Deloitte IFRS 2018 PDF

Illustrative Financial Statements
2018
GAAP Singapore Ltd
and its subsidiaries
(Registration No. 200001999A)
Directors’ statement and

financial statements
Year ended December 31, 2018

Preface
Scope Illustrative in nature
This publication provides a set of sample financial The sample disclosures in this set of illustrative
statements of a fictitious group of companies. GAAP financial statements should not be considered to be
Singapore Ltd is a company incorporated in Singapore the only acceptable form of presentation. The form
and its shares are listed on the Main Board of the and content of each reporting entity’s financial
Singapore Exchange Securities Trading Limited statements are the responsibility of the entity’s
("SGX-ST"). The names of people and entities directors and management, and other forms of
included in this publication are fictitious. Any presentation which are equally acceptable may be
resemblance to a person or entity is purely preferred and adopted, provided they include the
coincidental. specific disclosures prescribed in the Singapore
Companies Act, SGX-ST Listing Manual, SFRS(I)s and
GAAP Singapore Ltd presented its consolidated SFRS(I) INTs.
financial statements in accordance with Financial
Reporting Standards in Singapore (“FRS”) for a For the purposes of presenting the statement of profit
number of years up to and including December 31, or loss and other comprehensive income, and
2017. statement of cash flows, the various alternatives
allowed under SFRS(I)s for those statements have
In December 2017, the Accounting Standards Council been illustrated. Preparers of financial statements
(ASC) issued a new financial reporting framework - should select the alternatives most appropriate to
Singapore Financial Reporting Standards their circumstances.
(International) (“SFRS(I)”), which is to be adopted by
GAAP Singapore Ltd, for annual periods beginning on The illustrative financial statements contain general
or after January 1, 2018. SFRS(I) is identical to the information and are not intended to be a substitute
International Financial Reporting Standards (“IFRS”) for reading the legislation or accounting standards
as issued by the International Accounting Standards themselves, or for professional judgement as to
Board (IASB). adequacy of disclosures and fairness of presentation.
They do not encompass all possible disclosures
GAAP Singapore Ltd applied SFRS(I) 1 First-time required by the Singapore Companies Act, SGX-ST
Adoption of Singapore Financial Reporting Standards Listing Manual, SFRS(I)s and SFRS(I) INTs.
(International) in its first set of SFRS(I) financial Depending on the circumstances, further specific
statements for financial year ending December 31, information may be required in order to ensure fair
2018. presentation and compliance with laws and
accounting standards and securities exchange
Effective date regulations in Singapore.
The illustrative financial statements include the

disclosures required by the Singapore Companies Act,
SGX-ST Listing Manual, and SFRS(I)s and SFRS(I)
Interpretations (“SFRS(I) INTs”) that are issued at
the date of publication (September 30, 2018).
Standards issued, but not yet effective, as at

December 31, 2018 have not been early adopted in
these illustrative financial statements.
i
Preface
Guidance notes Abbreviations used
Direct references to the source of disclosure References are made in this publication to the
requirements are included in the reference column on Singapore Companies Act, Singapore accounting
each page of the illustrative financial statements. pronouncements, guidelines and SGX-ST listing rules
Guidance notes are provided where additional that require a particular disclosure or accounting
matters may need to be considered in relation to a treatment. The abbreviations used to identify the
particular disclosure. These notes are inserted within source of authority are as follows:
the relevant section or note.
Alt Alternative
The illustrative financial statements are prepared by App Appendix
the Professional Practice Department of Deloitte & CA Singapore Companies Act
Touche LLP in Singapore (“Deloitte Singapore”) for CCG Code of Corporate Governance
the use of clients and staff and are written in general FRS Financial Reporting Standards in
terms. Accordingly, we recommend that readers seek Singapore
appropriate professional advice regarding the IAS International Accounting Standards
application of its contents to their specific situations IFRIC Interpretation of International
Financial Reporting Standards
and circumstances. The illustrative financial
IFRS International Financial Reporting
statements should not be relied on as a substitute for
Standards
such professional advice. Partners and professional
INT FRS Interpretation of Financial Reporting
staff of Deloitte Singapore would be pleased to advise
Standards
you. While all reasonable care has been taken in the
LM Singapore Exchange Securities Trading
preparation of these illustrative financial statements,
(SGX-ST) Listing Manual
Deloitte Singapore accepts no responsibility for any RAP Recommended Accounting Practice
errors it might contain, whether caused by negligence Sch Schedule
or otherwise, or for any loss, howsoever caused, SFRS(I) Singapore Financial Reporting
incurred by any person as a result of relying on it. Standards (International)
SFRS(I) INT Interpretation of Singapore Financial
Reporting Standards (International)
SSA Singapore Standards on Auditing
Illustrative Financial Statements 2018 ii

Summary of key changes
from the 2017 version of the
Illustrative Financial
Statements
On January, 1, 2018, GAAP Singapore Ltd group adopted the new SFRS(I) framework for the first time for financial
year ending December 31, 2018 and SFRS(I) 1 First-time Adoption of Singapore Financial Reporting Standards
(International) is applied in its first set of SFRS(I) financial statements.
As a first-time adopter, GAAP Singapore Ltd group is required to apply retrospectively, accounting policies based on
each SFRS(I) effective as at end of the first SFRS(I) reporting period (December 31, 2018), except for areas of
exceptions and optional exemptions set out in SFRS(I) 1. In the first set of SFRS(I) financial statements for the
financial year ending December 31, 2018, an additional opening statement of financial position as at date of transition
(January 1, 2017) is presented, together with related notes.
Reconciliation statements from previously reported FRS amounts and explanatory notes on transition adjustments
are required for equity as at date of transition (January 1, 2017) and as at end of last financial period under FRS
(December 31, 2017), and for total comprehensive income and cash flows reported for the last financial period under
FRS (for the year ended December 31, 2017). Additional disclosures may also be required for specific transition
adjustments if applicable.
These illustrative financial statements assume there is no change to the group’s and the company’s previous
accounting policies under FRS or material adjustments on the initial transition to the new framework, other than those
arising from the application of SFRS(I) 9 and SFRS(I) 15 which are effective at the same time. GAAP Singapore Ltd
has elected to apply certain exemptions allowed under SFRS(I) 1. Details of first-time adoption of SFRS(I) are included
in Note 58.
Note: A first-time adopter of SFRS(I) does not apply the SFRS(I) 1-8 Accounting Policies, Changes in Accounting
Estimate and Errors requirements to changes in accounting policies that occur when an entity first adopts SFRS(I).
The following is the list of SFRS(I)s which are identical to the new and revised IFRS pronouncements issued by the
IASB that are mandatorily effective for the annual period beginning on or after January 1, 2018.
 SFRS(I) 1-28 Investments in Associates and Joint Ventures: Measuring investees at fair value through profit or
loss on an investment-by-investment basis
 SFRS(I) 1-40 Investment Property: Transfers of Investment Property
 SFRS(I) 2 Share-based Payment: Classification and Measurement of Share-based Payment Transactions
 SFRS(I) 4 Insurance Contracts: Applying SFRS(I) 9 Financial Instruments with SFRS(I) 4 Insurance Contracts
 SFRS(I) 9 Financial Instruments
 SFRS(I) 15 Revenue from Contracts with Customers
 SFRS(I) INT 22 Foreign Currency Transactions and Advance Consideration
These illustrative financial statements assume there is no impact to the accounting policies, presentation and
disclosures arising from the implementation of the above SFRS(I)s other than SFRS(I) 9 and SFRS(I) 15. GAAP
Singapore Ltd group has not elected the exemptions under SFRS(I) 1 which are available for SFRS(I) 9 and SFRS(I)
15. Accordingly, the new requirements under SFRS(I) 9 and SFRS(I) 15 are applied retrospectively.
iii
Statements
Application of SFRS(I) 9
 The accounting policies under SFRS(I) 9 are illustrated in Note 2.4.
 Reclassification of financial assets and financial liabilities into the SFRS(I) 9 categories has had no overall impact
on their respective measurement bases. The only impact relates to the presentation of fair value changes on
equity investments classified as fair value through other comprehensive income (FVTOCI) as ‘amounts that will
not be subsequently reclassified to profit or loss’ whereas under FRS 39 they would be subsequently reclassified
to profit or loss.
 Additional loss allowance is recognised for financial assets and other items within the impairment scope of
SFRS(I) 9. Comparative figures have been restated accordingly. Enhanced disclosures have been made with
respect to the overview of the group’s exposure to credit risk and credit risk management. Refer to Notes
4(c)(iv), 4(c)(v), 8, 9, 11, 13 and 25 for further details.
 All existing hedging relationships are assumed to qualify as continuing hedging relationships and continue to
be effective.
 The impact of SFRS(I) 9 on GAAP Singapore Ltd group is disclosed in Note 58.
Application of SFRS(I) 15
 The accounting policies under SFRS(I) 15 are illustrated in Note 2.18.
 These illustrative financial statements include various amendments as a result of SFRS(I) 15 which are
immaterial to users of the financial statements. In practice, entities may not want to restate for such
amendments. However, they are included in these illustrative financial statements in order to illustrate how
such amendments would be presented and also to highlight the potential impact on the financial statements of
the application of SFRS(I) 15. The impact of SFRS(I) 15 on GAAP Singapore Ltd group is disclosed in Note 58.
 As a result of the adoption of SFRS(I) 15, the disclosures previously required under FRS 11 Construction
Contracts included in Note 9 Amounts due from (to) contract customers in the 2017 Disclosures are no longer
required. The balance previously included as an amount due from contract customers in Note 9 has been
reclassified as a contract asset and Note 9 now contains the disclosures around contract asset balances that
are required by SFRS(I) 15. The previous balance “amount due to contract customers” has been reclassified as
a contract liability balance within a new contract liability note, Note 29. Contract costs has also been added in
Note 10 to disclose costs to obtain construction contracts that meet the criteria for capitalisation in SFRS(I) 15,
and which were previously expensed. A refund liability relating to customers’ right to return products has been
recognised and included in Note 30. Consequently, a right to returned goods asset representing the group’s
right to recover products from customers where customers exercise their right of return has also been
recognised and included in Note 16.
 SFRS(I) 15.118 contains a requirement to explain the significant changes in the contract asset and contract
liability balances during the reporting period. While there is no significant movement on these balances in the
context of the illustrative financial statements, a guidance note has been included on this requirement.
 Contract asset arising from the application of SFRS(I) 15 is assessed for impairment in accordance with SFRS(I)
9. The impairment of contract asset is measured, presented and disclosed on the same basis as a financial
asset that is within the scope of SFRS(I) 9.
 Enhanced disclosures have been made with respect to the disaggregation of the group’s revenue. Refer to Note
42 for further details.
Illustrative Financial Statements 2018 iv

Statements
Guidance notes
1. Discussions about the application of SFRS(I) 9 and SFRS(I) 15 are ongoing. Market practice has yet to be
developed and will no doubt evolve over time. Depending on the specific facts and circumstances of each
entity, the nature and extent of the disclosures will vary from those presented in these illustrative financial
statements, which were created based on a set of presumed facts applicable to GAAP Singapore Ltd group for
illustrative purposes.
2. SFRS(I) 1.E1 provides exemption from the requirement to restate comparative information for SFRS(I) 9
(including disclosures in SFRS(I) 7 Financial Instruments: Disclosures, to the extent that the disclosures relate
to SFRS(I) 9) in the first set of SFRS(I) financial statements.
If an entity chooses to apply the exemption and hence does not restate comparative information in the year
of the initial application, the following points are relevant:
 Comparative information for prior periods will not be restated. The classification and measurement
requirements previously applied in accordance with FRS 39 and disclosures made in accordance with
FRS 107 will be retained.
 The entity should disclose accounting policies for both periods: one applying SFRS(I) 9 (current period)
and another for applying FRS 39 (prior periods).
 Any difference between the previous carrying amounts and the carrying amounts at the beginning of
the annual reporting period that includes the date of initial application will be recognised in the opening
retained earnings (or other component of equity, as appropriate).
 The statement of financial position as at the beginning of the earliest comparative period would not be
restated for the effects of SFRS(I) 9.
v
Content
Directors’ statement 1
Independent auditor’s report 8
Statements of financial position 17
Consolidated statement of profit or loss and other comprehensive income
Alt 1 – Consolidated statement of profit or loss and other comprehensive income 23
Alt 2 – Consolidated statement of profit or loss 27
Alt 2 – Consolidated statement of profit or loss and other comprehensive income 29
Statements of changes in equity 34
Consolidated statement of cash flows
Alt 1 – Direct method of reporting cash flows from operating activities 37
Alt 2 – Indirect method of reporting cash flows from operating activities 39
Notes to financial statements 42

Index to the notes to
1. General 42
2. Summary of significant accounting policies 042
3. Critical accounting judgements and key sources of estimation uncertainty 069
4. Financial instruments, financial risks and capital management 074
5. Holding company and related company transactions 108
6. Other related party transactions 109
7. Cash and cash equivalents 112
8. Trade and other receivables 113
9. Contract assets 118
10. Contract costs 119
11. Finance lease receivables 120
12. Financial assets at fair value through profit or loss 121
13. Other financial assets at amortised cost 122
14. Derivative financial instruments 123
15. Inventories 129
16. Right to returned goods asset 129
17. Assets classified as held for sale 130
18. Property, plant and equipment 131
19. Investment property 135
20. Goodwill 138
21. Other intangible assets 140
22. Subsidiaries 141
23. Associates 146
24. Joint venture 150
25. Financial assets at fair value through other comprehensive income 153
26. Deferred tax 155
27. Bank overdrafts and loans 159
28. Trade and other payables 162
29. Contract liabilities 164
30. Refund liabilities 165
31. Finance leases 165
32. Provisions 166
33. Convertible loan notes 167
34. Retirement benefit obligations 168
35. Share-based payments 174
Index to the notes to
36. Share capital 176

37. Treasury shares 177
38. Capital reserves 177
39. Revaluation reserves 178
40. Hedging and translation reserves 179
41. Components of other comprehensive income 181
42. Revenue 182
43. Segment information 184
44. Investment revenue 190
45. Other gains and losses 191
46. Finance costs 192
47. Income tax expense 193
48. Discontinued operation 196
49. Profit for the year 197
50. Dividends 200
51. Earnings per share 200
52. Disposal of subsidiary 203
53. Acquisition of subsidiary 205
54. Non-cash transactions 210
55. Contingent liabilities 210
56. Commitments 211
57. Operating lease arrangements 211
58. Adoption of a new financial reporting framework 213
59. Events after the reporting period 223
60. Reclassifications and comparative figures (other than arising from first-time adoption) 224
61. Standards issued but not effective 224
Directors’ statement
Source
GAAP Singapore Ltd and its subsidiaries

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, 2018.(1)
CA Sch(12) In the opinion of the directors(2), the consolidated financial statements of the group and the statement of financial position
CA Sch(12)(1)(a) and statement of changes in equity of the company as set out on pages 17 to 227 are drawn up so as to give a true and fair
CA Sch(12)(1)(b) view of the financial position of the group and of the company as at December 31, 2018, and the financial performance,
changes in equity and cash flows of the group and changes in equity of the company for the financial year then ende d and
at the date of this statement, there are reasonable grounds to believe that the company will be able to pay its debts when
they fall due.
CA Sch(12)(7) 1 Directors(3)
The directors of the company in office at the date of this statement are:
Ang Boey Chwee

Desmond Ee Fong Guan
Heng Ing Jong
Kenneth Lim Meng Nam (Appointed on July 11, 2018)
Ooi Puay Quan (Appointed on September 7, 2018)
Raymond See Teoh Ung (Appointed on November 6, 2018)
Vanessa Wong Xiao Ying (Alternate to Ang Boey Chwee and appointed on
January 3, 2018)
CA Sch(12)(8)(a) 2 Arrangements to enable directors to acquire benefits by means of the acquisition of shares and debentures
CA Sch(12)(8)(b)
Neither at the end of the financial year nor at any time during the financial year did there subsist any arrangement whose
object is to enable the directors of the company to acquire benefits by means of the acquisition of shares or debentures in
the company or any other body corporate, except for the options mentioned in paragraph 4 of the Directors’ statement.
1
Source

CA Sch(12)(9)(a) 3 Directors’ interests in shares and debentures(4)

CA Sch(12)(9)(b)
CA 164 The directors of the company holding office at the end of the financial year had no interests in the share capital and
debentures of the company and related corporations as recorded in the register of directors’ shareholdings kept by the
company under section 164 of the Singapore Companies Act except as follows:
Name of directors and companies Shareholdings registered Shareholdings in which directors

in which interests are held in name of director are deemed to have an interest
At beginning At beginning
of year or date of year or date
of appointment, At end of appointment, At end
if later of year if later of year
GAAP Singapore Ltd

(Ordinary shares)
Ang Boey Chwee 40,000,000 50,000,000 250,000 250,000
Kenneth Lim Meng Nam 100,000 575,000 - -
Raymond See Teoh Ung - 25,000 - -
GAAP Holdings Ltd

(Ordinary shares)
Ang Boey Chwee 10,000 10,000 - -
GAAP Pacific Inc.

(Ordinary shares)
Raymond See Teoh Ung 1,000 1,000 - -
CA 7 By virtue of section 7 of the Singapore Companies Act, Mr Ang Boey Chwee is deemed to have an interest in all the related
CA 164 corporations of the company.
LM 1207(7) The directors’ interests in the shares and options of the company at January 21, 2019 were the same at December 31, 2018.
Illustrative Financial Statements 2018 2

Source

CA Sch(12)(4) 4 Share options(5)
(a) Options to take up unissued shares
LM 843(3) The Employee Share Option Scheme (the “Scheme”) in respect of unissued ordinary shares in the company was approved
by the shareholders of the company at an Extraordinary General Meeting held on March 15, 2012.
LM 852(1)(a) The scheme is administered by the Remuneration and Share Options Committee whose members are:
Heng Ing Jong (Chairman)

Kenneth Lim Meng Nam
Ooi Puay Quan
LM 849 Mr Kenneth Lim Meng Nam did not participate in any deliberation or decision in respect of the options granted to him.
CA Sch(12)(2)(c) Under the Scheme, options granted to the directors and employees may, except in certain special circumstances,
CA Sch(12)(5) be exercised at any time after two years but no later than the expiry date. The ordinary shares of the company (“Shares”)
CA Sch(12)(6) under option may be exercised in full or in respect of 100 Shares or a multiple thereof, on the payment of the exercise price.
LM 852(1)(d)
The exercise price is based on the average of closing prices of the Shares on the Singapore Exchange Securities Trading
LM 852(2)
LM 845(5) Limited for the three market days immediately preceding the date of grant. The Remuneration and Share Options Committee
may at its discretion fix the exercise price at a discount not exceeding 20 percent to the above price. No options have been
granted at a discount.
LM 845(1) (b) Unissued shares under option and options exercised

CA Sch(12)(2)(a)
CA Sch(12)(2)(b) The number of Shares available under the Scheme shall not exceed 15% of the issued share capital of the company.
CA Sch(12)(5) The number of outstanding share options under the Scheme are as follows:
CA Sch(12)(6)
Number of options to subscribe for ordinary shares of the company
Date of grant Balance at Granted Exercised Cancelled/ Outstanding at Exercise Exercisable period
January 1, Lapsed December 31, price
2018 2018 per share
July 1, 2015 2,500,000 - (650,000) (61,000) 1,789,000 $4.45 July 1, 2017 to

June 30, 2019
June 30, 2017 1,000,000 - - - 1,000,000 $4.22 July 1, 2019 to

June 30, 2021
December 31, 2017 1,000,000 - - - 1,000,000 $4.22 January 1, 2020 to

December 31, 2022
March 31, 2018 - 250,000 - - 250,000 $4.85 April 1, 2020 to

March 31, 2022
June 30, 2018 - 1,150,000 - - 1,150,000 $4.35 July 1, 2020 to

June 30, 2022
October 31, 2018 - 300,000 - - 300,000 $4.84 November 1, 2020 to

October 31, 2022
Total 4,500,000 1,700,000 (650,000) (61,000) 5,489,000
3
Source

CA Sch(12)(3) Particulars of the options granted in 2015 and 2017 under the Scheme were set out in the Directors’ statement for the
financial year ended December 31, 2015 and December 31, 2017 respectively.
LM 852(1)(c)(ii) In respect of options granted to employees of related corporations, a total of 920,000 options were granted during the
financial year, making it a total of 2,085,000 options granted to employees of related corporations from the commencement
of the Scheme to the end of the financial year.
CA Sch(12)(2)(d) Holders of the above share options have no right to participate in any share issues of any other company. No emplo yee or
LM 852(1)(b)(iii) employee of related corporations has received 5% or more of the total options available under this Scheme.
LM 852(2)
LM 852(1)(b)(ii) There are no options granted to any of the company’s controlling shareholders or their associates (as defined in the Singapore
LM 852(2) Exchange Securities Trading Listing Manual).
LM 852(1)(b)(i) The information on directors of the company participating in the Scheme is as follows:
Name of director Options Aggregate Aggregate Aggregate Aggregate

granted during options options options options
the financial granted since exercised since lapsed since outstanding as
year commencement commencement commencement at the end of
of the Scheme of the Scheme of the Scheme financial year
to the end of to the end of to the end of
financial year financial year financial year
Kenneth Lim Meng Nam 8,000 28,000 (13,000) - 15,000
5 Audit Committee(6)
CA 201B(9) The Audit Committee of the company, consisting all non-executive directors, is chaired by Mr Ooi Puay Quan, an independent
CA 201B(2),(3) director, and includes Mr Desmond Ee Fong Guan, an independent director and Mr Raymond See Teoh Ung. The Audit
CA 201B(5)(a) Committee has met four times since the last Annual General Meeting (“AGM”) and has reviewed the following, where
relevant, with the executive directors and external and internal auditors of the company:
(a) The audit plans and results of the internal auditor’s examination and evaluation of the group’s systems of internal
accounting controls;
(b) The group’s financial and operating results and accounting policies;
(c) The audit plans of the external auditors;
(d) The financial statements of the company and the consolidated financial statements of the group before their submission
to the directors of the company and external auditor’s report on those financial statements;
(e) The quarterly, half-yearly and annual announcements as well as the related press releases on the results and financial
position of the company and the group;
(f) The co-operation and assistance given by management to the group’s external auditors; and
(g) The re-appointment of the external auditors of the group.
CA 201B(6) The Audit Committee has full access to and has the co-operation of management and has been given the resources required
for it to discharge its function properly. It also has full discretion to invite any director and executive officer to attend its
meetings. The external and internal auditors have unrestricted access to the Audit Committee.
CA 201B(5)(b) The Audit Committee has recommended to the directors the nomination of Deloitte & Touche LLP for re-appointment as
external auditors of the group at the forthcoming AGM of the company.

