KIM HENG OFFSHORE & MARINE HOLDINGS LIMITED
ANNUAL REPORT 2014
61
NOTES
TO THE FINANCIAL STATEMENTS
2
BASIS OF PREPARATION (Cont’d)
2.2 Basis of measurement
The financial statements have been prepared on the historical cost basis except as otherwise
described in the notes below.
2.3 Functional and presentational currency
These financial statements are presented in Singapore dollars, which is the Company’s functional
currency. All financial information presented in Singapore dollars have been rounded to the nearest
thousand, unless otherwise stated.
2.4 Use of estimates and judgements
The preparation of the financial statements in conformity with FRSs requires management to make
judgements, estimates and assumptions that affect the application of accounting policies and the
reported amounts of assets, liabilities, income and expenses. Actual results may differ from these
estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimates are revised and in any future periods
affected.
Information about significant areas of estimation uncertainty and critical judgements in applying
accounting policies that have the most significant effect on the amounts recognised in the financial
statements are included in the following note:
Note 4 – depreciation and impairment of property, plant and equipment
Note 8 – allowance for doubtful receivables
2.5 Changes in accounting policies
With effect from 1 January 2014, the Group adopted the new or revised FRS that are mandatory for
application from that date. The adoption of these new or revised FRS did not have any significant
impact on the financial statements.
The accounting policies set out below have been applied consistently to all periods presented in these
financial statements, and have been applied consistently by Group entities.
