Page 87 - ar2013.pdf

NOTES TO THE FINANCIAL STATEMENTS
For the Ànancial year ended 31 December 2013
85
Annual Report 2013
F i nanc i a l Statement s
These notes form an integral part of and should be read in conjunction with the accompanying financial statements.
1. General information
COSCO Corporation (Singapore) Limited (the “Company”) is incorporated and domiciled in Singapore. The address
of its registered office is 9 Temasek Boulevard, #07-00 Suntec Tower Two, Singapore 038989.
The Company is listed on the Singapore Exchange.
The principal activities of the Company are those of investment holding. The principal activities of its subsidiaries are
set out in Note 21 to the financial statements.
2. Significant accounting policies
2.1 Basis of preparation
These financial statements have been prepared in accordance with Singapore Financial Reporting Standards (“FRS”)
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 of applying the Group’s accounting policies. It also requires the use of certain critical accounting estimates
and assumptions. The areas involving a higher degree of judgement or complexity, or areas where assumptions and
estimates are significant to the financial statements, are disclosed in Note 3.
Interpretations and amendments to published standards effective in 2013
On 1 January 2013, the Group adopted the new or amended FRS and Interpretations to FRS (“INT FRS”) that are
mandatory for application for the financial year. Changes to the Group’s accounting policies have been made as
required, in accordance with the transitional 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 the Group and the Company and had no material effect on the amounts reported for the current or prior
financial years.
FRS 113 Fair Value Measurement
FRS 113 aims to improve consistency and reduce complexity by providing a precise definition of fair value and a
single source of fair value measurement and disclosure requirements for use across FRSs. The requirements do not
extend the use of fair value accounting but provide guidance on how it should be applied when its use is already
required or permitted by other standards within FRSs.
The adoption of FRS 113 does not have any material impact on the accounting policies of the Group. The Group
has incorporated the additional disclosures required by FRS 113 into the financial statements.
2.2 Revenue recognition
Revenue comprises the fair value of the consideration received or receivable for the ship repair, ship building and
marine engineering income, rental income, charter hire revenue, and sale of scrap materials in the ordinary course
of the Group’s activities. Revenue is presented net of value-added tax, rebates and discounts, and after eliminating
revenue within the Group.