Source

6 Auditors(7)
The auditors, Deloitte & Touche LLP, have expressed their willingness to accept re-appointment.
CA 201(16) On behalf of the directors(8)
Ang Boey Chwee
March 15, 2019
5
Source
Guidance notes – Directors’ statement
CA 4 1. Financial year
If the company’s financial year is less than 12 months, the term “financial year” is defined in the first paragraph of the
Directors’ statement and therefore the rest of the report can still be “year” and does not require amendment to “period”.
Where there is a change of financial year end, the reason for the change should be disclosed in the Directors’ statement
as well as the notes to the financial statements.
CA Sch(12)(1) 2. Opinion of the directors

A statement is to be made as to whether in the opinion of the directors:
(a) the financial statements and, where applicable, the consolidated financial statements are drawn up so as to give a
true and fair view of the financial position and performance of the company and, if applicable, of the financial position
and performance of the group for the period covered by the financial statements or consolidated financial
statements; and
(b) at the date of the statement there are reasonable grounds to believe that the company will be able to pay its debts
as and when they fall due.
CA Sch(12)(7) 3. Directors in office at the date of the statement

If a director was appointed during the financial year and up to the date of the Directors’ statement, the date of the
appointment, although not required, is recommended to be disclosed clearly to identify the new director. There is no
requirement to give details of director(s) who resigned during the financial year and up to the date of the Directors’
statement.
CA Sch(12)(8)(a) 4. Directors’ interests in shares and debentures

CA Sch(12)(8)(b) Directors’ interests include personal holdings, beneficial interest of their immediate family and deemed interests as defined
CA Sch(12)(4) by Section 7 of the Singapore Companies Act. Directors’ interests in rights or share options are also to be disclosed
accordingly.
If a director resigns after the end of the financial year but before the date of the Directors’ statement, his interest at the
end of the financial year should be disclosed.
CA 164(3) Where the company is a wholly owned subsidiary of another company (the “holding company”), the company may be
deemed to have complied with section 164 of the Singapore Companies Act in relation to a director who is also a director
of that other company if the particulars required by this section to be shown in the register of the company are shown in
the register of the holding company. The following should be disclosed:
The directors, Mr/Ms _________ and Mr/Ms __________ are also directors of GAAP Holdings Ltd, incorporated in
Singapore, which owns all the shares of the company. Their interests in shares are recorded in the register of directors’
shareholdings kept under section 164 of the Singapore Companies Act by the holding company and are therefore not
disclosed in this statement.

Source
CA Sch(12)(2) 5. Share options

CA Sch(12)(3) The disclosures required by section Twelfth Schedule (2) of the Singapore Companies Act relate to options granted by the
company. Where any of the disclosures have been made in a previous report, the company need only make reference to
that report.
For options granted by the company during the financial year, the following disclosures have to be made:
(a) The number and class of shares in respect of which the option has been granted;
(b) The date of expiration of the option;
(c) The basis upon which the option may be exercised; and
(d) Whether the person to whom the option has been granted has any right to participate by virtue of the option in any
share issue of any other company.
CA Sch(12)(4) Where there are share options of subsidiary corporations, the following should be disclosed:
CA Sch(12)(2) At the end of the financial year, there were XX,XXX ordinary shares of GAAP Logistics Pte Ltd under option relating to the
(name of option scheme) Share Option Scheme. Details and terms of the options have been disclosed in the Directors’
statement of GAAP Logistics Pte Ltd.
CA Sch(12)(5) If there are no options to take up unissued shares during the financial year, the following should be disclosed:
Options to take up unissued shares

During the financial year, no options to take up unissued shares of the company or any corporation in the group were
granted.
If no options were exercised during the financial year, the following should be disclosed:
Options exercised
During the financial year, there were no shares of the company or any corporation in the group issued by virtue of the
exercise of an option to take up unissued shares.
If there are no unissued shares under option at the end of the financial year, the following should be disclosed:
CA Sch(12)(6) Unissued shares under option

At the end of the financial year, there were no unissued shares of the company or any corporation in the group under
option.
CA 201B(1) 6. Audit committee

CA 201B(9) Every listed company shall have an audit committee. For listed companies, the details and functions of the audit committee
should be disclosed in the Directors’ statement if the statutory accounts (which would not contain a section on corporate
governance), rather than the annual report, is filed with the Accounting and Corporate Regulatory Authority of Singapore.
7. Auditor
The information on the auditor is not compulsory, but it is often disclosed.
CA 201(9)(a) 8. Dating and signing of the Directors’ statement

CA 201(16) The phrase “On behalf of the directors” is not necessary if the company only has 2 directors.
LM 707
The Directors’ statement shall be made out not less than 14 days before the date of the company’s annual general meeting
(“AGM”). The report shall be made in accordance with a resolution of the board of directors, which will specify the day on
which it is to be made out and be signed by 2 directors.
CA 175(1)(a),(b) AGMs should be held within 4 and 6 months of the end of each financial year for listed and non-listed companies
LM App 2.2(10) respectively.
7
Independent auditor’s report
Source
SSA 700R(21) Independent Auditor’s Report to the members(1) of GAAP Singapore Ltd
Report on the Audit of the Financial Statements(2)
SSA 700R(23) Opinion(3)(4)
SSA 700R(24-27) We have audited the accompanying financial statements of GAAP Singapore Ltd (the “company”) and its subsidiaries
(the “group”), which comprise the consolidated statement of financial position of the group and the statement of financial
position of the company as at December 31, 2018, and the consolidated statement of profit or loss and other comprehensive
income, consolidated statement of changes in equity and consolidated statement of cash flows of the group and the
statement of changes in equity of the company for the year then ended, and notes to the financial statements, including a
summary of significant accounting policies, as set out on pages 17 to 227.
In our opinion, the accompanying consolidated financial statements of the group and the statement of financial position and
statement of changes in equity of the company are properly drawn up in accordance with the provisions of the Companies
Act, Chapter 50 (the “Act”) and Singapore Financial Reporting Standards (International) (“SFRS(I)s”) so as to give a true
and fair view of the consolidated financial position of the group and the financial position of the company as at December
31, 2018 and of the consolidated financial performance, consolidated changes in equity and consolidated cash flows of the
group and of the changes in equity of the company for the year ended on that date.
SSA 700R(28) Basis for Opinion(5)
We conducted our audit in accordance with Singapore Standards on Auditing (“SSAs”). Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our
report. We are independent of the group in accordance with the Accounting and Corporate Regulatory Authority Code of
Professional Conduct and Ethics for Public Accountants and Accounting Entities (“ACRA Code”) together with the ethical
requirements that are relevant to our audit of the financial statements in Singapore, and we have fulfilled our other ethical
responsibilities in accordance with these requirements and the ACRA Code. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.
SSA 700R(30-31) Key Audit Matters(7)
SSA 701(11) Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the
financial statements of the current year. These matters were addressed in the context of our audit of the financial statements
as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
SSA 701(13) [Description of each key audit matter in accordance with SSA 701 Communicating Key Audit Matters in the Independent
Auditor’s Report.]
Key audit matter(s) How the matter was addressed in the audit
Description of key audit matter shall To describe how the key audit matter was addressed in
 include a reference to the related disclosure(s), if any, the audit.
in the financial statements; and
 why the matter was considered to be one of the most
significance in the audit and therefore determined to be a
key audit matter.

Source
SSA 700R(32) Information Other than the Financial Statements and Auditor’s Report Thereon(8)
SSA 720R(21-22) [In accordance with SSA 720 The Auditor’s Responsibilities Relating to Other Information, a separate section is required to
SSA 720R(A53) report other information, whether financial or non-financial information (other than financial statements and the auditor’s
report thereon), included in an entity’s annual report, regardless of whether the other information is obtained by the auditor
prior to, or after, the date of the auditor’s report. Please refer to Guidance notes – Independent auditor’s report for illustrative
disclosures.]
SSA 700R(33) Responsibilities of Management and Directors for the Financial Statements
SSA 700R(34-36) Management is responsible for the preparation of financial statements that give a true and fair view in accordance with the
provisions of the Act and SFRS(I)s, and for devising and maintaining a system of internal accounting controls sufficient to
provide a reasonable assurance that assets are safeguarded against loss from unauthorised use or disposition; and
transactions are properly authorised and that they are recorded as necessary to permit the preparation of true and fair
financial statements and to maintain accountability of assets.
In preparing the financial statements, management is responsible for assessing the group’s ability to continue as a going
concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless
management either intends to liquidate the group or to cease operations, or has no realistic alternative but to do so.
The directors’ responsibilities include overseeing the group’s financial reporting process.
SSA 700R(37) Auditor’s Responsibilities for the Audit of the Financial Statements
SSA 700R(38-40) Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SSAs will always detect a
material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of
these financial statements.
As part of an audit in accordance with SSAs, we exercise professional judgement and maintain professional scepticism
throughout the audit. We also:
(a) Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design
and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to
provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
(b) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the group’s internal
control.
(c) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by management.
(d) Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt
on the group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required
to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our
auditor’s report. However, future events or conditions may cause the group to cease to continue as a going concern.
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(e) Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and
whether the financial statements represent the underlying transactions and events in a manner that achieves fair
presentation.
(f) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business act ivities
within the group to express an opinion on the consolidated financial statements. We are responsible for the direction,
supervision and performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear
on our independence, and where applicable, related safeguards.
From the matters communicated with the directors, we determine those matters that were of most significance in the audit
of the financial statements of the current year and are therefore the key audit matters. We describe these matters in our
auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be communicated in our report because the adverse consequences
of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
CA 207(2)(b) In our opinion, the accounting and other records required by the Act to be kept by the company and by those subsidiary
corporations incorporated in Singapore of which we are the auditors have been properly kept in accordance with the
provisions of the Act.
SSA 700R(46) The engagement partner on the audit resulting in this independent auditor’s report is [name](9).
Deloitte & Touche LLP

Public Accountants and
Chartered Accountants
Singapore(10)
March 15, 2019(11)

Source
Guidance notes – Independent auditor’s report
SSA 700R(22) 1. Addressee

The independent auditor’s report should be appropriately addressed as required by the circumstances of the engagement
and local regulations. The report is ordinarily addressed to the members of the company.
SSA 700R 2. Sub-title

Illustration 2 The sub-title “Report on the Audit of the Financial Statements” is unnecessary in circumstances when the second sub-title
“Report on Other Legal and Regulatory Requirements” is not applicable.
ISCA FAQ 5 3. For financial statements prepared in accordance with SFRS(I)s and IFRSs
(April 2018) An entity applying SFRS(I)s may elect to state simultaneous compliance with both SFRS(I)s and IFRSs issued by the
International Accounting Standards Board (IASB) in its financial statements.
Option 1: Presentation of the audit opinions in a single sentence
Opinion
We have audited the accompanying financial statements of GAAP Singapore Ltd (the “company”) and its subsidiaries (the
“group”), which comprise the consolidated statement of financial position of the group and the statement of financial
position of the company as at December 31, 2018, and the consolidated statement of profit or loss and other
comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows of the group
and the statement of changes in equity of the company for the year then ended, and notes to the financial statements,
including a summary of significant accounting policies, as set out on pages [x] to [x].
In our opinion, the accompanying consolidated financial statements of the group and the statement of financial position
and statement of changes in equity of the company are properly drawn up in accordance with the provisions of the
Companies Act, Chapter 50 (the Act), Singapore Financial Reporting Standards (International) (SFRS(I)s) and
International Financial Reporting Standards (IFRSs) so as to give a true and fair view of the consolidated financial position
of the group and the financial position of the company as at December 31, 2018 and of the consolidated financial
performance, consolidated changes in equity and consolidated cash flows of the group and of the changes in equity of the
company for the year ended on that date.
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Option 2: Presentation of the audit opinions separately
Opinion
position of the company as at December 31, 2018, and the consolidated statement of profit or loss and other
comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows of the group
and the statement of changes in equity of the company for the year then ended, and notes to the financial statements,
including a summary of significant accounting policies, as set out on pages [x] to [x].
and statement of changes in equity of the company are properly drawn up in accordance with the provisions of the
Companies Act, Chapter 50 (the Act) and Singapore Financial Reporting Standards (International) (SFRS(I)s) so as to give
a true and fair view of the consolidated financial position of the group and the financial position of the company as at
December 31, 2018 and of the consolidated financial performance, consolidated changes in equity and consolidated cash
flows of the group and of the changes in equity of the company for the year ended on that date.
Separate opinion in relation to International Financial Reporting Standards
As explained in Note [x] to the financial statements, the group and the company, in addition to applying SFRS(I)s, have
also applied International Financial Reporting Standards (IFRSs).
and statement of changes in equity of the company give a true and fair view of the consolidated financial position of the
group and the financial position of the company as at December 31, 2018 and of the consolidated financial performance,
consolidated changes in equity and consolidated cash flows of the group and of the changes in equity of the company for
the year then ended in accordance with IFRSs.
Under both options, the “Responsibilities of Management and Directors for the Financial Statements” section of the
auditor’s report would also be amended as follows:
Responsibilities of Management and Directors for the Financial Statements
Management is responsible for the preparation of financial statements that give a true and fair view in accordance with
the provisions of the Act, SFRS(I)s and IFRSs, and for devising and maintaining a system of internal accounting controls
sufficient to provide a reasonable assurance that assets are safeguarded against loss from unauthorised use or disposition;
and transactions are properly authorised and that they are recorded as necessary to permit the preparation of true and
fair financial statements and to maintain accountability of assets.
In preparing the financial statements, management is responsible for assessing the group’s ability to continue as a going
concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless
management either intends to liquidate the group or to cease operations, or has no realistic alternative but to do so.
The directors’ responsibilities include overseeing the group’s financial reporting process.

Source
4. For group and holding companies only

Where the complete set of financial statements of the company is also presented, the following opinion paragraphs would
be appropriate:
Opinion
position of the company as at December 31, 2018, the consolidated statement of profit or loss and other comprehensive
income, consolidated statement of changes in equity and consolidated statement of cash flows of the group and the
statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows
of the company for the year then ended, and notes to the financial statements, including a summary of significant
accounting policies, as set out on pages [x] to [x].
In our opinion, the accompanying consolidated financial statements of the group and the financial statements of the
company are properly drawn up in accordance with the provisions of the Companies Act, Chapter 50 (the “Act”) and
Singapore Financial Reporting Standards (International) (“SFRS(I)s”) so as to give a true and fair view of the consolidated
financial position of the group and the financial position of the company as at December 31, 2018 and of the consolidated
financial performance, consolidated changes in equity and consolidated cash flows of the group and of the financial
performance, changes in equity and cash flows of the company for the year ended on that date.
5. First year engagements

For first year engagements, the following shall be added after the Basis for Opinion paragraph of the independent auditor’s
report if the financial statements for the preceding year had an unmodified opinion issued by the predecessor auditors:
SSA 710(17) Other Matters

Illustration 3
The financial statements of the company for the year ended December 31, 2017 were audited by another auditor (or firm
of auditors) who expressed an unmodified opinion on those financial statements in their report dated Mm, Dd, Yyyy.
SSA 710(17) If the predecessor auditor’s opinion was modified, the following shall be added:
The financial statements of the company for the year ended December 31, 2017 were audited by another auditor (or firm
of auditors) whose report dated Mm, Dd, Yyyy expressed a qualified opinion on those financial statements as follows:
<<Quote modification by predecessor auditors>>
SSA 570R(22) 6a. Material uncertainty related to going concern

In accordance with SSA 570(R) Going Concern, when use of going concern basis of accounting is appropriate but a material
uncertainty exists, a separate section is required if adequate disclosure about the material uncertainty is made in the
financial statements. This section should be included immediately before the section of Key Audit Matters.
SSA 570R(20) 6b. “Close call” related to going concern

SSA 570R(A24) When there are events or conditions identified that may cast significant doubt on the company’s ability to continue as a
SSA 570R(A25) going concern, but based on the audit evidence obtained the auditor concludes that no material uncertainty exists,
SSA 701(A41) the auditor may determine that one or more matters relating to this conclusion arising from the auditor’s work effort under
SSA570(R) are key audit matters.
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SSA 700R(30-31) 7. Key audit matters

The Key Audit Matters section is required for listed entities only. When the auditor is otherwise required by law or regulation
or decides to communicate key audit matters in the independent auditor’s report, the auditor shall do so in accordance
with SSA 701.
SSA 570R When there is material uncertainty related to going concern, the following paragraph shall be used under the Key Audit
Illustration 1 Matters section instead:
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the
financial statements of the current year. These matters were addressed in the context of our audit of the financial
statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
In addition to the matter described in the Material Uncertainty Related to Going Concern section, we have determined the
matters described below to be the key audit matters to be communicated in our report.
SSA 705R When a qualified or adverse opinion on the financial statements is issued, the following paragraph shall be used under the
Illustration 1 Key Audit Matters section instead:
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the
financial statements of the current year. These matters were addressed in the context of our audit of the financial
statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
In addition to the matter described in the Basis for Qualified/Adverse Opinion section we have determined the matters
described below to be the key audit matters to be communicated in our report.
SSA 701(A6) Note: When a qualified or adverse opinion is expressed, there may be no other matters identified as key audit matters,
SSA 701(A58) the following paragraph should be used under the Key Audit Matters section:
Except for the matter described in the Basis for Qualified/Adverse Opinion section or Material Uncertainty Related to Going
Concern section, we have determined that there are no (other) key audit matters to communicate in our report.
SSA 705R(29) When a disclaimer opinion on the financial statements is issued, the independent auditor’s report shall not include a
Key Audit Matters section in accordance with SSA 701 or an Other Information section in accordance with SSA 720(R).
SSA 720R 8. Information other than the financial statements and auditor’s report thereon
A more specific description of the other information obtained or expected to obtain, such as “Chairman’s statement,
Operating and financial review reports” shall be disclosed in the independent auditor’s report. Illustrative disclosures
depending on the circumstances are provided below.
SSA 720R For an independent auditor’s report of any Singapore incorporated company, whether listed or other than listed, containing
Illustration 1 an unmodified opinion when the auditor has obtained all of the other information prior to the date of the auditor’s report
and has not identified a material misstatement of the other information, to disclose the following:
Management is responsible for the other information. The other information comprises the [information included in the
X report, but does not include the financial statements and our auditor’s report thereon.]
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance
conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing
so, consider whether the other information is materially inconsistent with the financial statements or our knowledge
obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we
conclude that there is a material misstatement of this other information, we are required to report that fact. We have
nothing to report in this regard.

Source
SSA 720R For an independent auditor’s report of a Singapore incorporated company containing an unmodified opinion when the
Illustration 2 auditor has obtained part of the other information prior to the date of the auditor’s report, has not identified a material
Illustration 3 misstatement of the other information, and expects to obtain other information after the date of the auditor’s report, to
disclose the following:
Management is responsible for the other information. The other information comprises the [X report but does not include
the financial statements and our auditor’s report thereon], which we obtained prior to the date of this auditor’s report,
and the Y report, which is expected to be made available to us after that date.
(Note: If the company is not a listed company, replace this paragraph with “Management is responsible for the other
information. The other information obtained at the date of this auditor’s report is [information included in the X report,
but does not include the financial statements and our auditor’s report thereon.])
Our opinion on the financial statements does not cover the other information and we do not and will not express any form
of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information identified above
and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our
knowledge obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed on the other information that we obtained prior to the date of this auditor’s
report, we conclude that there is material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
When we read the Y report, if we conclude that there is a material misstatement therein, we are required to communicate
the matter to those charged with governance and take appropriate actions in accordance with SSAs. (Note: Remove this
paragraph if the company is not a listed company.)
SSA 720R For an independent auditor’s report of a Singapore incorporated listed company containing an unmodified opinion when
Illustration 4 the auditor has obtained no other information prior to the date of the auditor’s report but expects to obtain other
information after the date of the auditor’s report, to disclose the following:
Management is responsible for the other information. The other information comprises the [information included in the
X report, but does not include the financial statements and our auditor’s report thereon]. The X report is expected to be
made available to us after the date of this auditor’s report.
Our opinion on the financial statements does not cover the other information and we will not express any form of assurance
conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information identified above
when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the
financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
When we read the X report, if we conclude that there is a material misstatement therein, we are required to communicate
the matter to those charged with governance and take appropriate actions in accordance with SSAs.
SSA 720R NOTE: When a material misstatement of the other information exists, the Other Information section including the
Illustration 5 description of material misstatement of the other information shall be included immediately after the Basis for Opinion
paragraph.
For other specimens of modified reports and material misstatements identified in other information, refer to
SSA 720 The Auditor’s Responsibilities Relating to Other Information.
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SSA 700R(46) 9. Name of audit partner

The name of the engagement partner shall be included in the independent auditor’s report on financial statements of listed
entities unless, in rare circumstances, such disclosure is reasonably expected to lead to a significant personal security
threat. In the rare circumstances that the auditor intends not to include the name of the engagement partner in the
auditor’s report, the auditor shall discuss this intention with those charged with governance to inform the auditor’s
assessment of the likelihood and severity of a significant personal security threat.
LM 713(1) The listing manual requires an issuer to disclose in its annual report the date of appointment and the name of the audit
partner in charge of auditing the issuer and its group of companies. An issuer may typically disclose this information in
the corporate information section of its annual report.
SSA 700R(48) 10. Auditor’s address

The report should name a specific location, which is ordinarily the city where the auditor maintains the office that has
responsibility for the audit.
SSA 700R(49) 11. Date of independent auditor’s report

The auditor should date the report on the financial statements no earlier than the date on which the auditor has obtained
sufficient appropriate audit evidence on which to base the auditor’s opinion on the financial statements.
CA 201(9)(a) The directors shall take reasonable steps to ensure that the financial statements are audited not less than 14 days before
the annual general meeting of the company.
SSA 700R(A67) Since the auditor’s opinion is provided on the financial statements and the financial statements are the responsibility of
management and directors, the auditor is not in a position to conclude that sufficient appropriate audit evidence has been
obtained until the auditor obtains evidence that a complete set of financial statements have been prepared and
management and directors have accepted responsibility for them.
12. Other specimens and modified reports

For other specimens and modified reports, refer to SSA 700R, SSA 701, SSA 705R, SSA 706R, SSA 710, SSA 720R and
AGS 1.

