Page 59 - cosmosteel

ACHIEVING THE RIGHT BALANCE COSMOSTEEL ANNUAL REPORT 2013 57
1. GENERAL
The company is incorporated in Singapore with limited liability. The financial statements
are presented in Singapore dollars and they cover the parent and the group’s subsidiaries.
The board of directors approved and authorised these financial statements for issue on the
date of the statement by directors.
The company is an investment holding company. It is listed on the Singapore Exchange
Securities Trading Limited.
The principal activities of the subsidiaries are described in Note 14 below.
The registered office is: 50 Raffles Place #06-00 Singapore Land Tower, Singapore 048623.
The company is situated in Singapore.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Convention
The financial statements have been prepared in accordance with the Singapore Financial
Reporting Standards (“FRS”) and the related Interpretations to FRS (“INT FRS”) as issued
by the Singapore Accounting Standards Council and the Companies Act, Chapter 50. The
financial statements are prepared on a going concern basis under the historical cost convention
except where a FRS requires an alternative treatment (such as fair values) as disclosed
where appropriate in these financial statements. The accounting policies in FRSs need not
be applied when the effect of applying them is immaterial. The disclosures required by FRSs
need not be made if the information is immaterial. Other comprehensive income comprises
items of income and expense (including reclassification adjustments) that are not recognised
in the income statement, as required or permitted by FRS. Reclassification adjustments are
amounts reclassified to profit or loss in the income statement in the current period that were
recognised in other comprehensive income in the current or previous periods.
Basis of Presentation
The consolidated financial statements include the financial statements made up to the end of
the reporting year of the company and all of its directly and indirectly controlled subsidiaries.
The consolidated financial statements are the financial statements of the group presented as
those of a single economic entity and are prepared using uniform accounting policies for like
transactions and other events in similar circumstances. All significant intragroup balances and
transactions, including profit or loss and other comprehensive income items and dividends
are eliminated on consolidation. The results of any subsidiary acquired or disposed of during
the reporting year are accounted for from the respective dates of acquisition or up to the date
of disposal which is the date on which effective control is obtained of the acquired business,
until that control ceases.
notes to
the f inanc i al statements
30 September 2013