UOBKH/AR09 [web] - ChartNexus

Notes To Financial Statements
31 December 2009
1 GENERAL
The Company (Registration No. 200004464C) is incorporated in Singapore with its principal place of business and address of its registered office
at 8 Anthony Road, #01-01, Singapore 229957 (2008 : 80 Raffles Place, #30-01 UOB Plaza 1, Singapore 048624). The Company is listed on the
Singapore Exchange Securities Trading Limited. The financial statements are expressed in Singapore dollars.
The principal activity of the Company is that of investment holding. The principal activities of its subsidiaries are stockbroking, futures broking,
investment trading, margin financing, investment holding and provision of nominee and research services.
The consolidated financial statements of the Group and statement of financial position and statement of changes in equity of the Company for
the year ended 31 December 2009 were authorised for issue by the Board of Directors on 31 March 2010.
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING – The financial statements are prepared in accordance with the historical cost convention, except as disclosed in the
accounting policies below, and are drawn up in accordance with the provisions of the Singapore Companies Act and Singapore Financial
Reporting Standards (“FRS”).
ADOPTION OF NEW AND REVISED STANDARDS – In the current financial year, the Group has adopted all the new and revised FRSs and
Interpretations of FRS (“INT FRS”) that are relevant to its operations and effective for annual periods beginning on or after 1 January 2009. The
adoption of these new/revised FRSs and INT FRSs does not result in changes to the Group’s and the Company’s accounting policies and has no
material effect on the amounts reported for the current or prior years except as disclosed below:
FRS 1 – Presentation of Financial Statements (Revised)
FRS 1 (2008) has introduced terminology changes (including revised titles for the financial statements) and changes in the format and content
of the financial statements. In addition, the revised Standard requires the presentation of a third statement of financial position at the beginning
of the earliest comparative period presented if the entity applies new accounting policies retrospectively or makes retrospective restatements or
reclassifies items in the financial statements.
Amendments to FRS 107 Financial Instruments : Disclosures – Improving Disclosures about Financial Instruments
The amendments to FRS 107 expand the disclosures required in respect of fair value measurements and liquidity risk. The Group has elected not
to provide comparative information for these expanded disclosures in the current year in accordance with the transitional reliefs offered in
these amendments.
FRS 108 – Operating Segments
The Group has adopted FRS 108 with effect from 1 January 2009. FRS 108 requires operating segments to be identified on the basis of internal
reports about components of the Group that are regularly reviewed by the chief operating decision maker in order to allocate resources to the
segment and to assess its performance. In contrast, the predecessor Standard (FRS 14 Segment Reporting) required an entity to identify two sets of
segments (Business and Geographical), using a risks and rewards approach, with the entity’s ‘system of internal financial reporting to key
management personnel’ serving only as the starting point for the identification of such segments. For the Group, the operating segments
identified under FRS 108 are consistent with those previously identified under FRS 14.
At the date of authorisation of these financial statements, the following FRSs and amendments to FRS that are relevant to the Group and the
Company were issued but not effective:
● Amendment to FRS 39 Financial Instruments: Recognition and Measurement – Eligible Hedged Items
● Amendment to FRS 39 Financial Instruments: Recognition and Measurement and INT FRS 109 Reassessment of Embedded Derivatives – Amendments
relating to Embedded Derivatives
● FRS 27 (Revised) Consolidated and Separate Financial Statements; and FRS 103 (Revised) Business Combinations
● Improvements to Financial Reporting Standards (issued in June 2009)
Consequential amendments were also made to various standards as a result of these new/revised standards.
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