Statements of financial
position
Source
SFRS(I) 1-1.51(a) GAAP Singapore Ltd and its subsidiaries
SFRS(I) 1-1.10(a),(ea) Statements of financial position(8)

SFRS(I) 1-1.51(b),(c) December 31, 2018
LM 1207(5)(a),(b)
CA 201(5)(a),(b)
SFRS(I) 1.21 Group Company

SFRS(I) 1-1.38 December 31, December 31, January 1, December 31, December 31, January 1,
SFRS(I) 1-1.113 Assets Note 2018 2017 2017 2018 2017 2017
SFRS(I) 1-1.51(d),(e) $’000 $’000 $’000 $’000 $’000 $’000
SFRS(I) 1-1.60 Current assets

SFRS(I) 1-1.66(d) Cash and cash equivalents 7 10,759 1,175 2,374 2,074 647 282
SFRS(I) 1-1.54(i)
SFRS(I) 1-1.66(a),(c) Trade and other receivables 8 113,262 109,729 77,583 89,371 55,895 53,696
SFRS(I) 1-1.54(h)
SFRS(I) 15.105 Contract assets(7) 9 14,610 13,898 12,053 - - -
SFRS(I) 15.91 Contract costs(7) 10 149 135 110 - - -
SFRS(I) 1-1.55 Finance lease receivables 11 24,713 19,674 10,474 - - -
SFRS(I) 1-1.55 Financial assets at fair value through
profit or loss(6) 12 11,988 11,125 4,254 - - -
SFRS(I) 1-1.55 Other financial assets at amortised
cost(6) 13 25,255 18,605 18,577 - - -
SFRS(I) 1-1.55 Derivative financial instruments(6) 14 2,436 2,938 1,433 - - -
SFRS(I) 1-1.66(a),(c) Inventories 15 116,962 107,920 77,992 - - -
SFRS(I) 1-1.54(g)
SFRS(I) 15.B21 Right to returned goods asset (7)
16 626 672 604 - - -
320,760 285,871 205,454 91,445 56,542 53,978
SFRS(I) 1-1.66(c) Assets classified as held for sale 17 1,922 - - - - -
SFRS(I) 1-1.54(j)
Total current assets 322,682 285,871 205,454 91,445 56,542 53,978
SFRS(I) 1-1.60 Non-current assets

SFRS(I) 1-1.54(a) Property, plant and equipment 18 657,905 566,842 559,739 - - -
SFRS(I) 1-1.54(b) Investment property 19 12,000 11,409 11,299 - - -
SFRS(I) 1-1.55 Goodwill 20 4,038 2,538 2,754 - - -
SFRS(I) 1-1.54(c) Other intangible assets 21 26,985 21,294 3,523 - - -
SFRS(I) 1-1.55 Subsidiaries(1) 22 - - - 111,650 110,000 110,000
SFRS(I) 1-1.54(e) Associates(3) 23 45,060 12,274 10,999 - - -
SFRS(I) 1-1.54(e) Joint venture(3) 24 3,946 3,662 3,420 - - -
other comprehensive income(6) 25 23,385 23,215 23,064 - - -
profit or loss(6) 12 1,018 1,000 975 - - -
SFRS(I) 1-1.55 Other financial assets at amortised
SFRS(I) 1-1.55 cost(6) 13 2,293 2,694 2,669 - - -
SFRS(I) 1-1.55 Derivative financial instruments(6) 14 2,602 - - - - -
SFRS(I) 1-1.55 Finance lease receivables 11 51,784 44,489 42,489 - - -
SFRS(I) 1-1.54(o) Deferred tax assets 26 2,884 3,291 2,856 - - -
SFRS(I) 1-1.56
Total non-current assets 833,900 692,708 663,787 111,650 110,000 110,000
Total assets 1,156,582 978,579 869,241 203,095 166,542 163,978
17
position
Source
SFRS(I) 1.21 Group Company

SFRS(I) 1-1.38 December 31, December 31, January 1, December 31, December 31, January 1,
SFRS(I) 1-1.113 Liabilities and Equity Note 2018 2017 2017 2018 2017 2017
SFRS(I) 1-1.51(d),(e) $’000 $’000 $’000 $’000 $’000 $’000
SFRS(I) 1-1.60 Current liabilities

SFRS(I) 1-1.55 Bank overdrafts and loans 27 94,307 78,686 29,999 - - -
SFRS(I) 1-1.54(k) Trade and other payables 28 185,131 128,480 106,162 7,065 7,586 10,061
SFRS(I) 15.105 Contract liabilities(7) 29 6,215 6,793 6,357 - - -
SFRS(I) 15.B21 Refund liabilities(7) 30 1,083 1,139 1,012 - - -
SFRS(I) 1-1.55 Finance leases 31 1,470 1,483 1,982 - - -
SFRS(I) 1-1.55 Derivative financial instruments(6) 14 273 - - - - -
SFRS(I) 1-1.54(l) Provisions 32 6,432 2,065 4,385 - - -
SFRS(I) 1-1.54(n) Income tax payable 8,269 1,986 583 - - -
303,180 220,632 150,480 7,065 7,586 10,061
SFRS(I) 1-1.54(p) Liabilities directly associated with
assets classified as held for sale 17 247 - - - - -
Total current liabilities 303,427 220,632 150,480 7,065 7,586 10,061
SFRS(I) 1-1.60 Non-current liabilities

SFRS(I) 1-1.55 Bank loans 27 266,445 358,617 325,220 - - -
SFRS(I) 1-1.55 Convertible loan notes 33 24,327 - - 24,327 - -
SFRS(I) 1-1.54(k) Other payables 28 75 - - - - -
SFRS(I) 15.105 Contract liabilities(7) 29 2,854 1,798 1,857 - - -
SFRS(I) 1-1.55 Finance leases 31 923 1,244 1,244 - - -
SFRS(I) 1-1.54(l) Provisions 32 2,118 - - - - -
SFRS(I) 1-1.55 Retirement benefit obligations 34 33,928 38,474 49,805 - - -
SFRS(I) 1-1.55 Share-based payments 35 6,680 3,516 - 6,680 3,516 -
SFRS(I) 1-1.54(o) Deferred tax liabilities 26 13,173 5,772 4,350 117 - -
SFRS(I) 1-1.56
Total non-current liabilities 350,523 409,421 382,476 31,124 3,516 -
SFRS(I) 1-1.54(r) Capital, reserves and

non-controlling interests
SFRS(I) 1-1.78(e) Share capital 36 158,098 152,098 152,098 158,098 152,098 152,098
SFRS(I) 1-1.55 Treasury shares 37 (500) - - (500) - -
SFRS(I) 1-1.55 Capital reserves 38 4,633 1,202 - 4,883 1,202 -
SFRS(I) 1-1.55 Revaluation reserves 39 85,598 35,941 38,409 - - -
SFRS(I) 1-1.55 Hedging and translation reserves 40 (2,109) (1,492) (2,808) - - -
SFRS(I) 1-1.55 Retained earnings 252,327 158,201 146,107 2,425 2,140 1,819
SFRS(I) 1-1.54(r) Equity attributable to owners
of the company 498,047 345,950 333,806 164,906 155,440 153,917
SFRS(I) 1-1.54(q) Non-controlling interests 4,585 2,576 2,479 - - -
Total equity 502,632 348,526 336,285 164,906 155,440 153,917
Total liabilities and equity 1,156,582 978,579 869,241 203,095 166,542 163,978
See accompanying notes to financial statements.

position
Source
Guidance notes – Statements of financial position
SFRS(I) 10.4(a) 1. Exemption from presenting consolidated financial statements

CA 201(5)(a),(b) A parent shall consolidate all subsidiaries in its consolidated statement of financial position. A parent is exempted from
presenting consolidated financial statements if and only if the following conditions are all met:
(a) The parent is itself a wholly-owned subsidiary, or is a partially-owned subsidiary of another entity and its other
owners, including those not otherwise entitled to vote, have been informed about, and do not object to, the parent
not presenting consolidated financial statements;
(b) The parent’s debt or equity instruments are not traded in a public market (a domestic or foreign stock exchange or
an over-the-counter market, including local and regional markets);
(c) The parent did not file, nor is it in the process of filing, its financial statements with a securities commission or other
regulatory organisation for the purpose of issuing any class of instruments in a public market; and
(d) The ultimate or any intermediate parent of the parent produces consolidated financial statements that are available
for public use and comply with SFRS(I)s (or International Financial Reporting Standards), in which subsidiaries are
consolidated or are measured at fair value through profit or loss.
SFRS(I) 1-27.16 If a parent company satisfies all the above conditions and elects not to present consolidated financial statements, it shall
disclose the following:
(a) The fact that the financial statements are separate financial statements;
(b) That the exemption from consolidation has been used;
(c) The name and principal place of business (and country of incorporation, if different) of the entity whose consolidated
financial statements have been produced for public use;
(d) The address where those consolidated financial statements are obtainable;
(e) A list and description of significant investments in subsidiaries, joint ventures and associates, including the name,
country of incorporation and principal place of business (and country of incorporation, if different), proportion of
ownership interest and, if different, proportion of voting power held; and
(f) The method used to account for investments listed under (e).
The following disclosure should be included in the notes on the summary of significant accounting policies:
SFRS(I) 1-27.16(a) Consolidated financial statements – The financial statements of the subsidiaries have not been consolidated with the
company’s financial statements as the company itself is a wholly-owned subsidiary of (name of holding company),
incorporated in (country of holding company), which prepares consolidated financial statements on a worldwide basis.
Such financial statements are publicly available.
The registered address of (name of holding company) is (address of holding company).
Investments in subsidiaries in the financial statements of the company are stated at cost, less any impairment in
recoverable value.
2. Investment entities
SFRS(I) 10.4B An investment entity need not present consolidated financial statements or apply SFRS(I) 3 when it obtains control of
SFRS(I) 10.31 another entity, instead, the entity shall measure the investment in subsidiaries at fair value through profit or loss.
SFRS(I) 10.32 If an investment entity has a subsidiary that provides services that relate to the investment entity’s investment activities,
it shall consolidate that subsidiary in accordance with paragraphs 19–26 of SFRS(I) 10 and apply the requirements of
SFRS(I) 3 to the acquisition of any such subsidiary.
SFRS(I) 10.33 A parent of an investment entity shall consolidate all entities that it controls, including those controlled through an
investment entity subsidiary, unless the parent itself is an investment entity.
19
position
Source
SFRS(I) 1-28.17 3. Exemption from equity accounting for joint ventures and associates
SFRS(I) 11.24 A company shall equity account for all joint ventures and associates. A company is exempted from equity accounting for
joint ventures and associates if and only if in the following circumstances or the following conditions are all met:
SFRS(I) 1-28.20 (a) The investment is classified as held for sale in accordance with SFRS(I) 5 Non-current Assets Held for Sale and
Discontinued Operations and is accounted for in accordance with SFRS(I) 5;
SFRS(I) 1-28.18 (b) The company is a venture capital organisation, mutual fund, unit trust or similar entity, including investment-linked
insurance funds, that upon initial recognition are designated as at fair value through profit or loss or are classified
as held for trading and accounted for in accordance with SFRS(I) 9; or
SFRS(I) 1-28.17 (c) If all of the following apply:

(i) The company is a wholly-owned subsidiary, or is a partially-owned subsidiary of another entity and its other
owners, including those not otherwise entitled to vote, have been informed about, and do not object to,
the company not applying the equity method;
(ii) The company debt or equity instruments are not traded in a public market (a domestic or foreign stock
exchange or an over-the-counter market, including local and regional markets);
(iii) The company did not file, nor is it in the process of filing, its financial statements with a securities commission
or other regulatory organisation, for the purpose of issuing any class of instruments in a public market; and
(iv) The ultimate or any intermediate parent of the company produces consolidated financial statements available
for public use that comply with SFRS(I)s ( or International Financial Reporting Standards), in which subsidiaries
are consolidated or are measured at fair value through profit or loss.
SFRS(I) 1.21 4. Comparative information in the first SFRS(I) financial statements

SFRS(I) 1.21 requires that an entity’s first SFRS(I) financial statements include at least three statements of financial
position, two statements of profit or loss and other comprehensive income, two separate statements of profit or loss and
other comprehensive income, two statements of cash flows, and two statements of changes in equity and related notes,
including comparative information for all statements presented.
5. Restatements and reclassifications (other than arising from first-time adoption)

SFRS(I) 1-1.40A SFRS(I) 1-1.40A states that when an entity applies an accounting policy retrospectively or makes a retrospective
restatement of items in its financial statements or when it reclassifies items in its financial statements, it shall present, as
a minimum, three statements of financial position, two of each of the other statements, and related notes.
SFRS(I) 1-1.40A- SFRS(I) 1-1 Presentation of Financial Statements provides guidance on when a statement of financial position as at the
40D beginning of the preceding period (third statement of financial position) and the related notes should be presented in the
financial statements. An entity is required to present a third statement of financial position if:
(a) It applies an accounting policy retrospectively, makes a retrospective restatement of items in its financial statements
or reclassifies items in its financial statements; and
(b) The retrospective application, retrospective restatement or the reclassification has a material effect on the information
in the third statement of financial position.
Other than disclosures of certain specified information as required by SFRS(I) 1-1.41 to SFRS(I) 1-1.44 and SFRS(I) 1-8
Accounting Policies, Changes in Accounting Estimates and Errors, the related notes to the third statement of financial
position are not required to be disclosed.
SFRS(I) 1-1.41 Where the presentation or classification of items in the statements is amended, comparative amounts shall be reclassified
SFRS(I) 1-1.42 unless the reclassification is impracticable. When comparative amounts are reclassified, an entity shall disclose the nature
of the reclassification, the amount of each item or class of items that is reclassified and the reason for the reclassification
(See Note 60 for a sample disclosure format as required by SFRS(I) 1-1.41).

position
Source
6. Classification and presentation of financial instruments in the statement of financial position

Financial instruments have been classified into categories in accordance with sections 4.1 and 4.2 of SFRS(I) 9.
SFRS(I) 1-1.54 and SFRS(I) 7.8 do not require separate line items for financial instruments measured at fair value through
profit or loss, at fair value through other comprehensive income and at amortised cost. Hence, it is acceptable to combine
them into one-line item on the statement of financial position with details in a note. However, depending on the significance
of these items, each can be separately shown as a line item respectively as illustrated in these illustrative financial
statements.
SFRS(I) 1-1.55 SFRS(I) 1-1 clarifies that an entity shall present additional line items (including by disaggregating the line items listed in
SFRS(I) 1-1.54), headings and subtotals in the statement of financial position when such presentation is relevant to an
understanding of the entity’s financial position. Additional guidance is provided below:
SFRS(I) 1-1.55A When an entity presents subtotals in accordance with SFRS(I) 1-1.55, those subtotals shall:
(a) be comprised of line items made up of amounts recognised and measured in accordance with SFRS(I);
(b) be presented and labelled in a manner that makes the line items that constitute the subtotal clear and understandable;
(c) be consistent from period to period, in accordance with SFRS(I) 1-1.45; and
(d) not be displayed with more prominence than the subtotals and totals required in SFRS(I) for the statement of financial
position.
SFRS(I) 7.8 SFRS(I) 7.8 requires the carrying amounts of each of the following categories as defined in SFRS(I) 9, to be disclosed
either in the statement of financial position or in the notes [see illustration in Note 4(a)]:
(a) Financial assets measured at fair value through profit or loss, showing separately (i) those designated as such upon
initial recognition or subsequently in accordance with paragraph 6.7.1 of SFRS(I) 9 and (ii) those mandatorily
measured at fair value through profit or loss in accordance with SFRS(I) 9;
(b) [deleted];
(c) [deleted];
(d) [deleted];
(e) Financial liabilities at fair value through profit or loss, showing separately (i) those designated as such upon initial
recognition or subsequently in accordance with paragraph 6.7.1 of SFRS(I) 9 and (ii) those that meet the definition of
held-for-trading in SFRS(I) 9;
(f) Financial assets measured at amortised cost;
(g) Financial liabilities measured at amortised cost; and
(h) Financial assets measured at fair value through other comprehensive income, showing separately (i) financial assets
that are measured at fair value through other comprehensive income in accordance with paragraph 4.1.2A of SFRS(I)
9 and (ii) investments in equity instruments designated as such upon initial recognition in accordance with paragraph
5.7.5 of SFRS(I) 9.
21
position
Source
7. Assets and liabilities arising from contracts with customers

SFRS(I) 15.105 SFRS(I) 15.105 states that when either party to a contract has performed, an entity shall present the contract in the
statement of financial position as a contract asset or a contract liability, depending on the relationship between the entity’s
performance and the customer’s payment. Any unconditional rights to consideration (i.e. amounts that relate to completed
performance obligations for which payment is due under the contract) should be presented separately as a receivable.
SFRS(I) 15.116(a) SFRS(I) 15.116(a) requires disclosure of the opening and closing balances of receivables, contract assets and contract
liabilities from contracts with customers, if not otherwise separately presented or disclosed. Whether these balances are
disclosed separately on the face of the financial statements will be a materiality judgement to be made by individual
entities based on their own facts and circumstances. They are disclosed separately here for illustrative purposes (ignoring
the size of the balances involved).
As a result of the adoption of SFRS(I) 15, the disclosures previously required under FRS 11 Construction Contracts included
in Note 9 Amounts due from (to) contract customers in the 2017 Disclosures are no longer required. The balance previously
included as an amount due from contract customers in Note 9 has been reclassified as a contract asset and Note 9 now
contains the disclosures around contract asset balances that are required by SFRS(I) 15. The previous balance “amount
due to contract customers” has been reclassified as a contract liability balance within a new contract liability note, Note
29.
Contract costs has been added as a line item for costs to obtain construction contracts that meet the criteria for
capitalisation in SFRS(I) 15.
A refund asset relating to customers’ right to return products has been presented as a separate line item, “Right to returned
goods asset”. In many cases, entities may conclude that it is not necessary to present this balance separately from
inventories. In such a case, separate disclosure of this balance should be made in the notes to the financial statements. A
refund liability is presented relating to those products expected to be returned.
8. Terminology used in the financial statements

The use of titles of the financial statements such as “Statement of Financial Position” is not mandatory. The use of
“Balance Sheet” and “Statement of Financial Position” may be used interchangeably. The reference in the independent
auditor’s report should be updated accordingly.

[Alt 1]
Consolidated statement of
profit or loss and other
comprehensive income
Source
SFRS(I) 1-1.10(b) Consolidated statement of profit or loss and other comprehensive income(12)
SFRS(I) 1-1.51(b),(c) Year ended December 31, 2018
LM 1207(5)(a)
CA 201(5)(a)
SFRS(I) 1.21 Group

SFRS(I) 1-1.113 Note 2018 2017
SFRS(I) 1-1.51(d),(e) $’000 $’000
Continuing operations
SFRS(I) 1-1.82(a) Revenue 42 1,064,660 728,250

SFRS(I) 15.2
SFRS(I) 15.113(a)
SFRS(I) 1-1.85 Other operating income 9,892 6,745

SFRS(I) 1-1.99 Changes in inventories of finished goods and work in progress (2) 5,089 7,589
SFRS(I) 1-1.99 Raw materials and consumables used(2) (668,794) (465,961)
SFRS(I) 1-1.99 Employee benefits expense(2) 49 (220,299) (188,809)
SFRS(I) 1-1.99 Depreciation and amortisation expense (2) 49 (35,365) (17,238)
SFRS(I) 1-1.99 Other operating expenses(2) (23,417) (29,561)
SFRS(I) 1-1.82(c) Share of profit of associates and joint venture 1,270 1,517
SFRS(I) 1-1.85 Investment revenue 44 4,012 2,270
SFRS(I) 1-1.85 Other gains and losses(9) 45 120 (171)
SFRS(I) 1-1.82(aa) Net gain (loss) from the derecognition of financial assets measured at amortised cost - -
SFRS(I) 1-1.82(ca) Net gain (loss) on reclassification of financial assets from amortised cost to FVTPL - -
SFRS(I) 1-1.82(cb) Net gain (loss) on reclassification of financial assets from FVTOCI to FVTPL - -
SFRS(I) 1-1.82(ba) Impairment loss recognised on financial assets 49 (33) (253)
SFRS(I) 1-1.82(b) Finance costs 46 (31,870) (24,508)
SFRS(I) 1-1.85 Profit before tax 105,265 19,870

SFRS(I) 1-1.82(d) Income tax expense 47 (16,166) (3,810)
SFRS(I) 1-1.85 Profit for the year from continuing operations 89,099 16,060
Discontinued operation(5)
SFRS(I) 1-1.82(ea)
SFRS(I) 5.33(a) Profit for the year from discontinued operation 48 10,676 4,171
SFRS(I) 1-1.81A(a) Profit for the year 49 99,775 20,231
23
[Alt 1]
Source
SFRS(I) 1.21 Group

SFRS(I) 1-1.113 Note 2018 2017
SFRS(I) 1-1.51(d),(e) $’000 $’000
SFRS(I) 1-1.91(b) Other comprehensive income(3)(4)(11)
SFRS(I) 1-1.82A(a),(b) Items that will not be reclassified subsequently to profit or loss
SFRS(I) 9.B5.7.1 Net fair value gain on investments in equity instruments designated as at FVTOCI 41 46 47
SFRS(I) 9.B5.7.9 Net fair value gain on financial liabilities designated as at FVTPL attributable to
changes in credit risk 41 - -
Gain (Loss) on revaluation of property 41 53,283 (2,845)
Remeasurement of defined benefit obligation 34 - -
Net fair value gain on hedging instruments entered into for cash flow hedges
subject to basis adjustment 41 - -
Share of other comprehensive income of associates and joint venture 41 - -
SFRS(I) 1-1.91(b) Income tax relating to component of other comprehensive income that
will not be reclassified subsequently 41 (3,692) 320
49,637 (2,478)
SFRS(I) 1-1.82A(a),(b) Items that may be reclassified subsequently to profit or loss

SFRS(I) 9.5.7.10 Net fair value gain on investments in debt instruments measured at FVTOCI 41 20 10
not subject to basis adjustment 41 1,076 586
Exchange differences on translation of foreign operations 41 (1,693) 730
may be reclassified subsequently 47 - -
(597) 1,326
SFRS(I) 1-1.81A(b) Other comprehensive income for the year, net of tax 49,040 (1,152)
SFRS(I) 1-1.81A(c) Total comprehensive income for the year 148,815 19,079

[Alt 1]
Source
SFRS(I) 1.21 Group

SFRS(I) 1-1.113 Note 2018 2017
SFRS(I) 1-1.51(d),(e) $’000 $’000
Profit attributable to:
SFRS(I) 1-1.81B(a)(ii) Owners of the company 99,166 20,134

SFRS(I) 1-1.81B(a)(i) Non-controlling interests 609 97
99,775 20,231
Total comprehensive income attributable to:
SFRS(I) 1-1.81B(b)(ii) Owners of the company 148,206 18,982

SFRS(I) 1-1.81B(b)(i) Non-controlling interests 609 97
148,815 19,079
Earnings per share(6) 51
From continuing and discontinued operations:
SFRS(I) 1-33.66 Basic 82.1 cents 16.8 cents
SFRS(I) 1-33.66 Diluted 59.4 cents 16.5 cents
From continuing operations:
25
[Alt 1]
Source
Guidance notes – Consolidated statement of profit or loss and other comprehensive income
An entity may use titles for the statements other than those used in SFRS(I) 1-1. For example, an entity may use the title
“statement of comprehensive income” instead of “statement of profit or loss and other comprehensive income”.
One statement vs. two statements
SFRS(I) 1-1 provides the option to present profit or loss and other comprehensive income (OCI) in either a single statement
or in two separate but consecutive statements. Alt 1 above illustrates the presentation of profit or loss and OCI in one
statement. Alt 2 (see the following pages) illustrates the presentation of profit or loss and OCI in two separate but
consecutive statements.
Whichever presentation approach is adopted, the distinction is retained between items recognised in profit or loss and
items recognised in OCI. Under both approaches, profit or loss, total OCI, as well as total comprehensive income for the
period (being the total of profit or loss and OCI) should be presented. Under the two-statement approach, the separate
statement of profit or loss ends at “profit for the year”, and this “profit for the year” is then the starting point for the
statement of profit or loss and other comprehensive income, which is required to be presented immediately following the
statement of profit or loss. In addition, the analysis of “profit for the year” between the amount attributable to the owners
of the company and the amount attributable to non-controlling interests is presented as part of the separate statement of
profit or loss.
OCI: items that may or may not be reclassified
Irrespective of whether the one-statement or the two-statement approach is followed, the items of OCI should be classified
by nature and grouped into those that, in accordance with other SFRS(I)s:
(a) Will not be reclassified subsequently to profit or loss; and
(b) May be reclassified subsequently to profit or loss when specific conditions are met.
Presentation of information
SFRS(I) 1-1.85 SFRS(I) 1-1 clarifies that an entity shall present additional line items (including by disaggregating the line items listed in
SFRS(I) 1-1.82), headings and subtotals in the statement(s) presenting profit or loss and other comprehensive income
when such presentation is relevant to an understanding of the entity’s financial performance. Additional guidance is
provided below:
SFRS(I) 1-1.85A When a company presents subtotals in accordance with SFRS(I) 1-1.85, those subtotals shall:
(a) be comprised of line items made up of amounts recognised and measured in accordance with SFRS(I);
(b) be presented and labelled in a manner that makes the line items that constitute the subtotal clear and understandable;
(c) be consistent from period to period, in accordance with SFRS(I) 1-1.45; and
(d) not be displayed with more prominence than the subtotals and totals required in SFRS(I) for the statement(s)
presenting profit or loss and other comprehensive income.
SFRS(I) 1-1.85B A company shall present the line items in the statement(s) presenting profit or loss and other comprehensive income that
reconcile any subtotals presented in accordance with SFRS(I) 1-1.85 with the subtotals or totals required in SFRS(I).

