Illustrative Financial Statements - Deloitte

1 Illustrative Financial Statements 2017 GAAP Singapore Ltd and its subsidiaries (Registration No. 200001999A) Directors statement and Financial Statements Year ended December 31, 2017 Preface i Scope This publication provides a set of sample Financial Statements of a fictitious group of companies. GAAP Singapore Ltd is a company incorporated in Singapore and its shares are listed on the Main Board of the Singapore Exchange Securities Trading Limited ("SGX-ST"). The names of people and entities included in this publication are fictitious. Any resemblance to a person or entity is purely coincidental. GAAP Singapore Ltd is assumed to have presented its Financial Statements in accordance with Financial Reporting Standards in Singapore ( FRS ) for a number of years. Effective date The Illustrative Financial Statements include the disclosures required by the Singapore Companies Act, SGX-ST Listing Manual, and FRSs and INT FRSs that are issued at the date of publication (August 31, 2017).

2 Illustrative in nature The sample disclosures in this set of Illustrative Financial Statements should not be considered to be the only acceptable form of presentation. The form and content of each reporting entity's Financial Statements are the responsibility of the entity's directors and management, and other forms of presentation which are equally acceptable may be preferred and adopted, provided they include the specific disclosures prescribed in the Singapore Companies Act, SGX-ST Listing Manual, and FRSs and INT FRSs. For the purposes of presenting the statement of profit or loss and other comprehensive income, and statement of cash flows, the various alternatives allowed under FRSs for those Statements have been illustrated. Preparers of Financial Statements should select the alternatives most appropriate to their circumstances. The Illustrative Financial Statements contain general information and are not intended to be a substitute for reading the legislation or accounting standards themselves, or for professional judgement as to adequacy of disclosures and fairness of presentation.

3 They do not encompass all possible disclosures required by the Singapore Companies Act, SGX-ST Listing Manual, and FRSs and INT FRSs. Depending on the circumstances, further specific information may be required in order to ensure fair presentation and compliance with laws and accounting standards and securities exchange regulations in Singapore. Guidance notes Direct references to the source of disclosure requirements are included in the reference column on each page of the Illustrative Financial Statements . Guidance notes are provided where additional matters may need to be considered in relation to a particular disclosure. These notes are inserted within the relevant section or note. The Illustrative Financial Statements are prepared by the Professional Practice Department of Deloitte & Touche LLP in Singapore ( Deloitte Singapore ) for the use of clients and staff and are written in general terms. Accordingly, we recommend that readers seek appropriate professional advice regarding the application of its contents to their specific situations and circumstances.

4 The Illustrative Financial Statements should not be relied on as a substitute for such professional advice. Partners and professional staff of Deloitte Singapore would be pleased to advise you. While all reasonable care has been taken in the preparation of these Illustrative Financial Statements , Deloitte Singapore accepts no responsibility for any errors it might contain, whether caused by negligence or otherwise, or for any loss, howsoever caused, incurred by any person as a result of relying on it. Abbreviations used References are made in this publication to the Singapore Companies Act, Singapore accounting pronouncements, guidelines and SGX-ST listing rules that require a particular disclosure or accounting treatment. The abbreviations used to identify the source of authority are as follows: Alt Alternative App Appendix CA Singapore Companies Act CCG Code of Corporate Governance FRS Financial Reporting Standards in Singapore IAS International Accounting Standards IFRS International Financial Reporting Standards INT FRS Interpretation of Singapore Financial Reporting Standards LM Singapore Exchange Securities Trading (SGX-ST) Listing Manual RAP Recommended Accounting Practice Sch Schedule SSA Singapore Standards on Auditing Summary of key changes from the 2016 version of the Illustrative Financial Statements Illustrative Financial Statements 2017 ii This section covers: an overview of new and revised FRSs that are mandatorily effective for the year ending December 31, 2017; and an overview of new and revised FRSs that are not yet mandatorily effective but allow early application for the year ending December 31, 2017.

5 For this purpose, the discussion below reflects a cut-off date of August 31, 2017. The potential impact of the application of any new and revised FRSs and INT FRSs issued after August 31, 2017 but before the Financial Statements are issued should also be considered and disclosed. Note: Appendix A contains sample disclosures required by FRS on new/revised FRSs, INT FRSs and amendments to FRSs that may be relevant to an entity that were issued but are not effective at the date of authorisation of the Financial Statements . The disclosures are purely for Illustrative purposes and may not be relevant to GAAP Singapore Ltd for the year ended December 31, 2017. Amendments mandatorily effective for the year ending December 31, 2017 The following is a summary of the new and revised FRSs that are mandatorily effective for the annual periods beginning on or after January 1, 2017. Amendments to FRS 7 Statement of Cash Flows: Disclosure Initiative Amendments to FRS 12 Income Taxes: Recognition of Deferred Tax Assets for Unrealised Losses Amendments to FRS 112 Disclosure of Interests in Other Entities: Improvements to FRSs (December 2016) Amendments to FRS 7 Statement of Cash Flows: Disclosure Initiative The amendments require an entity to provide disclosures that enable users of Financial Statements to evaluate changes in liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes.

