limited EXECUTIVE TEAM Loi Pok
Page 17 and 18: ELEVATION Rising through resilience
Page 19 and 20: COMMODITY SUPPLY CHAIN MANAGEMENT C
Page 21: MIDDLE EAST Kuwait Kuwait UK Estoni
Page 24 and 25: CWT Limited OPERATIONS REVIEW “Am
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Page 29 and 30: CHARACTER Our identity and performa
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Page 33 and 34: Investor Relations We regularly eng
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Page 47 and 48: DIRECTORS’ REPORT YEAR ENDED 31 D
Page 49 and 50: STATEMENT BY DIRECTORS YEAR ENDED 3
Page 51 and 52: STATEMENT OF FINANCIAL POSITION AS
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Page 55 and 56: CONSOLIDATED STATEMENT OF CHANGES I
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Page 59 and 60: CONSOLIDATED STATEMENT OF CASH FLOW
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NOTES TO THE FINANCIAL STATEMENTS Y
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STATISTICS OF SHAREHOLDINGS SHAREHO
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NOTICE OF ANNUAL GENERAL MEETING An
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NOTICE OF ANNUAL GENERAL MEETING An
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CWT LIMITED (Company Registration N
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CORPORATE DIRECTORY Loi Pok Yen Gro
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notes to the financial statements - Investor Relations

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