Illustrative Financial Statements 2011 - bdo singapore

ABC SINGAPORE LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2011 (Continued)
FRS 1: 112, 117
2. Summary of significant accounting policies (Continued)
2.1 Basis of preparation (Continued)
FRS 8: 30
Consequential amendments were also made to various standards as a result of these
new/revised standards.
With the exception of the Amendments to FRS 12 Deferred tax: Recovery of underlying
assets which the Group has early adopted, the management anticipates that the adoption
of the above FRS and INT FRS in future periods will not have a material impact on the
financial statements of the Group in the period of their initial adoption.
FRS 12 Amendments to FRS 12 Deferred tax: Recovery of Underlying assets
The Group has early adopted the amendment on 1 January 2011. The amendment
introduced a rebuttable presumption that an investment property measured at fair value
is recovered entirely through sale and the presumption can only be rebutted if the
investment property is depreciable and is held within a business model whose objective is
to consume substantially all of the economic benefits embodied in the investment
property over time, rather than through sale. The amendment is applicable
retrospectively to annual periods beginning on or after 1 January 2012 with early adoption
permitted.
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.
The effects on adoption are as follows:
Consolidated statement of financial position
Increase/(Decrease)
At
31 December
2011
At
31 December
2010
At
1 January
2010
$’000 $’000 $’000
Deferred income tax liabilities
Retained profits
Profit or loss for the financial year
ended 31 December
Increase/(Decrease)
2011 2010
$’000 $’000
Income tax expense
Profit attributable to:
Equity holders of the Company
Non-controlling interest
The adoption of amended FRS 12 does not have any material impact on the basic and
diluted EPS of the Group.
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