Annual Report 2012 - singapore land limited

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Singapore Land Limited - Annual Report 2012
NOTES TO THE FINANCIAL STATEMENTS
For the fi nancial year ended 31 December 2012
These notes form an integral part of and should be read in conjunction with the accompanying fi nancial statements.
1. GENERAL INFORMATION
Singapore Land Limited (the “Company”) is incorporated and domiciled in Singapore. The address of its registered
offi ce is 24 Raffl es Place #22-01/06, Clifford Centre, Singapore 048621.
The Company is listed on the Singapore Exchange.
The principal activity of the Company is that of an investment holding company. The principal activities of the Group
consist of development of properties for investment and trading, investment holding, property management, and
investment in hotels and retail centres.
2. SIGNIFICANT ACCOUNTING POLICIES
2.1 Basis of preparation
The fi nancial statements have been prepared in accordance with Singapore Financial Reporting Standards (“FRS”)
under the historical cost convention, except as disclosed in the accounting policies below.
The preparation of fi nancial statements in conformity with FRS requires management to exercise its judgement
in the process of applying the Group’s accounting policies. It also requires the use of certain critical accounting
estimates and assumptions. The areas involving a higher degree of judgement or complexity, or areas where
assumptions and estimates are signifi cant to the fi nancial statements, are disclosed in note 3.
Interpretations and amendments to published standards effective in 2012
On 1 January 2012, the Group adopted the new or amended FRS and Interpretations to FRS (“INT FRS”) that are
mandatory for application for the fi nancial year. Changes to the Group’s accounting policies have been made as
required, in accordance with the transitional provisions in the respective FRS and INT FRS.
The adoption of these new or amended FRS and INT FRS did not result in substantial changes to the accounting
policies of the Group and Company and had no effect on the amounts reported for the current or prior fi nancial
years, except as disclosed below.
The Group has adopted the amendments to FRS 12 Deferred Tax: Recovery of Underlying Assets on 1 January
2012. The amended FRS 12 has introduced a presumption that an investment property measured at fair value is
recovered entirely by sale. The amendment, effective for annual periods beginning on or after 1 January 2012,
is to be applied retrospectively.
Previously, the Group accounted for deferred tax on fair value gains on investment property on the basis that the
asset would be recovered through use. Upon adoption of the amendment, such deferred tax is measured on the
basis of recovery through sale.