FY 2011 Annual Report - Sheng Siong

Sheng Siong Annual Report 2011
Notes to the Financial Statements
2 Restructuring exercise (Continued)
ii. Acquisition of 100% entire equity interest in SS Malaysia
Pursuant to a share swap agreement on 16 March 2011, the Company acquired from Mr. Lim Hock
Chee, Mr. Lim Hock Eng, and Mr. Lim Hock Leng the entire 100% of the issued share capital of SS
Malaysia, comprising four (4) ordinary shares for an aggregate purchase consideration of approximately
S$1.67. The purchase consideration was satisfied by the issuance and allotment of three (3) new shares
in the capital of the Company, credited as fully paid. The purchase consideration was arrived at after
taking into consideration the net asset value of SS Malaysia as at 30 September 2010.
Following the completion of the Restructuring Exercise on 17 March 2011, the Company became the parent
of SS Supermarket, CMM Marketing and SS Malaysia.
The Restructuring Exercise as described above is considered by management to be a transfer of equity interests
under common control and have been accounted for in a manner similar to the pooling-of-interests method.
Accordingly, the assets and liabilities of these entities have been included in the financial statements at their
historical carrying amounts. Although the restructuring exercise was entered into on 17 March 2011, the
financial statements present the financial position, results of operations and cash flows as if the restructuring
exercise had occurred as of the beginning of the earliest period presented to reflect the economic substance
of the combined enterprise.
3 Basis of preparation
3.1 Statement of compliance
The financial statements have been prepared in accordance with Singapore Financial Reporting Standards
(“FRS”).
3.2 Basis of measurement
The financial statements have been prepared on the historical cost basis except for certain financial assets and
liabilities which are measured at fair value.
3.3 Functional and presentation currency
These financial statements are presented in Singapore dollars, which is the Company’s functional currency.
All financial information presented in Singapore dollars has been rounded to the nearest thousand, unless
otherwise stated.
3.4 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.
47