52
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2014
These notes form an integral part of and should be read in conjunction with the accompanying financial
statements.
The financial statements of the Group and the Company for the financial year ended 31 December 2014
were authorised for issue in accordance with a resolution of directors on 31 March 2015.
1.
General information
Mencast Holdings Ltd (the “Company”) is listed on the Singapore Exchange and incorporated and
domiciled in Singapore. The address of its registered office is 42E Penjuru Road, Mencast Central,
Singapore 609161.
The principal activity of the Company is that of investment holding. The principal activities of the
subsidiaries are disclosed in Note 16 to the financial statements.
2.
Significant accounting policies
2.1 Basis of preparation
These financial 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 financial 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 significant to the financial
statements, are disclosed in Note 3.
Interpretations and amendments to published standards effective in 2014
On 1 January 2014, the Group adopted the new or amended FRS and Interpretations to FRS (“INT
FRS”) that are mandatory for application for the financial 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 the Company and had no material effect on the amounts
reported for the current or prior financial years except for the following:
FRS 112 Disclosures of Interests in Other Entities
The Group has adopted the above new FRS on 1 January 2014. The amendment is applicable
for annual periods beginning on or after 1 January 2014. It sets out the required disclosures for
entities reporting under the new FRS 110
Consolidated Financial Statements
and FRS 111
Joint
Arrangements
, and replaces the disclosure requirements currently found in FRS 27 (revised 2011)
Separate Financial Statements
and FRS 28 (revised 2011)
Investments in Associates and Joint
Ventures
.
The Group has applied FRS 112 retrospectively in accordance with the transitional provisions (as
amended subsequent to the issuance of FRS 112 in September 2011) in FRS 112 and amended for
consolidation exceptions for ‘investment entity’ from 1 January 2014. The Group has incorporated
the additional required disclosures into the financial statements.
2.2 Revenue recognition
Revenue comprises the fair value of the consideration received or receivable for the sale of goods
and rendering of services in the ordinary course of the Group’s activities. Revenue is presented, net
of goods and services tax, rebates and discounts, and after eliminating sales within the Group.
