KIM HENG OFFSHORE & MARINE HOLDINGS LIMITED
60
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 assumptions and estimation uncertainties that have a significant risk of resulting in a
material adjustment within the next financial year are included in the following notes:
•
Note 4 – depreciation and impairment of property, plant and equipment
•
Note 7 – allowance for inventory obsolescence
•
Note 8 – allowance for doubtful receivables
•
Note 20 – tax expense
2.5 Changes in accounting policies
With effect from 1 January 2015, 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.
3 Significant accounting policies
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, except as explained in note 2.5, which
addresses changes in accounting policies.