6 The amendments apply prospectively. Entities are not required to present comparative information for earlier periods when they first apply the amendments. Amendments to FRS 12 Income Taxes: Recognition of Deferred Tax Assets for Unrealised Losses The amendments clarify that unrealised losses on debt instruments measured at fair value in the Financial Statements but at cost for tax purposes can give rise to deductible temporary differences. The amendments also clarify that the carrying amount of an asset does not limit the estimation of probable future taxable profits, and that when comparing deductible temporary differences with future taxable profits, the future taxable profits excludes tax deductions resulting from the reversal of those deductible temporary differences. The amendments apply retrospectively, with certain transition relief. Amendments to FRS 112 Disclosures of Interests in Other Entities: Improvements to FRSs (December 2016) The amendments clarify the scope of FRS 112 by specifying that disclosure requirements in the Standard, except for those in paragraphs B10-B16 (on summarised Financial information), apply to any interests that are classified as held for sale, held for distribution to owners or discounted operations in accordance with FRS 105 Non-current Assets Held for Sale and Discontinued Operations.

7 The amendments apply retrospectively. Summary of key changes from the 2016 version of the Illustrative Financial Statements iii Not yet mandatorily effective but early application allowed for the year ending December 31, 2017 The following is a summary of the new and revised FRSs that are not yet mandatorily effective for the year ending December 31, 2017 but early application is allowed. FRS 109 Financial Instruments FRS 115 Revenue from Contracts with Customers (with clarifications issued) FRS 116 Leases Amendments to FRS 110 Consolidated Financial Statements and FRS 28 Investments in Associates and Joint Ventures: Sale or Contribution of Assets between an Investor and its Associate or Joint Venture Amendments to FRS 102 Share-based Payment: Classification and Measurement of Share-based Payment Transactions Amendments to FRS 40 investment property : Transfers of investment property Amendments to FRS 104 Insurance Contracts: Applying FRS 109 Financial Instruments with FRS 104 Insurance Contracts Improvements to FRSs (December 2016) INT FRS 122 Foreign Currency Transactions and Advance Consideration Guidance notes See Appendix A for the Illustrative disclosures on the effects of the above new FRSs, INT FRSs and amendments to FRS that are issued but not effective at the date of authorisation of Financial Statements .

8 The list is updated up to August 31, 2017. Content Directors' statement 1 Independent auditor s report 9 Statements of Financial position 16 Consolidated statement of profit or loss and other comprehensive income Alt 1 Consolidated statement of profit or loss and other comprehensive income 22 Alt 2 Consolidated statement of profit or loss 26 Alt 2 Consolidated statement of profit or loss and other comprehensive income 28 Statements of changes in equity 34 Consolidated statement of cash flows Alt 1 Direct method of reporting cash flows from operating activities 38 Alt 2 Indirect method of reporting cash flows from operating activities 40 Notes to Financial Statements 44 Appendices to Illustrative Financial Statements Appendix A Guidance on Financial Statements disclosures: Sample disclosures on FRSs in issue at date of authorisation of the Financial Statements but not yet effective 225 Index to the notes to Financial Statements 1.

9 General 044 2. Summary of significant accounting policies 045 3. Critical accounting judgements and key sources of estimation uncertainty 077 4. Financial instruments, Financial risks and capital management 081 5. Holding company and related company transactions 108 6. Other related party transactions 110 7. Cash and cash equivalents 115 8. Trade and other receivables 116 9. Construction contracts 120 10. Finance lease receivables 121 11. Held for trading investments 122 12. Held-to-maturity Financial assets (current) 123 13. Derivative Financial instruments 124 14. Inventories 128 15. Assets classified as held for sale 129 16. property , plant and equipment 130 17. investment property 135 18. Goodwill 139 19. Other intangible assets 141 20. Subsidiaries 142 21. Associates 149 22. Joint venture 155 23. Available-for-sale investments 159 24. Other Financial assets at fair value through profit or loss 160 25. Held-to-maturity Financial assets (non-current) 160 26.

10 Deferred tax 161 27. Bank overdrafts and loans 165 28. Trade and other payables 167 29. Finance leases 169 30. Provisions 170 31. Convertible loan notes 172 32. Retirement benefit obligations 173 33. Share-based payments 180 Index to the notes to Financial Statements 34. Share capital 183 35. Treasury shares 184 36. Capital reserves 184 37. Revaluation reserves 185 38. Hedging and translation reserves 186 39. Components of other comprehensive income 187 40. Revenue 188 41. Segment information 189 42. investment revenue 196 43. Other gains and losses 197 44. Finance costs 198 45. Income tax expense 199 46. Discontinued operation 203 47. Profit for the year 204 48. Dividends 208 49. Earnings per share 208 50. Disposal of subsidiary 212 51. Acquisition of subsidiary 214 52. Non-cash transactions 221 53. Contingent liabilities 221 54. Commitments 222 55. Operating lease arrangements 222 56. Events after the reporting period 224 57. Reclassifications and comparative figures 224 Directors statement Source GAAP Singapore Ltd and its subsidiaries Directors statement 1 CA 201(16) The directors present their statement together with the audited consolidated Financial Statements of the group and statement of Financial position and statement of changes in equity of the company for the Financial year ended December 31, 2017.