[Alt 2]
profit or loss
Source
SFRS(I) 1-1.10(b) Consolidated statement of profit or loss

LM 1207(5)(a)
CA 201(5)(a)
SFRS(I) 1.21 Group

SFRS(I) 1-1.113 Note 2018 2017
SFRS(I) 1-1.51(d),(e) $’000 $’000
SFRS(I) 1-1.82(a) Revenue 42 1,064,660 728,250

SFRS(I) 15.2
SFRS(I) 15.113(a)

SFRS(I) 1-1.99 Changes in inventories of finished goods and work in progress (2) 5,089 7,589
SFRS(I) 1-1.99 Raw materials and consumables used(2) (668,794) (465,961)
SFRS(I) 1-1.99 Employee benefits expense(2) 49 (220,299) (188,809)
SFRS(I) 1-1.99 Depreciation and amortisation expense (2) 49 (35,365) (17,238)
SFRS(I) 1-1.99 Other operating expenses(2) (23,417) (29,561)
SFRS(I) 1-1.82(aa) Net gain (loss) from the derecognition of financial assets measured at amortised cost - -
SFRS(I) 1-1.82(ba) Impairment loss reversed (recognised) on financial assets 49 (33) (253)

SFRS(I) 1-1.82(ea)
27
[Alt 2]
profit or loss
Source
SFRS(I) 1.21 Group

SFRS(I) 1-1.113 Note 2018 2017
SFRS(I) 1-1.51(d),(e) $’000 $’000

99,775 20,231
SFRS(I) 1-33.67A Earnings per share(6) 51
From continuing and discontinued operations:
From continuing operations:

[Alt 2]
Source
SFRS(I) 1-1.10(b) Consolidated statement of profit or loss and other comprehensive income(12)
LM 1207(5)(a)
CA 201(5)(a)
SFRS(I) 1.21 Group

SFRS(I) 1-1.113 Note 2018 2017
SFRS(I) 1-1.51(d),(e) $’000 $’000
SFRS(I) 1-1.10A Profit for the year 49 99,775 20,231
Other comprehensive income(3)(4)(11)
SFRS(I) 1-1.82A(a),(b) Items that will not be reclassified subsequently to profit or loss
will not be reclassified subsequently 41 (3,692) 320
49,637 (2,478)
SFRS(I) 1-1.82A(a),(b) Items that may be reclassified subsequently to profit or loss

may be reclassified subsequently 47 - -
(597) 1,326
SFRS(I) 1-1.81A(b) Other comprehensive income for the year, net of tax 49,040 (1,152)
SFRS(I) 1-1.81A(c) Total comprehensive income for the year 148,815 19,079
Total comprehensive income attributable to:
SFRS(I) 1-1.81B(b)(ii) Owners of the company 148,206 18,982

SFRS(I) 1-1.81B(b)(i) Non-controlling interests 609 97
148,815 19,079
29
[Alt 2]
Source
Guidance notes – Consolidated statement of profit or loss and other comprehensive income
CA 201(5) 1. Statement of profit or loss and other comprehensive income and statement of cash flows
LM 1207(5)(a) Where consolidated financial statements are required, the statement of profit or loss and other comprehensive income
and statement of cash flows of the company need not be presented. However, the statement of financial position of the
company has to be presented. If consolidated financial statements are not required, for reasons such as exemption under
SFRS(I) 1-27.10, the statement of profit or loss and other comprehensive income and statement of cash flows of the
company shall be presented.
SFRS(I) 1-1.99 2. Alternative formats of the analysis of expenses recognised in profit or loss
The entity shall present an analysis of expenses recognised in profit or loss using a classification based on either their
nature or their function, whichever provides information that is reliable and more relevant. The formats outlined under
Alt 1 and Alt 2 above aggregate expenses according to their nature. The format outlined below aggregates expenses
according to their function (SFRS(I) 1-1.99):
Group
Note 2018 2017
$’000 $’000
SFRS(I) 1-1.82(a) Revenue 42 1,064,660 728,250

SFRS(I) 15.2
SFRS(I) 15.113(a)
SFRS(I) 1-1.99 Cost of sales (697,027) (552,343)
SFRS(I) 1-1.85 Gross profit 367,633 175,907

SFRS(I) 1-1.99 Distribution costs (96,298) (45,609)
SFRS(I) 1-1.99 Administrative expenses (102,104) (70,020)
SFRS(I) 1-1.99 Other operating expenses (47,357) (26,008)
SFRS(I) 1-1.82(aa) Net gain (loss) from the derecognition of financial assets measured
at amortised cost - -
SFRS(I) 1-1.82(ba) Impairment loss reversed (recognised) on financial assets 49 (33) (253)

SFRS(I) 1-1.82(ea)

99,775 20,231

[Alt 2]
Source
3. Alternative presentation for components of other comprehensive income

The company may present components of other comprehensive income either before related tax effects with one amount
shown for the aggregate amount of income tax relating to those components (as shown in the preceding pages) or net of
related tax effects as shown below:
Group
Note 2018 2017
$’000 $’000
SFRS(I) 1-1.91 Other comprehensive income, after tax
Items that will not be reclassified subsequently to profit or loss

49,637 (2,478)
Items that may be reclassified subsequently to profit or loss

(597) 1,326
Other comprehensive income for the year, net of tax 49,040 (1,152)
Whichever option is selected, the income tax relating to each component of comprehensive income must be disclosed,
either in the statement of comprehensive income or in the notes (see Note 47).
SFRS(I) 1-1.90 4. Components of other comprehensive income and reclassification adjustments

For reclassification adjustments, an aggregated presentation can be adopted, with separate disclosure of the current year
gain or loss and reclassification adjustments in the notes. The above shows an aggregated presentation of components of
other comprehensive income. Note 41 shows the amounts for reclassification adjustments and any current year gain or
losses.
Alternatively, using a disaggregated presentation, the current year gain or loss and reclassification adjustments can be
shown separately in the statement of comprehensive income.
SFRS(I) 1-1.94 An entity may present the analysis of reclassification adjustments in other comprehensive income by item either in the
statement(s) of profit or loss and other comprehensive income or in the notes to the financial statements.
31
[Alt 2]
Source
SFRS(I) 5.33A 5. Discontinued operation

If an entity presents the components of profit or loss in a separate statement as described in SFRS(I) 1-1.10A i.e. Alt 2,
a section identified as relating to discontinued operation is presented in that statement.
SFRS(I) 5 Non-current Assets Held for Sale and Discontinued Operations specifies the disclosures required in respect of
assets (or disposal groups) classified as held for sale or discontinued operations. Consequently, disclosures in other
SFRS(I)s do not apply to such assets (or disposal groups) unless:
 Those SFRS(I)s specifically require disclosures in respect of non-current assets (or disposal groups) classified as held
for sale or discontinued operations; or
 The disclosures relate to the measurement of assets or liabilities within a disposal group that are outside the scope of
SFRS(I) 5’s measurement requirements and the information is not disclosed elsewhere in the financial statements.
For earnings per share on discontinued operation, please see 6 below.
6. Earnings per share

SFRS(I) 1-33.66 The company should present both basic and diluted earnings per share on the statement of comprehensive income for
SFRS(I) 1-33.67A each class of ordinary shares that has a different right to share in the net profit for the year. If a company presents the
components of profit or loss in a separate statement as described in SFRS(I) 1-1.10A i.e. Alt 2, it presents basic and
SFRS(I) 1-33.66 diluted earnings per share only in that separate statement. An entity shall present basic and diluted earnings per share
SFRS(I) 1-33.69 with equal prominence for all periods presented, even should the amounts disclosed be the same or be negative.
SFRS(I) 1-33.68 Where the company reports a discontinued operation, it shall disclose the basic and diluted earnings per share in the
SFRS(I) 1-33.68A statement of comprehensive income or in the notes to the financial statements. If an entity presents the components of
profit or loss in a separate statement as described in SFRS(I) 1-1.10A i.e. Alt 2, it presents basic and diluted earnings per
share for the discontinued operation, in that separate statement or in the notes.
SFRS(I) 1-33.12 requires that basic and diluted earnings per share be computed based on the amounts attributable to
ordinary owners of the parent entity in respect of (a) profit or loss from continuing operations attributable to the parent
entity; and (b) profit or loss attributable to the parent entity.
Voluntary “per-share” disclosures

Entities may voluntarily disclose per share amounts for other components of total comprehensive income or separate
income statement, subject to the requirements of paragraphs 73 and 73A of SFRS(I) 1-33 i.e. provided that:
 Such amounts are calculated using the weighted average number of ordinary shares determined in accordance with
SFRS(I) 1-33;
 Basic and diluted amounts per share relating to such a component are disclosed with equal prominence and presented
in the notes; and
 The entity discloses the basis on which the numerator(s) is (are) determined, including whether amounts per share
are before tax or after tax.
If a component of the statement of comprehensive income (or separate statement as described in SFRS(I) 1-1.10A) is
used that is not reported as a line item in the statement of comprehensive income (or separate statement as described in
SFRS(I) 1-1.10A), a reconciliation shall be provided between the component used and a line item that is reported in the
statement of comprehensive income (or separate statement as described in SFRS(I) 1-1.10A).

[Alt 2]
Source
SFRS(I) 1-1.36 7. Financial years of different lengths

SFRS(I) 1-1.38 Where the length of the current financial year is of a different timeframe from the comparative financial year, additional
disclosure is required in the notes to financial statements to highlight the fact that the amounts disclosed are not
comparable. The following should be disclosed in the notes:
Comparative figures
The financial statements for 2018 covered the period from July 1, 2017 to December 31, 2018.
The financial statements for 2017 covered the twelve months ended June 30, 2017.
SFRS(I) 1-1.41 8. Reclassifications and restatements (other than arising from first-time adoption)
SFRS(I) 1-1.42 Where the presentation or classification of items in the statements is amended, comparative amounts shall be reclassified
unless the reclassification is impracticable. When comparative amounts are reclassified, an entity shall disclose the nature
of the reclassification, the amount of each item or class of items that is reclassified and the reason for the reclassification
(See Note 60 for a sample disclosure format as required by SFRS(I) 1-1.41).
SFRS(I) 1-1.85 9. Additional disclosures

SFRS(I) 1-1.86 Additional line items, headings and subtotals should be presented in the statement of profit or loss and other
comprehensive income and the statement of profit or loss (if presented under Alt 2), when such presentation is relevant
to an understanding of the entity’s financial performance. When items of income and expense are material, their nature
and amount shall be disclosed separately.
SFRS(I) 1-1.87 10. Extraordinary items

The company shall not present any items of income and expense as extraordinary items, either in the statement of
comprehensive income or the separate income statement (if presented under Alt 2), or in the notes.
SFRS(I) 1-1.82A(b) 11. Share of other comprehensive income of associates and joint ventures accounted for using the equity
method
SFRS(I) 1-1 clarifies that a company’s share of other comprehensive income of equity-accounted associates and joint
ventures should be presented in aggregate as single line items based on whether or not it will subsequently be reclassified
to profit or loss.
SFRS(I) 1-1.82A(b) requires disclosure of the share of other comprehensive income of associates and joint ventures
accounted for using the equity method, separated into the share of items that, in accordance with other SFRS(I)s:
(i) will not be reclassified subsequently to profit or loss; and
(ii) will be reclassified subsequently to profit or loss when specific conditions are met.
12. Terminology used in the Financial Statements

The use of titles of the Financial Statements such as “Statement of Profit or Loss and Other Comprehensive Income” is
not mandatory. The reference in the independent auditor’s report should be updated accordingly.
13. Reference to consolidated statement of profit or loss and other comprehensive income
The notes to the financial statements of the illustrative financial statements hereafter will be based on Alt 1. Reference
will be made to the consolidated statement of profit or loss and other comprehensive income, as applicable.
33
Statements of changes in equity
Source

SFRS(I) 1-1.10(c)
SFRS(I) 1-1.51(b) Statements of changes in equity
SFRS(I) 1-1.51(c) Year ended December 31, 2018
Group
Equity
Share Property Investments attributable Non-
Share Treasury Equity options revaluation revaluation Translation Hedging Retained to owners of controlling
SFRS(I) 1.21 capital shares reserves reserves reserves reserves reserves reserves earnings the company interests Total
SFRS(I) 1-1.51(d),(e) $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
(Note 36) (Note 37) (Note 38) (Note 38) (Note 39) (Note 39) (Note 40) (Note 40)
SFRS(I) 1-1.106(d) Balance as at January 1, 2017 152,098 - - - 37,977 432 (4,098) 1,290 146,107 333,806 2,479 336,285
SFRS(I) 1-1.106(a) Total comprehensive income for the year
SFRS(I) 1-1.106(d)(i) Profit for the year - - - - - - - - 20,134 20,134 97 20,231
SFRS(I) 1-1.106(d)(ii) Other comprehensive loss for the year - - - - (2,525) 57 730 586 - (1,152) - (1,152)
Total - - - - (2,525) 57 730 586 20,134 18,982 97 19,079
SFRS(I) 1-1.106(d)(iii) Transactions with owners, recognised
directly in equity
SFRS(I) 1-1.106(d)(iii) Recognition of share-based payments - - - 1,202 - - - - - 1,202 - 1,202
SFRS(I) 1-1.107 Dividends - - - - - - - - (8,040) (8,040) - (8,040)
Total - - - 1,202 - - - - (8,040) (6,838) - (6,838)
SFRS(I) 1-1.106(d) Balance as at December 31, 2017 152,098 - - 1,202 35,452 489 (3,368) 1,876 158,201 345,950 2,576 348,526
SFRS(I) 1-1.106(a) Total comprehensive income for the year
SFRS(I) 1-1.106(d)(i) Profit for the year - - - - - - - - 99,166 99,166 609 99,775
SFRS(I) 1-1.106(d)(ii) Other comprehensive income for the year - - - - 49,591 66 (1,693) 1,076 - 49,040 - 49,040
Total - - - - 49,591 66 (1,693) 1,076 99,166 148,206 609 148,815
SFRS(I) 1-1.106(d)(iii) Transactions with owners, recognised
directly in equity
SFRS(I) 1-1.106(d)(iii) Non-controlling interest arising from
acquisition of a subsidiary (Note 53.3) - - - - - - - - - - 1,500 1,500
SFRS(I) 1-1.106(d)(iii) Effects of acquiring part of non-controlling
interests in a subsidiary - - (250) - - - - - - (250) (100) (350)
SFRS(I) 1-1.106(d)(iii) Recognition of equity component of
convertible loan notes - - 995 - - - - - - 995 - 995
SFRS(I) 1-1.106(d)(iii) Deferred tax liability on recognition of equity
component of convertible loan notes - - (174) - - - - - - (174) - (174)
SFRS(I) 1-1.106(d)(iii) Recognition of share-based payments - - - 2,860 - - - - - 2,860 - 2,860
SFRS(I) 1-1.107 Dividends - - - - - - - - (5,040) (5,040) - (5,040)
SFRS(I) 1-1.106(d)(iii) Issue of share capital 6,000 - - - - - - - - 6,000 - 6,000
SFRS(I) 1-1.106(d)(iii) Repurchase of shares - (500) - - - - - - - (500) - (500)
Total 6,000 (500) 571 2,860 - - - - (5,040) 3,891 1,400 5,291
SFRS(I) 1-1.106(d) Balance as at December 31, 2018 158,098 (500) 571 4,062 85,043 555 (5,061) 2,952 252,327 498,047 4,585 502,632

Statements of changes in equity
Source

SFRS(I) 1-1.10(c)
SFRS(I) 1-1.51(b) Statements of changes in equity
Company
Share
Treasury Equity options Retained
SFRS(I) 1.21 Share capital shares reserves reserves earnings Total
SFRS(I) 1-1.51(d),(e) $’000 $’000 $’000 $’000 $’000 $’000
(Note 36) (Note 37) (Note 38) (Note 38)
SFRS(I) 1-1.106(d) Balance as at January 1, 2017 152,098 - - - 1,819 153,917

SFRS(I) 1-
1.106(d)(i),(ii) Profit for the year, representing total comprehensive income for the year - - - - 8,361 8,361
SFRS(I) 1-1.106(d)(iii) Transactions with owners, recognised directly in equity
SFRS(I) 1-1.106(d)(iii) Recognition of share-based payments - - - 1,202 - 1,202
SFRS(I) 1-1.107 Dividends - - - - (8,040) (8,040)
Total - - - 1,202 (8,040) (6,838)
SFRS(I) 1-1.106(d) Balance as at December 31, 2017 152,098 - - 1,202 2,140 155,440
SFRS(I) 1-
1.106(d)(i),(ii) Profit for the year, representing total comprehensive income for the year - - - - 5,325 5,325
SFRS(I) 1-1.106(d)(iii) Transactions with owners, recognised directly in equity
SFRS(I) 1-1.106(d)(iii) Recognition of equity component of convertible loan notes - - 995 - - 995
SFRS(I) 1-1.106(d)(iii) Deferred tax liability on recognition of equity component of convertible loan notes - - (174) - - (174)
SFRS(I) 1-1.106(d)(iii) Recognition of share-based payments - - - 2,860 - 2,860
SFRS(I) 1-1.107 Dividends - - - - (5,040) (5,040)
SFRS(I) 1-1.106(d)(iii) Issue of share capital 6,000 - - - - 6,000
SFRS(I) 1-1.106(d)(iii) Repurchase of shares - (500) - - - (500)
Total 6,000 (500) 821 2,860 (5,040) 4,141
SFRS(I) 1-1.106(d) Balance as at December 31, 2018 158,098 (500) 821 4,062 2,425 164,906
35
Statements of changes in
equity
Source
Guidance notes – Statements of changes in equity
1. Level of detail presented in the statement of changes in equity

SFRS(I) 1-1.106A An entity may present the analysis of other comprehensive income by item for each component of equity either in the
statement of changes in equity or in the notes to the financial statements (See Notes 39 and 40). SFRS(I) 1-1 also allows
that some of the details regarding items of other comprehensive income (e.g. income tax and reclassification adjustments)
may be disclosed in the notes (See Notes 41 and 47) rather than in the statement of comprehensive income.
SFRS(I) 1-1.79(b) SFRS(I) 1-1 also permits the description of the nature and purpose of each reserve within equity to be presented either
in the statement of financial position or the statement of changes in equity, or in the notes (See Notes 36 to 41).
Entities will determine the most appropriate presentation for their circumstances – electing to present much of the detail
in the notes (as presented in these illustrative financial statements) ensures that the primary financial statements are not
cluttered by unnecessary detail.
Whichever presentation is selected, entities will need to ensure that the following requirements are met:
 Detailed reconciliations are required for each class of share capital (in the statement of changes in equity or in the
notes) – See Note 36;
 Detailed reconciliations are required for each component of equity – separately disclosing the impact on each such
component of (i) profit or loss, (ii) each component of other comprehensive income, and (iii) transactions with owners
in their capacity as owners (in the statement of changes in equity or in the notes) – In this illustrative financial
statements, details of non-owner changes in equity are available from the income statement/statement of
comprehensive income and Note 41; and details of owner changes in equity are available from the statements of
changes in equity itself;
 The amount of income tax relating to each component of other comprehensive income should be disclosed (in the
statement of comprehensive income or in the notes) – See Note 47; and
 Reclassification adjustments should be presented separately from the related component of other comprehensive
income (in the statement of comprehensive income or in the notes) – See Note 41.
2. Changes in accounting policy (other than arising from first-time adoption)

SFRS(I) 1-1.106(b) If a new accounting policy is adopted during the year, a sample disclosure of the effects of retrospective application on the
SFRS(I) 1-8.22 opening balance of each affected component of equity for the earliest prior period presented (i.e. January 1, 2017) on the
statement of changes in equity is as follows:
Share
Treasury Equity options Retained
Share capital shares reserves reserve earnings Total
$’000 $’000 $’000 $’000 $’000 $’000
(Note 36) (Note 37) (Note 38) (Note 38)
Balance as at January 1, 2017 152,098 - - - 1,819 153,917
Effects of adopting amendments

to SFRS(I) X [Note X] - - [XXX] - [XXX] [XXX]
Balance as at January 1, 2017

(as restated) 152,098 - - - [XXX] [XXX]

[Alt 1]
cash flows
Source

SFRS(I) 1-1.10(d)
SFRS(I) 1-1.51(b) Consolidated statement of cash flows(6)
LM 1207(5)(c)
SFRS(I) 1.21 Group

SFRS(I) 1-1.113 Note 2018 2017
SFRS(I) 1-1.51(d),(e) $’000 $’000
SFRS(I) 1-7.10 Operating activities
SFRS(I) 1-7.18(a) Cash receipts from customers 1,245,719 835,355

Cash paid to suppliers and employees (1,018,269) (817,842)
Cash generated from operations 227,450 17,513
SFRS(I) 1-7.35 Income taxes paid (5,589) (1,489)

SFRS(I) 1-7.31 Interest paid (35,459) (25,105)
Net cash from (used in) operating activities 186,402 (9,081)
SFRS(I) 1-7.10 Investing activities
SFRS(I) 1-7.31 Interest received 2,573 981

SFRS(I) 1-7.31 Dividends received from associates and joint venture - -
SFRS(I) 1-7.31 Dividends received from equity instruments designated at FVTOCI 486 452
SFRS(I) 1-7.16(d) Proceeds on disposal of equity instruments held at FVTOCI - -
SFRS(I) 1-7.39 Disposal of subsidiary 52 6,517 -
SFRS(I) 1-7.16(b) Proceeds on disposal of property, plant and equipment 799 4,000
SFRS(I) 1-7.16(a) Purchase of property, plant and equipment (71,485) (33,005)
SFRS(I) 1-7.16(c) Additions to investment in an associate (31,800) -
SFRS(I) 1-7.16(c) Purchases of financial assets mandatorily measured at FVTPL (863) (6,871)
SFRS(I) 1-7.16(a) Purchases of patents and trademarks (3,835) (18,617)
SFRS(I) 1-7.16(c) Purchases of quoted debt securities (6,100) -
SFRS(I) 1-7.16(a) Expenditure on product development (3,600) -
SFRS(I) 1-7.16(e) Additions to finance lease receivables (36,855) (23,472)
Repayments of finance lease receivables 21,948 11,291
SFRS(I) 1-7.39 Acquisition of subsidiary 53 (3,670) -
Net cash used in investing activities (125,885) (65,241)
37
[Alt 1]
cash flows
Source
SFRS(I) 1.21 Group

SFRS(I) 1-1.113 Note 2018 2017
SFRS(I) 1-1.51(d),(e) $’000 $’000
SFRS(I) 1-7.10 Financing activities
SFRS(I) 1-7.42A Acquisition of non-controlling interests in a subsidiary (350) -

SFRS(I) 1-7.31 Dividends paid (5,040) (8,040)
SFRS(I) 1-7.17(c) Proceeds from loans and borrowings 27 - 83,019
SFRS(I) 1-7.17(d) Repayments of borrowings 27 (70,756) -
SFRS(I) 1-7.17(e) Payments of obligations under finance leases 27 (2,242) (1,532)
SFRS(I) 1-7.17(c) Proceeds on issue of convertible loan notes 27 25,000 -
SFRS(I) 1-7.17(a) Proceeds on issue of shares 6,000 -
Loan from holding company 27 34 (543)
SFRS(I) 1-7.17(b) Purchase of treasury shares (500) -
Net cash (used in) from financing activities (47,854) 72,904
Net increase (decrease) in cash and cash equivalents 12,663 (1,418)
Cash and cash equivalents at beginning of year (734) 155
SFRS(I) 1-7.28 Effect of foreign exchange rate changes on the balance of (3,077) 529
cash held in foreign currencies(5)
SFRS(I) 1-7.45 Cash and cash equivalents at end of year (1)(2) 7 8,852 (734)
Guidance notes
The above illustrates the direct method of reporting cash flows from operating activities.

