Raffles Insitutep Xpo - Raffles Medical Group

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ANNUAL REPORT 2004 p43 NOTES TO THE FINANCIAL STATEMENTS (CONT’D) 2 Summary of Significant Accounting Policies (cont’d) 2.3 Basis of consolidation Subsidiaries Subsidiaries are companies controlled by the Company. Control exists when the Company has the power, directly or indirectly, to govern the financial and operating policies of a company so as to obtain benefits from its activities. Investments in subsidiaries are stated in the Company’s balance sheet at cost less impairment losses. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. Jointly controlled entities Jointly controlled entities are enterprises over whose activities the Group has joint control, established by contractual agreement. Investments in jointly controlled entities are stated in the Company’s balance sheet at cost, less impairment losses. In the Group’s financial statements, they are accounted for using the equity method of accounting. 2.4 Foreign currencies Foreign currency transactions Monetary assets and liabilities in foreign currencies, except where these are hedged by forward exchange contracts, are translated into Singapore dollars at rates of exchange approximate to those ruling at the balance sheet date. Transactions in foreign currencies are translated at rates ruling on transaction dates. Translation differences are included in the profit and loss account. Foreign entities The assets and liabilities of foreign entities are translated to Singapore dollars at the rates of exchange ruling at the balance sheet date. The results of foreign entities are translated at the average exchange rates for the year. Exchange differences arising on translation are recognised directly in equity. 2.5 Property, plant and equipment Property, plant and equipment are stated at cost less accumulated depreciation and impairment losses. Depreciation is provided on a straight-line basis so as to write off items of property, plant and equipment, and major components that are accounted for separately, over their estimated useful lives as follows: Leasehold properties Medical equipment Furniture and fittings Office equipment Motor vehicles Computers Renovations Facilities equipment 50 years 8-10 years 10 years 10 years 10 years 3 years Shorter of 6 years and term of lease 10 years
RAFFLES MEDICAL GROUP p44 NOTES TO THE FINANCIAL STATEMENTS (CONT’D) 2 Summary of Significant Accounting Policies (cont’d) 2.6 Intangible assets Assignment fees Assignment fees relate to amounts paid to secure the tenancy of certain clinic premises. Assignment fees are stated at cost less accumulated amortisation and impairment losses. Assignment fees are amortised and recognised in the profit and loss account on a straight line basis over its estimated useful life of 10 years. Goodwill Goodwill arising on acquisition represents the excess of the cost of acquisition over the fair value of the Group’s share of the identifiable net assets acquired. Goodwill is stated at cost less accumulated amortisation and impairment losses. In respect of jointly controlled entities, the carrying amount of goodwill is included in the carrying amount of the investment in the jointly controlled entities. Goodwill is amortised and recognised in the profit and loss account on a straight line basis over its estimated useful life of 20 years. 2.7 Inventories Inventories, comprising mainly pharmaceutical and medical supplies, are stated at the lower of cost and net realisable value. Cost is determined using the first-in-first-out cost formula and comprises all costs of purchase and other costs incurred in bringing the inventories to their present location and condition. 2.8 Cash and cash equivalents Cash and cash equivalents comprise cash balances and bank deposits. For the purpose of the statement of cash flows, cash and cash equivalents are presented net of bank overdrafts which are repayable on demand and which form an integral part of the Group’s cash management. 2.9 Financial assets Debt and equity securities held for the long term are stated at amortised cost less an allowance for diminution in value, which, in the opinion of the directors, is other than temporary. Debt securities held for the short term are stated at market value. Any increases or decreases in the carrying amount are included in the profit and loss account. 2.10 Impairment The carrying amounts of the Group’s assets are reviewed at each balance sheet date to determine whether there is any indication of impairment. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount. The impairment loss is charged to the profit and loss account. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. 2.11 Employee share options No compensation cost or obligation is recognised when share options are issued under employee incentive programmes. When the options are exercised, equity is increased by the amount of the proceeds received.
Page 1 and 2: CONTENTS 21 CORPORATE GOVERNANCE 29
Page 3 and 4: RAFFLES MEDICAL GROUP p22 CORPORATE
Page 11 and 12: RAFFLES MEDICAL GROUP p30 DIRECTORS
Page 17 and 18: RAFFLES MEDICAL GROUP p36 STATEMENT
Page 19 and 20: RAFFLES MEDICAL GROUP p38 BALANCE S
Page 21 and 22: RAFFLES MEDICAL GROUP p40 Exchange
Page 23: RAFFLES MEDICAL GROUP p42 NOTES TO
Page 27 and 28: RAFFLES MEDICAL GROUP p46 NOTES TO
Page 53 and 54: RAFFLES MEDICAL GROUP p72 SHAREHOLD
Page 55 and 56: RAFFLES MEDICAL GROUP p74 NOTICE OF
Page 57: Fold this Flap For Sealing Please A

Raffles Insitutep Xpo - Raffles Medical Group

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