Notes to the Financial Statements - Swissco Holdings Limited

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Notes to the Financial Statements For the financial year ended 31 December 2008 2. Significant accounting policies (continued) 2.2 Revenue recognition Sales comprise the fair value of the consideration received or receivable for the rendering of services in the ordinary course of the Group’s activities. Sales are presented net of goods and services tax, rebates and discounts, and after eliminating sales within the Group. (a) Chartering income, sale of out-port-limit services and related income Chartering income is recognised in the income statement on a straight-line basis over the charter hire period. Sale of out-port-limit services and related income is recognised when the services are rendered. (b) Ship repair and related services Revenue from rendering of services for short-term ship repair projects is recognised upon completion of the job as certified by the service engineers. Provision is made in full where applicable for anticipated losses on project in progress. (c) Interest income Interest income is recognised using the effective interest method. (d) Dividend income 2.3 Group accounting Dividend income is recognised when the right to receive payment is established. (a) Subsidiaries Subsidiaries are entities (including special purpose entities) over which the Group has power to govern the financial and operating policies, generally accompanied by a shareholding giving rise to a majority of the voting rights. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether the Group controls another entity. The purchase method of accounting is used to account for the acquisition of subsidiaries except for the subsidiaries acquired by the Company as part of a restructuring exercise on 6 October 2004 from its controlling shareholders. These subsidiaries are Swissco Offshore Pte Ltd, Singapore Marine Logistics Pte Ltd, Swissco Offshore Ltd and Regional Marine Supply Pte Ltd, and they are consolidated using the “pooling of interest” method. Under the pooling of interest method, the results and balance sheet of the Group were presented as if the Group had been in existence prior to 6 October 2004 and the assets and liabilities were brought into the consolidated financial statements at their existing carrying amounts. 44 Swissco International Limited Annual Report 2008
Notes to the Financial Statements For the financial year ended 31 December 2008 2. Significant accounting policies (continued) 2.3 Group accounting (continued) (a) Subsidiaries (continued) Under the purchase method of accounting, the cost of an acquisition is measured as the fair value of the assets given, equity instruments issued or liabilities incurred or assumed at the dates of exchange, plus costs directly attributable to the acquisition. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair value on the date of acquisition, irrespective of the extent of minority interest. Subsidiaries are consolidated from the date on which control is transferred to the Group. They are de-consolidated from the date on which control ceases. In preparing the consolidated financial statements, transactions, balances and unrealised gains on transactions between group entities are eliminated. Unrealised losses are also eliminated but are considered an impairment indicator of the asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group. Please refer to the paragraph “Investments in subsidiaries and associated companies” for the accounting policy on investments in subsidiaries in the separate financial statements of the Company. (b) Associated companies Associated companies are entities over which the Group has significant influence, but not control, generally accompanied by a shareholding giving rise to between and including 20% and 50% of the voting rights. Investments in associated companies are accounted for in the consolidated financial statements using the equity method of accounting less impairment losses. Investments in associated companies in the consolidated balance sheet includes goodwill (net of any accumulated impairment losses) identified on acquisition. Investments in associated companies are initially recognised at cost. The cost of an acquisition is measured at the fair value of the assets given, equity instruments issued or liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the acquisition. In applying the equity method of accounting, the Group’s share of its associated companies’ postacquisition profits or losses is recognised in the income statement and its share of post-acquisition movements in reserves is recognised in equity directly. These post-acquisition movements are adjusted against the carrying amount of the investment. When the Group’s share of losses in an associated company equals or exceeds its interest in the associated company, including any other unsecured non-current receivables, the Group does not recognise further losses, unless it has obligations or has made payments on behalf of the associated company. Unrealised gains on transactions between the Group and its associated companies are eliminated to the extent of the Group’s interest in the associated companies. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of associated companies have been changed where necessary to ensure consistency with the accounting policies adopted by the Group. 45 Swissco International Limited Annual Report 2008
Page 1 and 2: SWISSCO Annual Report 2008 Unleashi
Page 3 and 4: Corporate Profile Swissco Internati
Page 5 and 6: Financial Summary FY2008 FY2007 FY2
Page 7 and 8: OUR Services Offshore Support Servi
Page 9 and 10: SNAPSHOT of our fleet SWISSCO 48 12
Page 11 and 12: Chairman’s Statement Net profit a
Page 13 and 14: Fleet Composition Our fleet has gro
Page 15 and 16: Operations Review borrowings which
Page 17 and 18: Board of Directors Mr Yeo Chong Lin
Page 19 and 20: Key Management Mr Fazil Bin Salleh
Page 21 and 22: 2007 2004 SWISSCO INTERNATIONAL LIM
Page 23 and 24: Corporate Governance Report Swissco
Page 25 and 26: Corporate Governance Report (c) (d)
Page 27 and 28: Corporate Governance Report The RC
Page 29 and 30: Corporate Governance Report For the
Page 31 and 32: Corporate Governance Report Dealing
Page 33 and 34: Directors’ Report For the financi
Page 39 and 40: Statement by Directors For the fina
Page 41 and 42: Consolidated Income Statement For t
Page 43 and 44: Consolidated Statement of Changes i
Page 45: Notes to the Financial Statements F
Page 49 and 50: Notes to the Financial Statements F
Page 73 and 74: Statistics of Shareholdings As at 1
Page 89 and 90: Statistics of Shareholdings As at 1
Page 91 and 92: Notice of Fifth Annual General Meet
Page 93 and 94: Notice of Fifth Annual General Meet
Page 95 and 96: SWISSCO INTERNATIONAL LIMITED Compa
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Corporate Information Board of Dire
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Notes to the Financial Statements - Swissco Holdings Limited

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