[Alt 2]
cash flows
Source

SFRS(I) 1-1.10(d)
SFRS(I) 1-1.51(b) Consolidated statement of cash flows(6)
LM 1207(5)(c)
SFRS(I) 1.21 Group

SFRS(I) 1-1.113 Note 2018 2017
SFRS(I) 1-1.51(d),(e) $’000 $’000
SFRS(I) 1-7.10 Operating activities
SFRS(I) 1-7.18(b) Profit before tax(3) 117,758 24,430

Adjustments for:
Share of profit of associates and joint venture (1,270) (1,517)
Investment revenue (739) (599)
Other gains and losses (574) (944)
Finance costs 46 32,363 25,338
Gain on disposal of discontinued operation 48 (8,493) -
Depreciation of property, plant and equipment 49 29,517 19,042
Impairment loss on plant and equipment 49 4,130 -
Amortisation of other intangible assets 49 2,614 846
Impairment of goodwill 49 463 -
Impairment losses, net of reversals, on financial assets
and other items subject to ECL 49 33 253
Share-based payment expenses 49 6,024 4,718
Fair value gain (loss) on investment property (500) -
Increase (decrease) in provisions 15,174 1,138
Inventories written down 2,340 1,820
Defined benefit costs 10,236 8,545
Operating cash flows before movements in working capital 209,076 83,070
Inventories (20,859) (31,495)

Trade and other receivables 18,783 (32,209)
Contract assets 2,852 (1,864)
Contract costs (14) (25)
Right to returned goods assets 46 (68)
Trade and other payables 37,702 23,148
Contract liabilities 478 377
Refund liability (56) 127
Utilisation of provision (8,710) (3,458)
Contribution or benefits paid or retirement benefits (11,848) (20,090)
Cash generated from operations 227,450 17,513
SFRS(I) 1-7.35 Income taxes paid (5,589) (1,489)
SFRS(I) 1-7.31 Interest paid (35,459) (25,105)
Net cash from (used in) operating activities 186,402 (9,081)
39
[Alt 2]
cash flows
Source
SFRS(I) 1.21 Group

SFRS(I) 1-1.113 Note 2018 2017
SFRS(I) 1-1.51(d),(e) $’000 $’000
SFRS(I) 1-7.10 Investing activities
SFRS(I) 1-7.31 Interest received 2,573 981

SFRS(I) 1-7.31 Dividends received from associates and joint venture - -
SFRS(I) 1-7.31 Dividends received from equity instruments designated at FVTOCI 486 452
SFRS(I) 1-7.16(d) Proceeds on disposal of equity instruments held at FVTOCI - -
SFRS(I) 1-7.39 Disposal of subsidiary 52 6,517 -
SFRS(I) 1-7.16(b) Proceeds on disposal of property, plant and equipment 799 4,000
SFRS(I) 1-7.16(a) Purchase of property, plant and equipment (71,485) (33,005)
SFRS(I) 1-7.16(c) Additions to investment in an associate (31,800) -
SFRS(I) 1-7.16(c) Purchases of financial assets mandatorily measured at FVTPL (863) (6,871)
SFRS(I) 1-7.16(a) Purchases of patents and trademarks (3,835) (18,617)
SFRS(I) 1-7.16(c) Purchases of quoted debt securities (6,100) -
SFRS(I) 1-7.16(a) Expenditure on product development (3,600) -
SFRS(I) 1-7.16(e) Additions to finance lease receivables (36,855) (23,472)
Repayments of finance lease receivables 21,948 11,291
SFRS(I) 1-7.39 Acquisition of subsidiary 53 (3,670) -
Net cash used in investing activities (125,885) (65,241)
SFRS(I) 1-7.10 Financing activities
SFRS(I) 1-7.42A Acquisition of non-controlling interests in a subsidiary (350) -

SFRS(I) 1-7.31 Dividends paid (5,040) (8,040)
SFRS(I) 1-7.17(c) Proceeds from loans and borrowings 27 - 83,019
SFRS(I) 1-7.17(d) Repayments of borrowings 27 (70,756) -
SFRS(I) 1-7.17(e) Payments of obligations under finance leases 27 (2,242) (1,532)
SFRS(I) 1-7.17(c) Proceeds on issue of convertible loan notes 27 25,000 -
SFRS(I) 1-7.17(a) Proceeds on issue of shares 6,000 -
Loan from holding company 27 34 (543)
SFRS(I) 1-7.17(b) Purchase of treasury shares (500) -
Net cash (used in) from financing activities (47,854) 72,904
Net increase (decrease) in cash and cash equivalents 12,663 (1,418)
Cash and cash equivalents at beginning of year (734) 155
SFRS(I) 1-7.28 Effect of foreign exchange rate changes on the balance of (3,077) 529
cash held in foreign currencies(5)
SFRS(I) 1-7.45 Cash and cash equivalents at end of year (1)(2) 7 8,852 (734)
Guidance notes
The above illustrates the indirect method of reporting cash flows from operating activities.

cash flows
Source
Guidance notes – Consolidated statement of cash flows
SFRS(I) 1-7.48 1. Restricted cash and cash equivalents

SFRS(I) 1-7.49 An entity shall disclose, together with a commentary by management, the amount of significant cash and cash equivalent
balances held by the enterprise that are not available for use by the group. Examples include cash and cash equivalent
balances held by a subsidiary that operates in a country where exchange controls or other legal restrictions apply where
the balances are not available for general use by the parent or other subsidiaries.
SFRS(I) 1-7.6 2. Definition of cash and cash equivalents

An investment normally qualifies as a cash equivalent only when it is a short-term, highly liquid investment that is readily
convertible to known amounts of cash, and which is subject to an insignificant risk of changes in value.
3. Reconciliation to statement of comprehensive income

The balance reflected as profit before income tax in the consolidated statement of cash flows (indirect method) is derived
from the aggregate of profit before tax from discontinued operation $4,000 (2017: $4,560) (Note 48), the gain on disposal
of discontinued operation $8,493 (2017: $Nil) (Note 48) and profit before tax from continuing operations $105,265 (2017:
$19,870) (statement of profit or loss and other comprehensive income).
SFRS(I) 1-7.20(b) 4. Net unrealised foreign exchange gains or losses (if material)
If unrealised foreign exchange gains or losses recognised in profit or loss for the year arises from cash flow items other
than operating cash flows, they should be included as an adjustment to profit or loss before tax, in arriving at the operating
cash flows under the indirect method.
SFRS(I) 1-7.28 5. Effects of exchange rate changes on the balance of cash

Unrealised gains and losses arising from changes in foreign currency exchange rates are not cash flows. However,
the effect of exchange rate changes on cash and cash equivalents held or due in a foreign currency is reported in the cash
flow statement in order to reconcile cash and cash equivalents at the beginning and the end of the period. This amount is
presented separately from cash flows from operating, investing and financing activities and includes the differences, if any,
had those cash flows been reported at end of period exchange rates.
6. Terminology used in the Financial Statements

The use of title “Statement of Cash Flows” of the Financial Statements is not mandatory. The reference in the independent
auditor’s report should be updated accordingly.
SFRS(I) 1-7.44A- 7. SFRS(I) 1-7 Statement of Cash Flows

44E SFRS(I) 1-7 requires 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.
A reconciliation of liabilities arising from financing activities is provided in Note 27.
41
Notes to financial statements
Source

December 31, 2018
1. General
SFRS(I) 1-1.138(a) The company (Registration Number 200001999A) is incorporated in Singapore with its principal place of business and
registered office at 1 Gaap Avenue, #01-00, GAAP Building, Singapore 099001. The company is listed on the Singapore
SFRS(I) 1-1.51(d) Exchange Securities Trading Limited. The financial statements are expressed in Singapore dollars.
SFRS(I) 1-1.138(b) The principal activity of the company is that of investment holding.
The principal activities of the subsidiaries are disclosed in Note 22.
SFRS(I) 1-10.17 The consolidated financial statements of the group and statement of financial position and statement of changes in equity
of the company for the year ended December 31, 2018 were authorised for issue by the Board of Directors on March 15,
2019.
For all periods up to and including the year ended December 31, 2017, the financial statements were prepared in accordance
with the previous framework, Financial Reporting Standards in Singapore (“FRSs”). These financial statements for the year
ended December 31, 2018 are the first set that the group and the company have prepared in accordance with Singapore
Financial Reporting Standards (International) (“SFRS(I)”). Details of first-time adoption of SFRS(I) are included in Note 58.
[Entity may choose to present and disclose the details and effects arising from the adoption of the new financial reporting
framework in Note 2.]
SFRS(I) 1-1.25 Guidance notes
When management is aware, in making its assessment, of material uncertainties related to events or conditions that may
cast significant doubt upon the company’s ability to continue as a going concern, the company shall disclose those
uncertainties.
2. Summary of significant accounting policies
Guidance notes
SFRS(I) 1-1.17(b) Entities are required to disclose in the summary of significant accounting policies the measurement basis (or bases) used
SFRS(I) 1-1.112(a) in preparing the financial statements and the other accounting policies used that are relevant to an understanding of the
SFRS(I) 1- financial statements. An accounting policy may be significant because of the nature of the entity’s operations even if
1.117(a),(b) amounts for the current and prior periods are not material.
In deciding whether a particular accounting policy should be disclosed, management considers whether disclosure would
assist users in understanding how transactions, other events and conditions are reflected in the reported financial
performance and financial position. Disclosure of particular accounting policies is especially useful to users when those
policies are selected from alternatives allowed in SFRS(I).
Each entity considers the nature of its operations and the policies that users of its financial statements would expect to be
disclosed for that type of entity. It is also appropriate to disclose each significant accounting policy that is not specifically
required by SFRS(I)s, but that is selected and applied in accordance with SFRS(I) 1-8 Accounting Policies, Changes in
Accounting Estimates and Errors.

Source
SFRS(I) 1-1.10(e) GAAP Singapore Ltd and its subsidiaries

SFRS(I) 1-1.51(a)-(c)
SFRS(I) 1-1.113 Notes to financial statements
December 31, 2018
SFRS(I) 1-1 Presentation of Financial Statements
Materiality and aggregation

SFRS(I) 1-1 clarifies that useful information should not be obscured by aggregating or disaggregating information; and
that materiality considerations apply to primary statements, notes and any specific disclosure requirements in SFRS(I)s.
SFRS(I) 1-1.30A Decision on how information is aggregated in the financial statements, including the notes, should take into consideration
all relevant facts and circumstances. Understandability of financial statements should not be reduced by obscuring material
information with immaterial information or by aggregating material items that have different natures or functions.
Notes
SFRS(I) 1-1 also clarifies that entities have flexibility when designing the structure of the notes and provides guidance on
how to determine a systematic order of the notes.
SFRS(I) 1-1.113 Notes on significant accounting policies should be presented in a systematic manner, considering the effect on the
understandability and comparability of financial statements. The company shall cross-reference each item in the
statements of financial position and in the statement(s) of profit or loss and other comprehensive income, and in the
statements of changes in equity and of cash flows to any related information in the notes.
SFRS(I) 1-1.114 Examples of systematic ordering or grouping of the notes include:

(a) giving prominence to the areas of its activities that the company considers to be most relevant to an understanding
of its financial performance and financial position, such as grouping together information about particular operating
activities;
(b) grouping together information about items measured similarly such as assets measured at fair value; or
(c) following the order of line items in the statement(s) of profit or loss and other comprehensive income and the
statement of financial position.
SFRS(I) 1-1.16 2.1 Basis of accounting – The financial statements have been prepared in accordance with the historical cost basis,
except as disclosed in the accounting policies below, and are drawn up in accordance with the provisions of the Singapore
Companies Act and Singapore Financial Reporting Standards (International) (“SFRS(I)s”).
SFRS(I) 1-1.17(b) Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.
SFRS(I) 1-1.112(a)
SFRS(I) 1-
1.117(a),(b)
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date, regardless of whether that price is directly observable or estimated using
another valuation technique. In estimating the fair value of an asset or a liability, the group takes into account the
characteristics of the asset or liability which market participants would take into account when pricing the asset or liability
at the measurement date. Fair value for measurement and/or disclosure purposes in these consolidated financial statements
is determined on such a basis, except for share-based payment transactions that are within the scope of
SFRS(I) 2 Share-based Payment, leasing transactions that are within the scope of SFRS(I) 1-17 Leases, and measurements
that have some similarities to fair value but are not fair value, such as net realisable value in SFRS(I) 1-2 Inventories or
value in use in SFRS(I) 1-36 Impairment of Assets.
In addition, for financial reporting purposes, fair value measurements are categorised into Level 1, 2 or 3 based on the
degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value
measurement in its entirety, which are described as follows:
a) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access
at the measurement date;
b) Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability,
either directly or indirectly; and
c) Level 3 inputs are unobservable inputs for the asset or liability.

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SFRS(I) 10.7 2.2 Basis of consolidation - The consolidated financial statements incorporate the financial statements of the company
and entities (including structured entities) controlled by the company and its subsidiaries. Control is achieved when the
company:
 Has power over the investee;
 Is exposed, or has rights, to variable returns from its involvement with the investee; and
 Has the ability to use its power to affect its returns.
SFRS(I) 10.8 The company reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to
one or more of the three elements of control listed above.
SFRS(I) 10.B38 When the company has less than a majority of the voting rights of an investee, it has power over the investee when the
voting rights are sufficient to give it the practical ability to direct the relevant activities of the investee unilaterally.
The company considers all relevant facts and circumstances in assessing whether or not the company’s voting rights in an
investee are sufficient to give it power, including:
 The size of the company’s holding of voting rights relative to the size and dispersion of holdings of the other vote holders;
 Potential voting rights held by the company, other vote holders or other parties;
 Rights arising from other contractual arrangements; and
 Any additional facts and circumstances that indicate that the company has, or does not have, the current ability to direct
the relevant activities at the time that decisions need to be made, including voting patterns at previous shareholders’
meetings.
SFRS(I) 10.B88 Consolidation of a subsidiary begins when the company obtains control over the subsidiary and ceases when the company
loses control of the subsidiary. Specifically, income and expenses of a subsidiary acquired or disposed of during the year are
included in the consolidated statement of profit or loss and other comprehensive income from the date the company gains
control until the date when the company ceases to control the subsidiary.
SFRS(I) 10.B94 Profit or loss and each component of other comprehensive income are attributed to the owners of the company and to the
non-controlling interests. Total comprehensive income of subsidiaries is attributed to the owners of the company and to the
non-controlling interests even if this results in the non-controlling interests having a deficit balance.
SFRS(I) 10.B87 When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies in line
with the group’s accounting policies.
2.2.1 Changes in the group’s ownership interests in existing subsidiaries

SFRS(I) 10.B96 Changes in the group’s ownership interests in subsidiaries that do not result in the group losing control over the subsidiaries
are accounted for as equity transactions. The carrying amounts of the group’s interests and the non-controlling interests are
adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the amount by which
the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognised directly in
equity and attributed to owners of the company.
SFRS(I) 10.B97 When the group loses control of a subsidiary, a gain or loss is recognised in profit or loss and is calculated as the difference
SFRS(I) 10.B98 between (i) the aggregate of the fair value of the consideration received and the fair value of any retained interest and
SFRS(I) 10.B99 (ii) the previous carrying amount of the assets (including goodwill), and liabilities of the subsidiary and any non-controlling
interests. All amounts previously recognised in other comprehensive income in relation to that subsidiary are accounted for
as if the group had directly disposed of the related assets or liabilities of the subsidiary (i.e. reclassified to profit or loss or
transferred to another category of equity as specified/permitted by applicable SFRS(I)s). The fair value of any investment
retained in the former subsidiary at the date when control is lost is regarded as the fair value on initial recognition for
subsequent accounting under SFRS(I) 9, or when applicable, the cost on initial recognition of an investment in an associate
or a joint venture.
SFRS(I) 1-27.10 In the company’s separate financial statements, investments in subsidiaries, associates and joint ventures are carried at
cost less any impairment in net recoverable value that has been recognised in profit or loss.

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December 31, 2018
SFRS(I) 3.4 2.3 Business combinations - Acquisitions of subsidiaries and businesses are accounted for using the acquisition method.
SFRS(I) 3.37 The consideration for each acquisition is measured at the aggregate of the acquisition date fair values of assets given,
SFRS(I) 3.38 liabilities incurred by the group to the former owners of the acquiree, and equity interests issued by the group in exchange
SFRS(I) 3.53 for control of the acquiree. Acquisition-related costs are recognised in profit or loss as incurred.
SFRS(I) 3.39 Where applicable, the consideration for the acquisition includes any asset or liability resulting from a contingent consideration
SFRS(I) 3.58 arrangement, measured at its acquisition-date fair value. Subsequent changes in such fair values are adjusted against the
cost of acquisition where they qualify as measurement period adjustments (see below). The subsequent accounting for
changes in the fair value of the contingent consideration that do not qualify as measurement period adjustments depends
on how the contingent consideration is classified. Contingent consideration that is classified as equity is not remeasured at
subsequent reporting dates and its subsequent settlement is accounted for within equity. Contingent consideration that is
classified as an asset or a liability is remeasured at subsequent reporting dates at fair value, with changes in fair value
recognised in profit or loss.
SFRS(I) 3.42 Where a business combination is achieved in stages, the group’s previously held interests in the acquired entity are
remeasured to fair value at the acquisition date (i.e. the date the group attains control) and the resulting gain or loss, if any,
is recognised in profit or loss. Amounts arising from interests in the acquiree prior to the acquisition date that have previously
been recognised in other comprehensive income are reclassified to profit or loss, where such treatment would be appropriate
if that interest were disposed of.
SFRS(I) 3.18 The acquiree’s identifiable assets, liabilities and contingent liabilities that meet the conditions for recognition under the
SFRS(I) 3.21 SFRS(I) are recognised at their fair value at the acquisition date, except that:
SFRS(I) 3.24  Deferred tax assets or liabilities and liabilities or assets related to employee benefit arrangements are recognised and
SFRS(I) 3.26 measured in accordance with SFRS(I) 1-12 Income Taxes and SFRS(I) 1-19 Employee Benefits respectively;
SFRS(I) 3.30  Liabilities or equity instruments related to share-based payment transactions of the acquiree or the replacement of an
acquiree’s share-based payment awards transactions with share-based payment awards transactions of the acquirer in
accordance with the method in SFRS(I) 2 Share-based Payment at the acquisition date; and
SFRS(I) 3.31  Assets (or disposal groups) that are classified as held for sale in accordance with SFRS(I) 5 Non-current Assets Held for
Sale and Discontinued Operations are measured in accordance with that standard.
Non-controlling interests that are present ownership interests and entitle their holders to a proportionate share of the entity’s
net assets in the event of liquidation may be initially measured either at fair value or at the non-controlling interests’
proportionate share of the recognised amounts of the acquiree’s identifiable net assets. The choice of measurement basis is
made on a transaction-by-transaction basis. Other types of non-controlling interests are measured at fair value or, when
applicable, on the basis specified in another SFRS(I).
SFRS(I) 3.45 If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination
occurs, the group reports provisional amounts for the items for which the accounting is incomplete. Those provisional
amounts are adjusted during the measurement period (see below), or additional assets or liabilities are recognised, to reflect
new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have
affected the amounts recognised as of that date.
SFRS(I) 3.46 The measurement period is the period from the date of acquisition to the date the group obtains complete information about
facts and circumstances that existed as of the acquisition date and is subject to a maximum of one year from acquisition
date.
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SFRS(I) 7.21 2.4 Financial instruments - Financial assets and financial liabilities are recognised on the statement of financial position
when the group becomes a party to the contractual provisions of the instruments.
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to
the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair
value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as
appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial
liabilities at fair value through profit or loss are recognised immediately in profit or loss.
SFRS(I) 7.21 2.4.1 Financial assets
SFRS(I) 7.B5(c) All financial assets are recognised and de-recognised on a trade date basis where the purchase or sale of financial assets is
under a contract whose terms require delivery of assets within the time frame established by the market concerned.
All recognised financial assets are subsequently measured in their entirety at either amortised cost or fair value, depending
on the classification of the financial assets.
2.4.1.1 Classification of financial assets

Debt instruments that meet the following conditions are subsequently measured at amortised cost:
 the financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual
cash flows; and
 the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal
and interest on the principal amount outstanding.
Debt instruments that meet the following conditions are subsequently measured at fair value through other comprehensive
income (FVTOCI):
 the financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows
and selling the financial assets; and
 the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal
and interest on the principal amount outstanding.
By default, all other financial assets are subsequently measured at fair value through profit or loss (FVTPL).
Despite the aforegoing, the group may make the following irrevocable election/designation at initial recognition of a financial
asset:
 the group may irrevocably elect to present subsequent changes in fair value of an equity investment in other
comprehensive income if certain criteria are met; and
 the group may irrevocably designate a debt investment that meets the amortised cost or FVTOCI criteria as measured
at FVTPL if doing so eliminates or significantly reduces an accounting mismatch.

