Annual Report 2012 - ecoWise Holdings Limited

62ecoWise Holdings Limitedannual report 201231 OCTOBER 2012NOTES TO THE FINANCIAL STATEMENTS2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)Basis of PresentationThe consolidated financial statements include the financial statements of the Company and all its directly andindirectly controlled subsidiaries made up to the end of the reporting year. Consolidated financial statementsare the financial statements of the Group presented as those of a single economic entity. The consolidatedfinancial statements are prepared using uniform accounting policies for like transactions and other eventsin similar circumstances. All significant intra-group balances and transactions, including income, expensesand dividends are eliminated in full upon consolidation. The results of any subsidiary acquired or disposedoff during the reporting year are accounted for from the respective dates of acquisition or up to the date ofdisposal, which is the date on which effective control is obtained of the acquired business until that controlceases. Upon disposal, the attributable amount of goodwill, if any, is included in the determination of thegain or loss on disposal.Changes in the Group’s equity interests in a subsidiary that do not result in the loss of control are accountedfor within equity as transactions with owners in their capacity as owners. The carrying amounts of the Group’sand non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiary.When the Group ceases to control a subsidiary, it derecognises the assets and liabilities and related equitycomponents of the former subsidiary. Any gain or loss is recognised in profit or loss. Any investment retainedin the former subsidiary is measured at its fair value at the date when control has ceased and is subsequentlyaccounted for as an associate, joint venture or financial asset.An investment in associate is accounted for in the consolidated financial statements using the equity method.The Company’s financial statements have been prepared on the same basis, and as permitted by theSingapore Companies Act, Chapter 50, no statement of comprehensive income is presented for theCompany.Foreign Currency TransactionsThe functional currency of the Company is the Singapore dollar as it reflects the primary economicenvironment in which the Company operates in.Transactions in foreign currencies are recorded in the functional currency at the exchange rates ruling atthe dates of the transactions. At the end of each reporting year, recorded monetary balances and balancesmeasured at fair value that are denominated in non-functional currencies are reported at the exchangerates ruling at the end of the reporting year and fair value dates, respectively. All realised and unrealisedexchange adjustment gains and losses are dealt with in the profit or loss, except when recognised in othercomprehensive income.The presentation currency is the functional currency.