Untitled - Swissco Holdings Limited

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NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 December 2005 2. Significant Accounting Policies (continued) (c) Group accounting (continued) (ii) Associated companies Associated companies are entities over which the Group has significant influence, but not control, generally accompanying a shareholding of 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. Investments in associated companies in the consolidated balance sheet include goodwill (net of accumulated amortisation) identified on acquisition, where applicable. Please refer to Note 2(d) for the Group’s accounting policy on goodwill. Equity accounting involves recording investments in associated companies initially at cost, and recognising the Group’s share of associated companies’ post-acquisition results and its share of post-acquisition movements in reserves against the carrying amount of the investments. When the Group’s share of losses in an associated company equals or exceeds its interest in the associated company, including any other unsecured receivables, the Group does not recognise further losses, unless it has incurred obligations or made payments on behalf of the associated company. In applying the equity method of accounting, 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. Where necessary, adjustments are made to the financial statements of associated companies to ensure consistency of accounting policies with those of the Group. Please refer to Note 2(f) for the Company’s accounting policy on investments in associated companies. (iii) Transaction costs Costs directly attributable to an acquisition are included as part of the cost of acquisition. (d) Goodwill Goodwill represents the excess of the cost of an acquisition of subsidiaries or associated companies over the fair value at the date of acquisition of the Group’s share of their identifiable net assets. Goodwill recognised as intangible assets is tested at least annually for impairment and carried at cost less accumulated impairment losses. 34
NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 December 2005 2. Significant Accounting Policies (continued) (e) Property, plant and equipment All property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses. Depreciation of property, plant and equipment is calculated using the straight-line method to allocate their depreciable amounts over their estimated useful lives. The estimated useful lives are as follows: Useful lives Vessels/barges Leasehold buildings Motor vehicles Furniture, fittings and computers Plant and equipment 15 years the shorter of 50 years or the lease term 5 years 3 – 10 years 5 years No depreciation is provided on vessels-in-construction. The useful lives of property, plant and equipment are reviewed, and adjusted as appropriate, at each balance sheet date. Subsequent expenditure relating to property, plant and equipment that has already been recognised is added to the carrying amount of the asset when it is probable that future economic benefits, in excess of the originally assessed standard of performance of the asset between the expenditure was made, will flow to the Group and the cost can be reliably measured. Other subsequent expenditure is recognised as an expense during the financial year in which it is incurred. Where an indication of impairment exists, the carrying amount of the asset is assessed and written down immediately to its recoverable amount. On disposal of an item of property, plant and equipment, the difference between the net disposal proceeds and its carrying amounts are taken to the income statement. (f) Investments in subsidiaries and associated companies Investments in subsidiaries and associated companies are stated at cost less accumulated impairment losses in the Company’s balance sheet. On disposal of investments in subsidiaries and associated companies, the difference between net disposal proceeds and its carrying amount is taken to the income statement. 35
Page 2 and 3: CORPORATE MILESTONES 1970 Sea Well
Page 4 and 5: CHAIRMAN’S STATEMENT Dear Fellow
Page 6 and 7: CORPORATE PROFILE Our Customers •
Page 8 and 9: OUR HISTORY It started back in 1970
Page 10 and 11: BOARD OF DIRECTORS Mr Phillip Chan
Page 12 and 13: KEY MANAGEMENT Mr E K Lim Mr Koh Ba
Page 14 and 15: CORPORATE STRUCTURE Swissco Interna
Page 16 and 17: OUR VESSELS Swissco Star Swissco 48
Page 18 and 19: Corporate Governance Report 17 Dire
Page 20 and 21: Corporate Governance Report Remuner
Page 22 and 23: DIRECTORS’ REPORT The directors p
Page 24 and 25: DIRECTORS’ REPORT Share Options (
Page 26 and 27: DIRECTORS’ REPORT Audit Committee
Page 28 and 29: AUDITORS’ REPORT To The Members o
Page 30 and 31: BALANCE SHEETS As at 31 December 20
Page 32 and 33: CONSOLIDATED CASH FLOW STATEMENT Fo
Page 34 and 35: NOTES TO THE FINANCIAL STATEMENTS F
Page 74 and 75: STATISTICS OF SHAREHOLDINGS As at 2
Page 76 and 77: NOTICE OF SECOND ANNUAL GENERAL MEE
Page 84 and 85: This page is left blank intentional
Page 86 and 87:
NOTES 1. A member entitled to atten
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Untitled - Swissco Holdings Limited

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