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December 31, 2018
Amortised cost and effective interest method

The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating interest
income over the relevant period.
For financial instruments other than purchased or originated credit-impaired financial assets, the effective interest rate is
the rate that exactly discounts estimated future cash receipts (including all fees and points paid or received that form an
integral part of the effective interest rate, transaction costs and other premiums or discounts) excluding expected credit
losses, through the expected life of the debt instrument, or, where appropriate, a shorter period, to the gross carrying
amount of the debt instrument on initial recognition. For purchased or originated credit-impaired financial assets, a credit-
adjusted effective interest rate is calculated by discounting the estimated future cash flows, including expected credit losses,
to the amortised cost of the debt instrument on initial recognition.
The amortised cost of a financial asset is the amount at which the financial asset is measured at initial recognition minus
the principal repayments, plus the cumulative amortisation using the effective interest method of any difference between
that initial amount and the maturity amount, adjusted for any loss allowance. On the other hand, the gross carrying amount
of a financial asset is the amortised cost of a financial asset before adjusting for any loss allowance.
SFRS(I) 7.B5(e) Interest income is recognised using the effective interest method for debt instruments measured subsequently at amortised
cost and at FVTOCI. For financial instruments other than purchased or originated credit-impaired financial assets, interest
income is calculated by applying the effective interest rate to the gross carrying amount of a financial asset, except for
financial assets that have subsequently become credit-impaired. For financial assets that have subsequently become credit-
impaired, interest income is recognised by applying the effective interest rate to the amortised cost of the financial asset.
If, in subsequent reporting periods, the credit risk on the credit-impaired financial instrument improves so that the financial
asset is no longer credit-impaired, interest income is recognised by applying the effective interest rate to the gross carrying
amount of the financial asset.
For purchased or originated credit-impaired financial assets, the group recognises interest income by applying the credit-
adjusted effective interest rate to the amortised cost of the financial asset from initial recognition. The calculation does not
revert to the gross basis even if the credit risk of the financial asset subsequently improves so that the financial asset is no
longer credit-impaired.
Interest income is recognised in profit or loss and is included in the "investment revenue" line item.
Debt instruments classified as at FVTOCI

Listed redeemable notes held by the group are classified as at FVTOCI. Fair value is determined in the manner described in
Note 4(c)(vii). The listed redeemable notes are initially measured at fair value plus transaction costs. Subsequently, changes
in the carrying amount of these listed redeemable notes as a result of foreign exchange gains and losses, impairment gains
or losses, and interest income calculated using the effective interest method are recognised in profit or loss. The amounts
that are recognised in profit or loss are the same as the amounts that would have been recognised in profit or loss if these
listed redeemable notes had been measured at amortised cost. All other changes in the carrying amount of these listed
redeemable notes are recognised in other comprehensive income and accumulated under the heading of investments
revaluation reserve. When these listed redeemable notes are derecognised, the cumulative gains or losses previously
recognised in other comprehensive income are reclassified to profit or loss.
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Equity instruments designated as at FVTOCI

On initial recognition, the group may make an irrevocable election (on an instrument-by-instrument basis) to designate
investments in equity instruments as at FVTOCI. Designation at FVTOCI is not permitted if the equity investment is held for
trading or if it is contingent consideration recognised by an acquirer in a business combination to which SFRS(I) 3 applies.
A financial asset is held for trading if:

 it has been acquired principally for the purpose of selling it in the near term; or
 on initial recognition it is part of a portfolio of identified financial instruments that the group manages together and has
evidence of a recent actual pattern of short-term profit-taking; or
 it is a derivative (except for a derivative that is a financial guarantee contract or a designated and effective hedging
instrument).
Investments in equity instruments at FVTOCI are initially measured at fair value plus transaction costs. Subsequently, they
are measured at fair value with gains and losses arising from changes in fair value recognised in other comprehensive income
and accumulated in the investments revaluation reserve. The cumulative gain or loss will not be reclassified to profit or loss
on disposal of the equity investments, instead, they will be transferred to retained earnings.
The group has designated all investments in equity instruments that are not held for trading as at FVTOCI on initial
application of SFRS(I) 9 (see Note 25).
Dividends on these investments in equity instruments are recognised in profit or loss when the group’s right to receive the
dividends is established, unless the dividends clearly represent a recovery of part of the cost of the investment. Dividends
are included in the “investment revenue” line item in profit or loss.
Financial assets at FVTPL

Financial assets that do not meet the criteria for being measured at amortised cost or FVTOCI are measured at FVTPL.
Specifically:
 Investments in equity instruments are classified as at FVTPL, unless the group designates an equity investment that is
neither held for trading nor a contingent consideration arising from a business combination as at FVTOCI on initial
recognition.
 Debt instruments that do not meet the amortised cost criteria or the FVTOCI criteria are classified as at FVTPL. In
addition, debt instruments that meet either the amortised cost criteria or the FVTOCI criteria may be designated as at
FVTPL upon initial recognition if such designation eliminates or significantly reduces a measurement or recognition
inconsistency that would arise from measuring assets or liabilities or recognising the gains and losses on them on
different bases. The group has not designated any debt instruments as at FVTPL.
SFRS(I) 7.B5(e) Financial assets at FVTPL are measured at fair value as at each reporting date, with any fair value gains or losses recognised
in profit or loss to the extent they are not part of a designated hedging relationship. The net gain or loss recognised in profit
or loss includes any dividend or interest earned on the financial asset and is included in the “other gains and losses” line
item (Note 45). Fair value is determined in the manner described in Note 4(c)(vii).
2.4.1.2 Foreign exchange gains and losses

The carrying amount of financial assets that are denominated in a foreign currency is determined in that foreign currency
and translated at the spot rate as at each reporting date. Specifically,
 for financial assets measured at amortised cost that are not part of a designated hedging relationship, exchange
differences are recognised in profit or loss in the “other gains and losses” line item;
 for debt instruments measured at FVTOCI that are not part of a designated hedging relationship, exchange differences
on the amortised cost of the debt instrument are recognised in profit or loss in the “other gains and losses” line item;
 for financial assets measured at FVTPL that are not part of a designated hedging relationship, exchange differences are
recognised in profit or loss in the “other gains and losses” line item; and
 for equity instruments measured at FVTOCI, exchange differences are recognised in other comprehensive income in the
investments revaluation reserve.

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December 31, 2018
2.4.1.3 Impairment of financial assets

The group recognises a loss allowance for expected credit losses (“ECL”) on investments in debt instruments that are
measured at amortised cost or at FVTOCI, lease receivables, contract assets, as well as on loan commitments and financial
guarantee contracts. No impairment loss is recognised for investments in equity instruments. The amount of expected credit
losses is updated at each reporting date to reflect changes in credit risk since initial recognition of the respective financial
instrument.
The group always recognises lifetime ECL for trade receivables, contract assets and lease receivables. The expected credit
losses on these financial assets are estimated using a provision matrix based on the group’s historical credit loss experience,
adjusted for factors that are specific to the debtors, general economic conditions and an assessment of both the current as
well as the forecast direction of conditions at the reporting date, including time value of money where appropriate.
For all other financial instruments, the group recognises lifetime ECL when there has been a significant increase in credit
risk since initial recognition. If, on the other hand, the credit risk on the financial instrument has not increased significantly
since initial recognition, the group measures the loss allowance for that financial instrument at an amount equal to 12m
ECL. The assessment of whether lifetime ECL should be recognised is based on significant increases in the likelihood or risk
of a default occurring since initial recognition instead of on evidence of a financial asset being credit-impaired at the reporting
date or an actual default occurring.
Lifetime ECL represents the expected credit losses that will result from all possible default events over the expected life of
a financial instrument. In contrast, 12m ECL represents the portion of lifetime ECL that is expected to result from default
events on a financial instrument that are possible within 12 months after the reporting date.
Significant increase in credit risk

SFRS(I) 7.35F(a) In assessing whether the credit risk on a financial instrument has increased significantly since initial recognition , the group
SFRS(I) 7.35G(b) compares the risk of a default occurring on the financial instrument as at the reporting date with the risk of a default
occurring on the financial instrument as at the date of initial recognition. In making this assessment, the group considers
both quantitative and qualitative information that is reasonable and supportable, including historical experience and forward-
looking information that is available without undue cost or effort. Forward-looking information considered includes the future
prospects of the industries in which the group’s debtors operate, obtained from economic expert reports, financial analysts,
governmental bodies, relevant think-tanks and other similar organisations, as well as consideration of various external
sources of actual and forecast economic information that relate to the group’s core operations, namely the leisure goods
and electronic equipment market, the residential properties construction industry and the IT software business.
SFRS(I) 7.35F(a) In particular, the following information is taken into account when assessing whether credit risk has increased significantly
SFRS(I) 7.35G(a)(ii) since initial recognition:
 [an actual or expected significant deterioration in the financial instrument’s external (if available) or internal credit
rating;
 significant deterioration in external market indicators of credit risk for a particular financial instrument, e.g. a significant
increase in the credit spread, the credit default swap prices for the debtor, or the length of time or the extent to which
the fair value of a financial asset has been less than its amortised cost;
 existing or forecast adverse changes in business, financial or economic conditions that are expected to cause a significant
decrease in the debtor’s ability to meet its debt obligations;
 an actual or expected significant deterioration in the operating results of the debtor;
 significant increases in credit risk on other financial instruments of the same debtor;
 an actual or expected significant adverse change in the regulatory, economic, or technological environment of the debtor
that results in a significant decrease in the debtor’s ability to meet its debt obligations.]
Irrespective of the outcome of the above assessment, the group presumes that the credit risk on a financial asset has
increased significantly since initial recognition when contractual payments are more than 30 days past due, unless the group
has reasonable and supportable information that demonstrates otherwise.
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SFRS(I) 7.35F(a)(i) Despite the aforegoing, the group assumes that the credit risk on a financial instrument has not increased significantly since
initial recognition if the financial instrument is determined to have low credit risk at the reporting date. A financial instrument
is determined to have low credit risk if i) the financial instrument has a low risk of default, ii) the borrower has a strong
capacity to meet its contractual cash flow obligations in the near term and iii) adverse changes in economic and business
conditions in the longer term may, but will not necessarily, reduce the ability of the borrower to fulfil its contractual cash
flow obligations. The group considers a financial asset to have low credit risk when it has an internal or external credit rating
of “investment grade” as per globally understood definition.
For loan commitments and financial guarantee contracts, the date that the group becomes a party to the irrevocable
commitment is considered to be the date of initial recognition for the purposes of assessing the financial instrument for
impairment. In assessing whether there has been a significant increase in the credit risk since initial recognition of a loan
commitment, the group considers changes in the risk of a default occurring on the loan to which a loan commitment relates;
for financial guarantee contracts, the group considers the changes in the risk that the specified debtor will default on the
contract.
The group regularly monitors the effectiveness of the criteria used to identify whether there has been a significant increase
in credit risk and revises them as appropriate to ensure that the criteria are capable of identifying significant increase in
credit risk before the amount becomes past due.
Definition of default
SFRS(I) 7.35F(b) The group considers the following as constituting an event of default for internal credit risk management purposes as
historical experience indicates that receivables that meet either of the following criteria are generally not recoverable.
 when there is a breach of financial covenants by the counterparty; or
 information developed internally or obtained from external sources indicates that the debtor is unlikely to pay its
creditors, including the group, in full (without taking into account any collaterals held by the group).
Irrespective of the above analysis, the group considers that default has occurred when a financial asset is more than 90
days past due unless the group has reasonable and supportable information to demonstrate that a more lagging default
criterion is more appropriate.
Credit-impaired financial assets

SFRS(I) 7.35F(d) A financial asset is credit-impaired when one or more events that have a detrimental impact on the estimated future cash
SFRS(I) flows of that financial asset have occurred. Evidence that a financial asset is credit-impaired includes observable data about
7.35G(a)(iii) the following events:
a) significant financial difficulty of the issuer or the borrower;
b) a breach of contract, such as a default or past due event;
c) the lender(s) of the borrower, for economic or contractual reasons relating to the borrower’s financial difficulty, having
granted to the borrower a concession(s) that the lender(s) would not otherwise consider;
d) it is becoming probable that the borrower will enter bankruptcy or other financial reorganisation; or
e) the disappearance of an active market for that financial asset because of financial difficulties.
Write-off policy
SFRS(I) 7.35F(e) The group writes off a financial asset when there is information indicating that the counterparty is in severe financial difficulty
and there is no realistic prospect of recovery, e.g. when the counterparty has been placed under liquidation or has entered
into bankruptcy proceedings, or in the case of trade receivables, when the amounts are over two years past due, whichever
occurs sooner. Financial assets written off may still be subject to enforcement activities under the group’s recovery
procedures, taking into account legal advice where appropriate. Any recoveries made are recognised in profit or loss.

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December 31, 2018
Measurement and recognition of expected credit losses

SFRS(I) 7.35G(a) The measurement of expected credit losses is a function of the probability of default, loss given default (i.e. the magnitude
of the loss if there is a default) and the exposure at default. The assessment of the probability of default and loss given
default is based on historical data adjusted by forward-looking information as described above. As for the exposure at
default, for financial assets, this is represented by the assets’ gross carrying amount at the reporting date; for loan
commitments and financial guarantee contracts, the exposure includes the amount drawn down as at the reporting date,
together with any additional amounts expected to be drawn down in the future by default date determined based on historical
trend, the group’s understanding of the specific future financing needs of the debtors, and other relevant forward-looking
information.
For financial assets, the expected credit loss is estimated as the difference between all contractual cash flows that are due
to the group in accordance with the contract and all the cash flows that the group expects to receive, discounted at the
original effective interest rate. For a lease receivable, the cash flows used for determining the expected credit losses is
consistent with the cash flows used in measuring the lease receivable in accordance with SFRS(I) 1-17 Leases.
Guidance notes – Basis of measurement and recognition of expected credit losses for financial guarantee
contract and undrawn loan commitments
Include where applicable. For example:
For a financial guarantee contract, as the group is required to make payments only in the event of a default by the debtor
in accordance with the terms of the instrument that is guaranteed, the expected loss allowance is the expected payments
to reimburse the holder for a credit loss that it incurs less any amounts that the group expects to receive from the holder,
the debtor or any other party.
For undrawn loan commitments, the expected credit loss is the present value of the difference between the contractual
cash flows that are due to the group if the holder of the loan commitment draws down the loan, and the cash flows that
the group expects to receive if the loan is drawn down.
SFRS(I) 7.35F(c) Where lifetime ECL is measured on a collective basis to cater for cases where evidence of significant increases in credit ris k
SFRS(I) 7.35G(a) at the individual instrument level may not yet be available, the financial instruments are grouped on the following basis:
 Nature of financial instruments (i.e. the group’s trade and other receivables, finance lease receivables and amounts due
from customers are each assessed as a separate group. Loans to related parties are assessed for expected credit losses
on an individual basis);
 Past-due status;
 Nature, size and industry of debtors;
 Nature of collaterals for finance lease receivables; and
 External credit ratings where available.
The grouping is regularly reviewed by management to ensure the constituents of each group continue to share similar credit
risk characteristics.
If the group has measured the loss allowance for a financial instrument at an amount equal to lifetime ECL in the previous
reporting period, but determines at the current reporting date that the conditions for lifetime ECL are no longer met, the
group measures the loss allowance at an amount equal to 12m ECL at the current reporting date.
The group recognises an impairment gain or loss in profit or loss for all financial instruments with a corresponding adjustment
to their carrying amount through a loss allowance account, except for investments in debt instruments that are measured
at FVTOCI, for which the loss allowance is recognised in other comprehensive income and accumulated in the investment
revaluation reserve, and does not reduce the carrying amount of the financial asset in the statement of financial position.
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Derecognition of financial assets

The group derecognises a financial asset only when the contractual rights to the cash flows from the asset expire, or when
it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party. If the
group neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the
transferred asset, the group recognises its retained interest in the asset and an associated liability for amounts it may have
to pay. If the group retains substantially all the risks and rewards of ownership of a transferred financial asset, the group
continues to recognise the financial asset and also recognises a collateralised borrowing for the proceeds received.
On derecognition of a financial asset measured at amortised cost, the difference between the asset’s carrying amount and
the sum of the consideration received and receivable is recognised in profit or loss. In addition, on derecognition of an
investment in a debt instrument classified as at FVTOCI, the cumulative gain or loss previously accumulated in the
investments revaluation reserve is reclassified to profit or loss. In contrast, on derecognition of an investment in equity
instrument which the group has elected on initial recognition to measure at FVTOCI, the cumulative gain or loss previously
accumulated in the investments revaluation reserve is not reclassified to profit or loss, but is transferred to retained earnings.
SFRS(I) 7.21 2.4.2 Financial liabilities and equity instruments
2.4.2.1 Classification as debt or equity

Debt and equity instruments issued by a group entity are classified as either financial liabilities or as equity in accordance
with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.
2.4.2.2 Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its
liabilities. Equity instruments issued by a group entity are recognised at the proceeds received, net of direct issue costs.
Repurchase of the company’s own equity instruments is recognised and deducted directly in equity. No gain or loss is
recognised in profit or loss on the purchase, sale, issue or cancellation of the company’s own equity instruments.
2.4.2.3 Compound instruments

The component parts of compound instruments (convertible notes) issued by the company are classified separately as
financial liabilities and equity in accordance with the substance of the contractual arrangements and the definitions of a
financial liability and an equity instrument. A conversion option that will be settled by the exchange of a fixed amount of
cash or another financial asset for a fixed number of the company’s own equity instruments is an equity instrument.
At the date of issue, the fair value of the liability component is estimated using the prevailing market interest rate for similar
non-convertible instruments. This amount is recorded as a liability on an amortised cost basis using the effective interest
method until extinguished upon conversion or at the instrument’s maturity date.
A conversion option classified as equity is determined by deducting the amount of the liability component from the fair value
of the compound instrument as a whole. This is recognised and included in equity, net of income tax effects, and is not
subsequently remeasured. In addition, the conversion option classified as equity will remain in equity until the conversion
option is exercised, in which case, the balance recognised in equity will be transferred to [share premium/other equity
[describe]]. Where the conversion option remains unexercised at the maturity date of the convertible notes, the balance
recognised in equity will be transferred to [retained profits/other equity [describe]]. No gain or loss is recognised in profit
or loss upon conversion or expiration of the conversion option.
Transaction costs that relate to the issue of the convertible notes are allocated to the liability and equity components in
proportion to the allocation of the gross proceeds. Transaction costs relating to the equity component are recognised directly
in equity. Transaction costs relating to the liability component are included in the carrying amount of the liability component
and are amortised over the lives of the convertible notes using the effective interest method.

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December 31, 2018
2.4.2.4 Financial liabilities

All financial liabilities are subsequently measured at amortised cost using the effective interest method or at FVTPL.
However, financial liabilities that arise when a transfer of a financial asset does not qualify for derecognition or when the
continuing involvement approach applies, financial guarantee contracts issued by the group, and commitments issued by
the group to provide a loan at below-market interest rate are measured in accordance with the specific accounting policies
set out below.
Financial liabilities at FVTPL

Financial liabilities are classified as at FVTPL when the financial liability is 1) contingent consideration of an acquirer in a
business combination to which SFRS(I) 3 applies, 2) held for trading, or 3) it is designated as at FVTPL.
A financial liability is classified as held for trading if:

 it has been acquired principally for the purpose of repurchasing it in the near term; or
 on initial recognition it is part of a portfolio of identified financial instruments that the group manages together and has
a recent actual pattern of short-term profit-taking; or
 it is a derivative, except for a derivative that is a financial guarantee contract or a designated and effective hedging
instrument.
A financial liability other than a financial liability held for trading or contingent consideration of an acquirer in a business
combination may be designated as at FVTPL upon initial recognition if:
 such designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise
arise; or
 the financial liability forms part of a group of financial assets or financial liabilities or both, which is managed and its
performance is evaluated on a fair value basis, in accordance with the group’s documented risk management or
investment strategy, and information about the grouping is provided internally on that basis; or
 it forms part of a contract containing one or more embedded derivatives, and IFRS 9 permits the entire combined
contract to be designated as at FVTPL.
SFRS(I) 7.B5(e) Financial liabilities at FVTPL are stated at fair value with any gains or losses arising on changes in fair value recognised in
profit or loss to the extent that they are not part of a designated hedging relationship. The net gain or loss recognised in
profit or loss incorporates any interest paid on the financial liabilities and is included in the “other gains and losses” line item
(Note 45).
However, for financial liabilities that are designated as at FVTPL, the amount of change in the fair value of the financial
liability that is attributable to changes in the credit risk of that liability is recognised in other comprehensive income, unless
the recognition of the effects of changes in the liability’s credit risk in other comprehensive income would create or enlarge
an accounting mismatch in profit or loss. The remaining amount of change in the fair value of liability is recognised in profit
or loss. Changes in fair value attributable to a financial liability’s credit risk that are recognised in other comprehensive
income are not subsequently reclassified to profit or loss; instead, they are transferred to retained earnings upon
derecognition of the financial liability.
Gains or losses on financial guarantee contracts and loan commitments issued by the group that are designated by the group
as at fair value through profit or loss are recognised in profit or loss.
Fair value is determined in the manner described in Note 4(c)(vii).
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Financial liabilities subsequently measured at amortised cost

Financial liabilities that are not 1) contingent consideration of an acquirer in a business combination, 2) held-for-trading, or
3) designated as at FVTPL, are subsequently measured at amortised cost using the effective interest method.
The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating intere st
expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash
payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction
costs and other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter
period, to the amortised cost of a financial liability.
Financial guarantee contracts

A financial guarantee contract is a contract that requires the issuer to make specified payments to reimburse the holder for
a loss it incurs because a specified debtor fails to make payments when due in accordance with the terms of a debt
instrument.
Financial guarantee contracts issued by a group entity are initially measured at their fair values and, if not designated as at
FVTPL and do not arise from a transfer of a financial asset, are subsequently measured at the higher of:
 the amount of the loss allowance determined in accordance with SFRS(I) 9; and
 the amount initially recognised less, where appropriate, cumulative amount of income recognised in accordance with the
revenue recognition policies.
Guidance notes – Accounting policies for other commitments

Commitments to provide a loan at a below-market interest rate

Commitments to provide a loan at a below-market interest rate are initially measured at their fair values and, if not
designated as at FVTPL, are subsequently measured at the higher of:
 the amount of the loss allowance determined in accordance with SFRS(I) 9; and
 the amount initially recognised less, where appropriate, cumulative amount of income recognised in accordance with
the revenue recognition policies.
Foreign exchange gains and losses

For financial liabilities that are denominated in a foreign currency and are measured at amortised cost as at each reporting
date, the foreign exchange gains and losses are determined based on the amortised cost of the instruments. These foreign
exchange gains and losses are recognised in the “other gains and losses” line item in profit or loss (Note 45) for financial
liabilities that are not part of a designated hedging relationship.
The fair value of financial liabilities denominated in a foreign currency is determined in that foreign currency and translated
at the spot rate at the end of the reporting period. For financial liabilities that are measured as at FVTPL, the foreign exchange
component forms part of the fair value gains or losses and is recognised in profit or loss for financial liabilities that are not
part of a designated hedging relationship.
See Note 2.4.4 regarding the recognition of exchange differences where the foreign currency risk component of a financial
liability is designated as a hedging instrument for a hedge of foreign currency risk.
Derecognition of financial liabilities

The group derecognises financial liabilities when, and only when, the group’s obligations are discharged, cancelled or they
expire. The difference between the carrying amount of the financial liability derecognised and the consideration paid and
payable, including any non-cash assets transferred or liabilities assumed, is recognised in profit or loss.

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December 31, 2018
2.4.3 Derivative financial instruments

The group enters into a variety of derivative financial instruments to manage its exposure to interest rate and foreign
exchange rate risks, including foreign exchange forward contracts and interest rate swaps. Further details of derivative
financial instruments are disclosed in Note 14.
Derivatives are initially recognised at fair value at the date the derivative contracts are entered into and are subsequently
remeasured to their fair value as at each reporting date. The resulting gain or loss is recognised in profit or loss immediately
unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in
profit or loss depends on the nature of the hedge relationship.
2.4.3.1 Embedded derivatives

Derivatives embedded in non-derivative host contracts that are not financial assets within the scope of SFRS(I) 9 (e.g.
financial liabilities) are treated as separate derivatives when they meet the definition of a derivative, their risks and
characteristics are not closely related to those of the host contracts and the host contracts are not measured at FVTPL.
Derivatives embedded in hybrid contracts that contain financial asset hosts within the scope of SFRS(I) 9 are not separated.
The entire hybrid contract is classified and subsequently measured as either amortised cost or FVTPL as appropriate. See
above for the group’s policy on classification of financial assets.
2.4.4 Hedge accounting

The group designates certain derivatives as hedging instruments in respect of foreign currency risk and interest rate risk in
fair value hedges, cash flow hedges, or hedges of net investments in foreign operations as appropriate. Hedges of foreign
exchange risk on firm commitments are accounted for as cash flow hedges.
At the inception of the hedge relationship, the group documents the relationship between the hedging instrument and the
hedged item, along with its risk management objectives and its strategy for undertaking various hedge transactions.
Furthermore, at the inception of the hedge and on an ongoing basis, the group documents whether the hedging instrument
is effective in offsetting changes in fair values or cash flows of the hedged item attributable to the hedged risk, which is
when the hedging relationships meet all of the following hedge effectiveness requirements:
 there is an economic relationship between the hedged item and the hedging instrument;
 the effect of credit risk does not dominate the value changes that result from that economic relationship; and
 the hedge ratio of the hedging relationship is the same as that resulting from the quantity of the hedged item that the
group actually hedges and the quantity of the hedging instrument that the entity actually uses to hedge that quantity
of hedged item.
If a hedging relationship ceases to meet the hedge effectiveness requirement relating to the hedge ratio but the risk
management objective for that designated hedging relationship remains the same, the group adjusts the hedge ratio of the
hedging relationship (i.e. rebalances the hedge) so that it meets the qualifying criteria again.
The group designates the full change in the fair value of a forward contract (i.e. including the forward elements) as the
hedging instrument for all of its hedging relationships involving forward contracts.
Note 14 sets out details of the fair values of the derivative instruments used for hedging purposes.
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December 31, 2018
2.4.4.1 Fair value hedges

The fair value change on qualifying hedging instruments is recognised in profit or loss except when the hedging instrument
hedges an equity instrument designated at FVTOCI in which case it is recognised in other comprehensive income.
The carrying amount of a hedged item not already measured at fair value is adjusted for the fair value change attributable
to the hedged risk with a corresponding entry in profit or loss. For debt instruments measured at FVTOCI, the carrying
amount is not adjusted as it is already at fair value, but the hedging gain or loss is recognised in profit or loss instead of
other comprehensive income. When the hedged item is an equity instrument designated at FVTOCI, the hedging gain or loss
remains in other comprehensive income to match that of the hedging instrument.
Where hedging gains or losses are recognised in profit or loss, they are recognised in the same line as the hedged item.
The group discontinues hedge accounting only when the hedging relationship (or a part thereof) ceases to meet the qualifying
criteria (after rebalancing, if applicable). This includes instances when the hedging instrument expires or is sold, terminated
or exercised. The discontinuation is accounted for prospectively. The fair value adjustment to the carrying amount of the
hedged item arising from the hedged risk is amortised to profit or loss from that date.
2.4.4.2 Cash flow hedges

The effective portion of changes in the fair value of derivatives and other qualifying hedging instruments that are designated
and qualify as cash flow hedges is recognised in other comprehensive income and accumulated under the heading of cash
flow hedging reserve, limited to the cumulative change in fair value of the hedged item from inception of the hedge. The
gain or loss relating to the ineffective portion is recognised immediately in profit or loss, and is included in the ‘other gains
and losses’ line item.
Amounts previously recognised in other comprehensive income and accumulated in equity are reclassified to profit or loss
in the periods when the hedged item affects profit or loss, in the same line as the recognised hedged item. However, when
the hedged forecast transaction results in the recognition of a non-financial asset or a non-financial liability, the gains and
losses previously recognised in other comprehensive income and accumulated in equity are removed from equity and
included in the initial measurement of the cost of the non-financial asset or non-financial liability. This transfer does not
affect other comprehensive income. Furthermore, if the group expects that some or all of the loss accumulated in other
comprehensive income will not be recovered in the future, that amount is immediately reclassified to profit or loss.
The group discontinues hedge accounting only when the hedging relationship (or a part thereof) ceases to meet the qualifying
criteria (after rebalancing, if applicable). This includes instances when the hedging instrument expires or is sold, terminated
or exercised. The discontinuation is accounted for prospectively. Any gain or loss recognised in other comprehensive income
and accumulated in equity at that time remains in equity and is recognised when the forecast transaction is ultimately
recognised in profit or loss. When a forecast transaction is no longer expected to occur, the gain or loss accumulated in
equity is recognised immediately in profit or loss.
2.4.4.3 Hedges of net investments in foreign operations

Hedges of net investments in foreign operations are accounted for similarly to cash flow hedges. Any gain or loss on the
hedging instrument relating to the effective portion of the hedge is recognised in other comprehensive income and
accumulated under the heading of foreign currency translation reserve. The gain or loss relating to the ineffective portion is
recognised immediately in profit or loss, and is included in the “other gains and losses” line item.
Gains and losses on the hedging instrument relating to the effective portion of the hedge accumulated in the foreign currency
translation reserve are reclassified to profit or loss on the disposal or partial disposal of the foreign operation.
SFRS(I) 1-32.42 2.4.5 Offsetting arrangements

Financial assets and financial liabilities are offset and the net amount presented in the statement of financial position when
the company and the group has a legally enforceable right to set off the recognised amounts; and intends either to settle
on a net basis, or to realise the asset and settle the liability simultaneously. A right to set-off must be available today rather
than being contingent on a future event and must be exercisable by any of the counterparties, both in the normal course of
business and in the event of default, insolvency or bankruptcy.

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December 31, 2018
SFRS(I) 1-17.4 2.5 Leases - Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks
and rewards of ownership to the lessee. All other leases are classified as operating leases.
SFRS(I) 1-17.36 2.5.1 The group as lessor

SFRS(I) 1-17.39 Amounts due from lessees under finance leases are recognised as receivables at the amount of the group’s net investment
in the leases. Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on
the group’s net investment outstanding in respect of the leases.
SFRS(I) 1-17.50 Rental income from operating leases is recognised on a straight-line basis over the term of the relevant lease unless another
SFRS(I) 1-17.52 systematic basis is more representative of the time pattern in which use benefit derived from the leased asset is diminished.
Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased
asset and recognised as an expense over the lease term on the same basis as the lease income.
SFRS(I) 1-17.20 2.5.2 The group as lessee

Assets held under finance leases are recognised as assets of the group at their fair value at the inception of the lease or,
if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the
statement of financial position as a finance lease obligation. Lease payments are apportioned between finance charges and
reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance
charges are charged directly to profit or loss, unless they are directly attributable to qualifying assets, in which case they
are capitalised in accordance with the group’s general policy on borrowing costs (see below). Contingent rentals are
recognised as expenses in the periods in which they are incurred.
SFRS(I) 1-17.33 Rentals payable under operating leases are charged to profit or loss on a straight-line basis over the term of the relevant
lease unless another systematic basis is more representative of the time pattern in which economic benefits from the leased
asset are consumed. Contingent rentals arising under operating leases are recognised as an expense in the period in which
they are incurred.
In the event that lease incentives are received to enter into operating leases, such incentives are recognised as a liability.
The aggregate benefit of incentives is recognised as a reduction of rental expense on a straight-line basis, except where
another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are
consumed.
2.6 Non-current assets held for sale and discontinued operations - Non-current assets and disposal groups are
classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through
continuing use. This condition is regarded as met only when the sale is highly probable and the asset (or disposal group) is
available for immediate sale in its present condition. Management must be committed to the sale, which should be expected
to qualify for recognition as a completed sale within one year from the date of classification.
SFRS(I) 5.8A When the group is committed to a sale plan involving loss of control of a subsidiary, all of the assets and liabilities of that
subsidiary are classified as held for sale when the criteria described above are met, regardless of whether the group will
retain a non-controlling interest in its former subsidiary after the sale.
SFRS(I) 5.15 Non-current assets (and disposal groups) classified as held for sale are measured at the lower of their previous carrying
amount and fair value less costs to sell.
SFRS(I) 5.32 A discontinued operation is a component of an entity that either has been disposed of, or is classified as held for sale, and:
(a) represents a separate major line of business or geographical area of operations,
(b) is part of a single co-ordinated plan to dispose of a separate major line of business or geographical area of operations
or
(c) is a subsidiary acquired exclusively with a view to resale.
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SFRS(I) 1-2.36(a) 2.7 Inventories - Inventories are stated at the lower of cost and net realisable value. Cost comprises direct materials
and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their
present location and condition. Cost is calculated using the weighted average method. Net realisable value represents the
estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
SFRS(I) 1-16.73(a) 2.8 Property, plant and equipment - Land and buildings held for use in the production or supply of goods or services,
SFRS(I) 1-16.31 or for administrative purposes, are stated in the statement of financial position at their revalued amounts, being the fair
value at the date of revaluation, less any subsequent accumulated depreciation and subsequent accumulated impairment
losses. Revaluations are performed with sufficient regularity such that the carrying amount does not differ materially from
that which would be determined using fair values at the end of the reporting period.
SFRS(I) 1-16.39 Any revaluation increase arising on the revaluation of such land and buildings is recognised in other comprehensive income
SFRS(I) 1-16.40 and accumulated in revaluation reserve, except to the extent that it reverses a revaluation decrease for the same asset
previously recognised in profit or loss, in which case the increase is credited to profit or loss to the extent of the decrease
previously charged. A decrease in carrying amount arising on the revaluation of such land and buildings is charged to profit
or loss to the extent that it exceeds the balance, if any, held in the property revaluation reserve relating to a previous
revaluation of that asset.
Properties in the course of construction for production, supply or administrative purposes, or for purposes not yet
determined, are carried at cost, less any recognised impairment loss. Cost includes professional fees and, for qualifying
assets, borrowing costs capitalised in accordance with the group’s accounting policy. Depreciation of these assets, on the
same basis as other property assets, commences when the assets are ready for their intended use.
SFRS(I) 1-16.30 Plant and equipment are stated at cost less accumulated depreciation and any accumulated impairment losses.
SFRS(I) 1-16.73(b) Depreciation is charged so as to write off the cost or valuation of assets, other than land and properties under construction,
over their estimated useful lives, using the straight-line method, on the following bases:
SFRS(I) 1-16.73(c) Leasehold land and buildings – over the terms of lease which are from 2% to 5%
Plant and equipment – 10% to 33%
The estimated useful lives, residual values and depreciation method are reviewed at each year end, with the effect of any
changes in estimate accounted for on a prospective basis.
SFRS(I) 1-17.27 Assets held under finance leases are depreciated over their expected useful lives on the same basis as owned assets or, if
there is no certainty that the lessee will obtain ownership by the end of the lease term, the asset shall be fully depre ciated
over the shorter of the lease term and its useful life.
SFRS(I) 1-16.68 The gain or loss arising on disposal or retirement of an item of property, plant and equipment is determined as the difference
between the sales proceeds and the carrying amounts of the asset and is recognised in profit or loss. On the subsequent
sale or retirement of a revalued property, the attributable revaluation surplus remaining in the properties revaluation reserve
is transferred directly to retained earnings. No transfer is made from the revaluation reserve to retained earnings except
when an asset is derecognised.

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December 31, 2018
SFRS(I) 1-40.75(a) 2.9 Investment property - Investment property, which is property held to earn rentals and/or for capital appreciation,
including property under construction for such purposes, is measured initially at its cost, including transaction costs.
Subsequent to initial recognition, investment property is measured at fair value. Gains or losses arising from changes in the
fair value of investment property are included in profit or loss for the period in which they arise.
An investment property is derecognised upon disposal or when the investment property is permanently withdrawn from use
and no future economic benefits are expected from the disposal. Any gain or loss arising on derecognition of the property
(calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in profit
or loss in the period in which the property is derecognised.
SFRS(I) 3.32 2.10 Goodwill - Goodwill arising in a business combination is recognised as an asset at the date that control is acquired
(the acquisition date). Goodwill is measured as the excess of the sum of the consideration transferred, the amount of an y
non-controlling interest in the acquiree and the fair value of the acquirer’s previously held equity interest (if any) in the
entity over net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed.
SFRS(I) 3.36 If, after reassessment, the group’s interest in the fair value of the acquiree’s identifiable net assets exceeds the sum of the
consideration transferred, the amount of any non-controlling interest in the acquiree and the fair value of the acquirer’s
previously held equity interest in the acquiree (if any), the excess is recognised immediately in profit or loss as a bargain
purchase gain.
SFRS(I) 1-36.80 Goodwill is not amortised but is reviewed for impairment at least annually. For the purpose of impairment testing, goodwill
SFRS(I) 1-36.90 is allocated to each of the group’s cash-generating units expected to benefit from the synergies of the combination.
SFRS(I) 1-36.104 Cash-generating units to which goodwill has been allocated are tested for impairment annually, or more frequently when
there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than its
carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit
and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit. An impairment
SFRS(I) 1-36.124 loss recognised for goodwill is not reversed in a subsequent period.
On disposal of a subsidiary or the relevant cash generating unit, the attributable amount of goodwill is included in the
determination of the profit or loss on disposal.
SFRS(I) 1-38.118(b) 2.11 Intangible assets
2.11.1 Intangible assets acquired separately

Intangible assets acquired separately are reported at cost less accumulated amortisation (where they have finite useful lives)
and accumulated impairment losses. Intangible assets with finite useful lives are amortised on a straight-line basis over their
estimated useful lives. The estimated useful life and amortisation method are reviewed as at each reporting date, with the
effect of any changes in estimate being accounted for on a prospective basis. Intangible assets with indefinite useful lives
are not amortised. Each period, the useful lives of such assets are reviewed to determine whether events and circumstances
continue to support an indefinite useful life assessment for the asset. Such assets are tested for impairment in accordance
with the policy below.
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2.11.2 Internally-generated intangible assets - research and development expenditure

Expenditure on research activities is recognised as an expense in the period in which it is incurred.
An internally-generated intangible asset arising from development (or from the development phase of an internal project)
is recognised if, and only if, all of the following have been demonstrated:
 The technical feasibility of completing the intangible asset so that it will be available for use or sale;
 The intention to complete the intangible asset and use or sell it;
 The ability to use or sell the intangible asset;
 How the intangible asset will generate probable future economic benefits;
 The availability of adequate technical, financial and other resources to complete the development and to use or sell the
intangible asset; and
 The ability to measure reliably the expenditure attributable to the intangible asset during its development.
The amount initially recognised for internally-generated intangible assets is the sum of the expenditure incurred from the
date when the intangible asset first meets the recognition criteria listed above. Where no internally-generated intangible
asset can be recognised, development expenditure is charged to profit or loss in the period in which it is incurred.
SFRS(I) 1- Subsequent to initial recognition, internally-generated intangible assets are reported at cost less accumulated amortisation
38.118(b),(c) and accumulated impairment losses, on the same basis as intangible assets acquired separately.
2.11.3 Intangible assets acquired in a business combination

Intangible assets acquired in a business combination are identified and recognised separately from goodwill. The cost of
such intangible assets is their fair value at the acquisition date.
SFRS(I) 1- Subsequent to initial recognition, intangible assets acquired in a business combination are reported at cost less accumulated
38.118(b),(c) amortisation and accumulated impairment losses, on the same basis as intangible assets acquired separately.
SFRS(I) 1-36.9 2.12 Impairment of tangible and intangible assets excluding goodwill – As at each reporting date, the group
reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those
assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in
order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount
of an individual asset, the group estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Where a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual
cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable
and consistent allocation basis can be identified.
SFRS(I) 1-36.6 Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated
SFRS(I) 1-36.30 future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments
of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been
adjusted.
SFRS(I) 1-36.59 If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying
SFRS(I) 1-36.60 amount of the asset (cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised
immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is
treated as a revaluation decrease.
SFRS(I) 1-36.119 Where an impairment loss subsequently reverses, the carrying amount of the asset (cash-generating unit) is increased to
the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying
amount that would have been determined had no impairment loss been recognised for the asset (cash-generating unit) in
prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried
at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment annually,
and whenever there is an indication that the asset may be impaired.

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December 31, 2018
SFRS(I) 1-28.3 2.13 Associates and joint venture - An associate is an entity over which the group has significant influence. Significant
SFRS(I) 1-28.6 influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint
control over those policies.
SFRS(I) 1-28.3 A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net
assets of the joint arrangement. Joint control is the contractually agreed sharing of control of an arrangement, which exists
only when decisions about the relevant activities require unanimous consent of the parties sharing control.
SFRS(I) 1-28.10 The results and assets and liabilities of associates or joint ventures are incorporated in these consolidated financial
SFRS(I) 1-28.15 statements using the equity method of accounting, except when the investment, or a portion thereof, is classified as held
SFRS(I) 1-28.38 for sale, in which case it is accounted for in accordance with SFRS(I) 5. Under the equity method, an investment in an
SFRS(I) 1-28.39 associate or a joint venture is initially recognised in the consolidated statement of financial position at cost and adjusted
thereafter to recognise the group’s share of the profit or loss and other comprehensive income of the associate or joint
venture. When the group’s share of losses of an associate or a joint venture exceeds the group’s interest in that associate
or joint venture (which includes any long-term interests that, in substance, form part of the group’s net investment in the
associate or joint venture), the group discontinues recognising its share of further losses. Additional losses are recognised
only to the extent that the group has incurred legal or constructive obligations or made payments on behalf of the associate
or joint venture.
SFRS(I) 1-28.32 An investment in an associate or a joint venture is accounted for using the equity method from the date on which the
investee becomes an associate or a joint venture. On acquisition of the investment in an associate or a joint venture, any
excess of the cost of the investment over the group’s share of the net fair value of the identifiable assets and liabilities of
the investee is recognised as goodwill, which is included within the carrying amount of the investment. Any excess of the
group’s share of the net fair value of the identifiable assets and liabilities over the cost of the investment, after reassessment,
is recognised immediately in profit or loss in the period in which the investment is acquired.
SFRS(I) 1-28.40 The requirements of SFRS(I) 9 are applied to determine whether it is necessary to recognise any impairment loss with
SFRS(I) 1-28.42 respect to the group’s investment in an associate or a joint venture. When necessary, the entire carrying amount of the
investment (including goodwill) is tested for impairment in accordance with SFRS(I) 1-36 Impairment of Assets as a single
asset by comparing its recoverable amount (higher of value in use and fair value less costs to sell) with its carrying amount,
any impairment loss recognised forms part of the carrying amount of the investment. Any reversal of that impairment loss
is recognised in accordance with SFRS(I) 1-36 to the extent that the recoverable amount of the investment subsequently
increases.
SFRS(I) 1-28.20 The group discontinues the use of the equity method from the date when the investment ceases to be an associate or a joint
SFRS(I) 1-28.23 venture, or when the investment is classified as held for sale. When the group retains an interest in the former associate or
joint venture and the retained interest is a financial asset, the group measures the retained interest at fair value at that date
and the fair value is regarded as its fair value on initial recognition in accordance with SFRS(I) 9. The difference between
the carrying amount of the associate or joint venture at the date the equity method was discontinued, and the fair value of
any retained interest and any proceeds from disposing of a part interest in the associate or joint venture is included in the
determination of the gain or loss on disposal of the associate or joint venture. In addition, the group accounts for all amounts
previously recognised in other comprehensive income in relation to that associate or joint venture on the same basis as
would be required if that associate or joint venture had directly disposed of the related assets or liabilities. Therefore, if a
gain or loss previously recognised in other comprehensive income by that associate or joint venture would be reclassified to
profit or loss on the disposal of the related assets or liabilities, the group reclassifies the gain or loss from equity to profit or
loss (as a reclassification adjustment) when the equity method is discontinued.
SFRS(I) 1-28.24 The group continues to use the equity method when an investment in an associate becomes an investment in a joint venture
or an investment in a joint venture becomes an investment in an associate. There is no remeasurement to fair value upon
such changes in ownership interests.
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SFRS(I) 1-28.25 When the group reduces its ownership interest in an associate or a joint venture but the group continues to use the equity
method, the group reclassifies to profit or loss the proportion of the gain or loss that had previously been recognised in other
comprehensive income relating to that reduction in ownership interest if that gain or loss would be reclassifie d to profit or
loss on the disposal of the related assets or liabilities.
SFRS(I) 1-28.28 When a group entity transacts with an associate or a joint venture of the group, profits and losses resulting from the
transactions with the associate or joint venture are recognised in the group’s consolidated financial statements only to the
extent of interests in the associate or joint venture that are not related to the group.
SFRS(I) 11.7 2.14 Interests in joint operations - A joint operation is a joint arrangement whereby the parties that have joint control
SFRS(I) 11.20 of the arrangement have rights to the assets, and obligations for the liabilities, relating to the arrangement. Joint control is
the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities
require unanimous consent of the parties sharing control.
When a group entity undertakes its activities under joint operations, the group as a joint operator recognises in relation to
its interest in a joint operation:
 Its assets, including its share of any assets held jointly;
 Its liabilities, including its share of any liabilities incurred jointly;
 Its revenue from the sale of its share of the output arising from the joint operation;
 Its share of the revenue from the sale of the output by the joint operation; and
 Its expenses, including its share of any expenses incurred jointly.
SFRS(I) 11.21 The group accounts for the assets, liabilities, revenues and expenses relating to its interest in a joint operation in accordance
with the SFRS(I)s applicable to the particular assets, liabilities, revenues and expenses.
SFRS(I) 11.B34 When a group entity transacts with a joint operation in which a group entity is a joint operator (such as a sale or contribution
of assets), the group is considered to be conducting the transaction with the other parties to the joint operation, and gains
and losses resulting from the transactions are recognised in the group’s consolidated financial statements only to the extent
of other parties’ interests in the joint operation.
SFRS(I) 11.B36 When a group entity transacts with a joint operation in which a group entity is a joint operator (such as a purchase of
assets), the group does not recognise its share of the gains and losses until it resells those assets to a third party.
SFRS(I) 1-37.14 2.15 Provisions - Provisions are recognised when the group has a present obligation (legal or constructive) as a result of
a past event, it is probable that the group will be required to settle the obligation, and a reliable estimate can be made of
the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at
the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. Where a provision
is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those
cash flows.
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party,
the receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the
receivable can be measured reliably.

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December 31, 2018
Guidance notes – Accounting policies for specific types of provisions

Onerous contracts
Present obligations arising under onerous contracts are recognised and measured as a provision. An onerous contract is
considered to exist where the group has a contract under which the unavoidable costs of meeting the obligations under
the contract exceed the economic benefits expected to be received from it.
Restructurings
A restructuring provision is recognised when the group has developed a detailed formal plan for the restructuring and has
raised a valid expectation in those affected that it will carry out the restructuring by starting to implement the plan or
announcing its main features to those affected by it. The measurement of a restructuring provision includes only the direct
expenditures arising from the restructuring, which are those amounts that are both necessarily entailed by the
restructuring and not associated with the ongoing activities of the entity.
Assurance-type warranty
Provisions for warranty costs are recognised at the date of sale of the relevant products, at management’s best estimate
of the expenditure required to settle the group’s obligation.
SFRS(I) 2.10 2.16 Share-based payments - The group issues equity-settled and cash-settled share-based payments to certain
employees.
Equity-settled share-based payments are measured at fair value of the equity instruments at the date of grant. Details
regarding the determination of the fair value of equity-settled share-based transactions are set out in Note 35. The fair value
determined at the grant date of the equity-settled share-based payments is expensed on a straight-line basis over the
vesting period, based on the group’s estimate of the number of equity instruments that will eventually vest. As at each
reporting date, the group revises its estimate of the number of equity instruments expected to vest. The impact of the
revision of the original estimates, if any, is recognised in profit or loss such that the cumulative expense reflects the revised
estimate, with a corresponding adjustment to the equity-settled employee benefits reserve.
Equity-settled share-based payment transactions with parties other than employees are measured at the fair value of the
goods or services received, except where that fair value cannot be estimated reliably, in which case they are measured at
the fair value of the equity instruments granted, measured at the date the entity obtains the goods or the counterparty
renders the service.
For cash-settled share-based payments, a liability is recognised for the goods or services acquired, measured initially at the
fair of the liability. As at each reporting date until the liability is settled, and at the date of settlement, the fair value of the
liability is remeasured, with any changes in fair value recognised in profit or loss for the year.
SFRS(I) 1-20.39(a) 2.17 Government grants - Government grants are not recognised until there is reasonable assurance that the group will
comply with the conditions attaching to them and the grants will be received. The benefit of a government loan at a below-
market rate of interest is treated as a government grant, measured as the difference between proceeds received and the
fair value of the loan based on prevailing market interest rates. Government grants whose primary condition is that the
group should purchase, construct or otherwise acquire non-current assets are recognised as deferred income in the
statement of financial position and transferred to profit or loss on a systematic and rational basis over the useful lives of the
related assets.
Other government grants are recognised as income over the periods necessary to match them with the costs for which they
are intended to compensate, on a systematic basis. Government grants that are receivable as compensation for expenses
or losses already incurred or for the purpose of giving immediate financial support to the group with no future related costs
are recognised in profit or loss in the period in which they become receivable.
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2.18 Revenue recognition – The group recognises revenue from the following major sources:
 Sale of leisure goods and electronic equipment, including the related loyalty programme “Maxi – Points Scheme” as
disclosed in Note 29, maintenance included in the price of products sold, as well as warranties granted under local
legislation as disclosed in Note 32;
 Installation of computer software for specialised business applications; and
 Construction of residential properties.
SRFS(I) 15.31 Revenue is measured based on the consideration specified in a contract with a customer and excludes amounts collected on
SFRS(I) 15.46 behalf of third parties. The group recognises revenue when it transfers control of a product or service to a customer.
SFRS(I) 15.47
SFRS(I) 15.119
2.18.1 Sale of goods – leisure goods
SFRS(I) 15.B30 The group sells sport shoes, sport equipment and outdoor play equipment both to the wholesale market and directly to
SFRS(I) 15.119(e) customers through its own retail outlets. Sales-related warranties associated with leisure goods cannot be purchased
separately and they serve as an assurance that the products sold comply with agreed-upon specifications. Accordingly, the
group accounts for warranties in accordance with SFRS(I) 1-37 Provisions, Contingent Liabilities and Contingent Assets
consistent with its previous accounting treatment (see Note 32).
SFRS(I) 15.125 For sale of leisure goods to the wholesale market, revenue is recognised when control of the goods has transferred, being
when the goods have been shipped to the wholesaler’s specific location (delivery). Following delivery, the wholesaler has full
discretion over the manner of distribution and price to sell the goods, has the primary responsibility when onselling the
SFRS(I) 15.108 goods and bears the risks of obsolescence and loss in relation to the goods. A receivable is recognised by the group when
the goods are delivered to the wholesaler as this represents the point in time at which the right to consideration becomes
unconditional, as only the passage of time is required before payment is due.
SFRS(I) 15.125 For sale of goods to retail customers, revenue is recognised when control of the goods has transferred, being at the point
the customer purchases the goods at the retail outlet. Payment of the transaction price is due immediately at the point the
customer purchases the goods.
SFRS(I) 15.55 Under the group’s standard contract terms, customers have a right of return within 30 days. At the point of sale, a refund
SFRS(I) 15.B21 liability and a corresponding adjustment to revenue are recognised for those products expected to be returned. At the same
SFRS(I) 15.119(d) time, the group has a right to recover the product when customers exercise their right of return so consequently recognises
SFRS(I) a right to returned goods asset and a corresponding adjustment to the cost of inventories recognised in profit or loss. The
15.126(b),(d)(d) group uses its accumulated historical experience to estimate the number of returns on a portfolio level using the expected
value method. It is considered highly probable that a significant reversal in the cumulative revenue recognised will not occur
given the consistent level of returns over previous years.
2.18.2 Sale of goods – electronic equipment

The group sells electronic equipment to the wholesale market and directly to customers both through its own retail outlets
and through internet sales.
SFRS(I) 15.125 For sale of electronic equipment to the wholesale market and through retail outlets and internet sales, revenue is recognised
SFRS(I) 15.55 by the group at a point in time in line with the policy outlined above for the sale of leisure goods. For sale to retail customers
SFRS(I) 15.B21 (from both retail outlet and internet sales) there exists the same 30-day right of return and accordingly a refund liability
SFRS(I) 15.119(d) and a right to the returned goods are recognised in relation to electronic equipment expected to be returned.
SFRS(I) 15.125 For internet sales, revenue is recognised when control of the goods has transferred to the customer, being at the point the
SFRS(I) 15.106 goods are delivered to the customer. Delivery occurs when the goods have been shipped to the customer’s specific location.
SFRS(I) 15.117 When the customer initially purchases the goods online, the transaction price received by the group is recognised as a
contract liability until the goods have been delivered to the customer.

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December 31, 2018
2.18.3 Sale of goods – “Maxi-Points” customer loyalty programme

SFRS(I) 15.B39 The group operates a “Maxi-Points” loyalty programme through which retail customers accumulate points on purchases of
SFRS(I) 15.B40 leisure goods and electronic equipment that entitle them to discounts on future purchases. These points provide a discount
to customers that they would not receive without purchasing the leisure goods or electronic equipment. The promise to
provide the discount to the customer is therefore a separate performance obligation.
SFRS(I) 15.74 The transaction price is allocated between the product, the maintenance services (if the product is electronic equipment, as
SFRS(I) 15.B42 described below) and the points on a relative stand-alone selling price basis. The stand-alone selling price per point is
SFRS(I) 15.106 estimated based on the discount to be given when the points are redeemed by the customer and the likelihood of redemption,
SFRS(I) 15.117 as evidenced by the group’s historical experience. A contract liability is recognised for revenue relating to the loyalty points
at the time of the initial sales transaction. Revenue from the loyalty points is recognised when the points are redeemed by
the customer. Revenue for points that are not expected to be redeemed is recognised in proportion to the pattern of rights
exercised by customers.
2.18.4 Sale of services – maintenance relating to electronic equipment

Included in the transaction price for the sale of electronic equipment is an after–sales service. This service relates to
maintenance work that may be required to be carried out on the equipment for a three–year period after sale. This period
can then be extended if the customer requires additional years of maintenance services. The renewal of services after the
three–year period will be for the price at which these are sold by the entity to all of its customers as at the date of renewal
regardless of the existence of a renewal option. Consequently, the option to extend the renewal period does not provide
customers with any advantage when they enter into the initial contract and therefore no revenue has been deferred relating
to this renewal option.
SFRS(I) 15.B29 The maintenance service is considered to be a distinct service as it is both regularly supplied by the group to other customers
SFRS(I) 15.74 on a stand-alone basis and is available for customers from other providers in the market. A portion of the transaction price
SFRS(I) 15.81 is therefore allocated to the maintenance services based on the stand-alone selling price of those services. Discounts are
SFRS(I) 15.126(c) not considered as they are only given in rare circumstances and are never material.
SFRS(I) 15.35(b) Revenue relating to the maintenance services is recognised over time. The transaction price allocated to these services is
SFRS(I) 15.106 recognised as a contract liability at the time of the initial sales transaction and is released on a straight line basis over the
SFRS(I) 15.117 period of service (i.e. three years when the services are purchased together with the underlying equipment).
SFRS(I) 15.123(a)
SFRS(I) 15.124
2.18.5 Sale of services – installation of software services
SFRS(I) 15.35(b) The group provides a service of installation of various software products for specialised business operations. Such services
are recognised as a performance obligation satisfied over time. Revenue is recognised for these installation services based
SFRS(I) 15.124 on the stage of completion of the contract. Management has assessed that the stage of completion determined as the
SFRS(I) 15.107 proportion of the total time expected to install that has elapsed at the end of the reporting period is an appropriate measure
SFRS(I) 15.117 of progress towards complete satisfaction of these performance obligations under SFRS(I) 15. Payment for installation of
software services is not due from the customer until the installation services are complete and therefore a contract asset is
recognised over the period in which the installation services are performed representing the entity’s right to consideration
for the services performed to date. This balance was previously recognised as part of trade receivables.
2.18.6 Construction of residential properties

SFRS(I) 15.35(c) The group constructs and sells residential properties under long-term contracts with customers. Such contracts are entered
into before construction of the residential properties begins. Under the terms of the contracts, the group is contractually
restricted from redirecting the properties to another customer and has an enforceable right to payment for work done.
SFRS(I) 15.124 Revenue from construction of residential properties is therefore recognised over time on a cost–to–cost method, i.e. based
on the proportion of contract costs incurred for work performed to date relative to the estimated total contract costs.
Management considers that this input method is an appropriate measure of the progress towards complete satisfaction of
these performance obligations under SFRS(I) 15.
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SFRS(I) 15.117 The group becomes entitled to invoice customers for construction of residential properties based on achieving a series of
SFRS(I) 15.106 performance-related milestones. When a particular milestone is reached, the customer is sent a relevant statement of
SFRS(I) 15.107 work signed by a third party assessor and an invoice for the related milestone payment. The group will previously have
recognised a contract asset for any work performed. Any amount previously recognised as a contract asset is reclassified
to trade receivables at the point at which it is invoiced to the customer. If the milestone payment exceeds the revenue
recognised to date under the cost–to–cost method then the group recognises a contract liability for the difference. There
is not considered to be a significant financing component in construction contracts with customers as the period between
the recognition of revenue under the cost–to–cost method and the milestone payment is always less than one year.
Guidance notes – Practical expedient on significant financing component
SFRS(I) 15.63 As a practical expedient, an entity need not adjust the promised amount of consideration for the effects of a significant
financing component if the entity expects, at contract inception, that the period between when the entity transfers a
promised good or service to a customer and when the customer pays for that good or service will be one year or less.
SFRS(I) 15.129 When the above practical expedient is applied, the entity shall disclose that fact.
SFRS(I) 1-23.12 2.19 Borrowing costs - Borrowing costs directly attributable to the acquisition, construction or production of qualifying
SFRS(I) 1-23.22 assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are
added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.
Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying
assets is deducted from the borrowing costs eligible for capitalisation.
SFRS(I) 1-23.8 All other borrowing costs are recognised in profit or loss in the period in which they are incurred.
SFRS(I) 1-19.44 2.20 Retirement benefit costs - Payments to defined contribution retirement benefit plans are charged as an expense
when employees have rendered the services entitling them to the contributions. Payments made to state-managed
retirement benefit schemes, such as the Singapore Central Provident Fund, are dealt with as payments to defined
contribution plans where the group’s obligations under the plans are equivalent to those arising in a defined contribution
retirement benefit plan.
SFRS(I) 1-19.120 For defined benefit retirement benefit plans, the cost of providing benefits is determined using the Projected Unit Credit
Method, with actuarial valuations being carried out as at each reporting date. Remeasurement, comprising actuarial gains
and losses, the effect of the changes to the asset ceiling (if applicable) and the return on plan assets (excluding interest), is
reflected immediately in the statement of financial position with a charge or credit recognised in other comprehensive income
in the period in which they occur. Remeasurement recognised in other comprehensive income is reflected immediately in
retained earnings and will not be reclassified to profit or loss. Past service cost is recognised in profit or loss in the period of
a plan amendment. Net interest is calculated by applying the discount rate at the beginning of the period to the net defined
benefit liability or asset. Defined benefit costs are categorised as follows:
 Service cost (including current service cost, past service cost, as well as gains and losses on curtailments and
settlements);
 Net interest expense or income; and
 Remeasurement.
The group presents the first two components of defined benefit costs in profit or loss in the line item [“employee benefits
expense”/others (please specify)]. Curtailment gains and losses are accounted for as past service costs.
The retirement benefit obligation recognised in the statement of financial position represents the actual deficit or surplus in
the group’s defined benefit plans. Any surplus resulting from this calculation is limited to the present value of any economic
benefits available in the form of refunds from the plans or reductions in future contributions to the plan.
A liability for a termination benefit is recognised at the earlier of when the entity can no longer withdraw the offer of the
termination benefit and when the entity recognises any related restructuring costs.

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December 31, 2018
2.21 Employee leave entitlement - Employee entitlements to annual leave are recognised when they accrue to
employees. A provision is made for the estimated liability for annual leave as a result of services rendered by employees up
to the end of the reporting period.
2.22 Income tax - Income tax expense represents the sum of the tax currently payable and deferred tax.
SFRS(I) 1-12.5 The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the
consolidated statement of profit or loss and other comprehensive income because it excludes items of income or expense
that are taxable or deductible in other years and it further excludes items that are not taxable or tax deductible. The group’s
liability for current tax is calculated using tax rates (and tax laws) that have been enacted or substantively enacted in
countries where the company and subsidiaries operate by the end of the reporting period.
SFRS(I) 1-12.15 Deferred tax is recognised on the differences between the carrying amounts of assets and liabilities in the financial
SFRS(I) 1-12.24 statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally
recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that
taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities
are not recognised if the temporary difference arises from goodwill or from the initial recognition (other than in a business
combination) of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.
SFRS(I) 1-12.39 Deferred tax liabilities are recognised on taxable temporary differences arising on investments in subsidiaries and associates,
and interests in joint ventures, except where the group is able to control the reversal of the temporary difference and it is
SFRS(I) 1-12.44 probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible
temporary differences associated with such investments and interests are only recognised to the extent that it is probable
that there will be sufficient taxable profits against which to utilise the benefits of the temporary differences and they are
expected to reverse in the foreseeable future.
SFRS(I) 1-12.56 The carrying amount of deferred tax assets is reviewed as at each reporting date and reduced to the extent that it is no
longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
SFRS(I) 1-12.58(a) Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset
SFRS(I) 1-12.47 realised based on the tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting
period. Except for investment properties measured using the fair value model, the measurement of deferred tax liabilities
and assets reflects the tax consequences that would follow from the manner in which the group expects, at the end of the
reporting period, to recover or settle the carrying amount of its assets and liabilities.
SFRS(I) 1-12.51C For the purposes of measuring deferred tax liabilities and deferred tax assets for investment properties that are measured
using the fair value model the carrying amounts of such properties are presumed to be recovered through sale, unless the
presumption is rebutted. The presumption is rebutted when the investment property is depreciable and is held within a
business model of the group whose business objective is to consume substantially all of the economic benefits embodied in
the investment property over time, rather than through sale. The group has not rebutted the presumption that the carrying
amount of the investment properties will be recovered entirely through sale.
SFRS(I) 1- Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against
12.71(a),(b) current tax liabilities and when they relate to income taxes levied by the same taxation authority and the group intends to
settle its current tax assets and liabilities on a net basis.
Current and deferred tax are recognised as an expense or income in profit or loss, except when they relate to items credited
or debited outside profit or loss (either in other comprehensive income or directly in equity), in which case the tax is also
recognised outside profit or loss (either in other comprehensive income or directly in equity, respectively), or where they
arise from the initial accounting for a business combination. In the case of a business combination, the tax effect is taken
into account in calculating goodwill or determining the excess of the acquirer’s interest in the net fair value of the acquiree’s
identifiable assets, liabilities and contingent liabilities over cost.
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SFRS(I) 1-21.51 2.23 Foreign currency transactions and translation - The individual financial statements of each group entity are
SFRS(I) 1-21.17 measured and presented in the currency of the primary economic environment in which the entity operates (its functional
SFRS(I) 1-21.18 currency). The consolidated financial statements of the group and the statement of financial position and equity of the
SFRS(I) 1-21.19 company are presented in Singapore dollars, which is the functional currency of the company and the presentation currency
for the consolidated financial statements.
SFRS(I) 1-21.23(a)- In preparing the financial statements of the individual entities, transactions in currencies other than the entity’s functional
(c) currency are recorded at the rate of exchange prevailing on the date of the transaction. As at each reporting date, monetary
SFRS(I) 1-21.21 items denominated in foreign currencies are retranslated at the rates prevailing at the end of the reporting period. Non -
monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on
the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign
currency are not retranslated.
SFRS(I) 1-21.32 Exchange differences arising on the settlement of monetary items, and on retranslation of monetary items are included in
SFRS(I) 1-21.28 profit or loss for the period. Exchange differences arising on the retranslation of non-monetary items carried at fair value
SFRS(I) 1-21.30 are included in profit or loss for the period except for differences arising on the retranslation of non-monetary items in
respect of which gains and losses are recognised in other comprehensive income. For such non-monetary items, any
exchange component of that gain or loss is also recognised in other comprehensive income.
SFRS(I) 1-23.6(e) Exchange differences on foreign currency borrowings relating to assets under construction for future productive use, are
included in the cost of those assets when they are regarded as an adjustment to interest costs on those foreign currency
borrowings.
Exchange differences on transactions entered into in order to hedge certain foreign currency risks are described in the hedge
accounting policies above.
SFRS(I) 1-21.39 For the purpose of presenting consolidated financial statements, the assets and liabilities of the group’s foreign operations
SFRS(I) 1-21.40 (including comparatives) are expressed in Singapore dollars using exchange rates prevailing at the end of the reporting
period. Income and expense items (including comparatives) are translated at the average exchange rates for the period,
unless exchange rates fluctuated significantly during that period, in which case the exchange rates at the dates of the
transactions are used. Exchange differences arising, if any, are recognised in other comprehensive income and accumulated
in a separate component of equity under the header of foreign currency translation reserve.
SFRS(I) 1-21.48 On the disposal of a foreign operation (i.e. a disposal of the group’s entire interest in a foreign operation, or a disposal
SFRS(I) 1-21.48A involving loss of control over a subsidiary that includes a foreign operation, loss of joint control over a jointly controlled
SFRS(I) 1-21.48B entity that includes a foreign operation, or loss of significant influence over an associate that includes a foreign operation),
all of the accumulated exchange differences in respect of that operation attributable to the group are reclassified to profit or
loss. Any exchange differences that have previously been attributed to non-controlling interests are derecognised, but they
are not reclassified to profit or loss.
SFRS(I) 1-21.48C In the case of a partial disposal (i.e. no loss of control) of a subsidiary that includes a foreign operation, the proportionate
SFRS(I) 1-21.48D share of accumulated exchange differences are re-attributed to non-controlling interests and are not recognised in profit or
loss. For all other partial disposals (i.e. of associates or jointly controlled entities that do not result in the group losing
significant influence or joint control), the proportionate share of the accumulated exchange differences is reclassified to
profit or loss.
SFRS(I) 1-21.32 On consolidation, exchange differences arising from the translation of the net investment in foreign entities (including
monetary items that, in substance, form part of the net investment in foreign entities), and of borrowings and other currency
instruments designated as hedges of such investments, are recognised in other comprehensive income and accumulated in
a separate component of equity under the header of foreign currency translation reserve.
SFRS(I) 1-21.47 Goodwill and fair value adjustments arising on the acquisition of a foreign operation are treated as assets and liabilities o f
the foreign operation and translated at the closing rate.

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December 31, 2018
SFRS(I) 1-7.46 2.24 Cash and cash equivalents in the statement of cash flows - Cash and cash equivalents in the statement of cash
flows comprise cash on hand and demand deposits, bank overdrafts, and other short-term highly liquid investments that are
readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value.
3. Critical accounting judgements and key sources of estimation uncertainty
Guidance notes
The following are examples of the types of disclosures that might be required in this area. The matters disclosed will be
dictated by the circumstances of the individual entity, and by the significance of judgements and estimates made to the
results and financial position of the entity.
Instead of disclosing this information in a separate note, it may be more appropriate to include such disclosures in the
relevant asset and liability notes, or as part of the relevant accounting policy disclosures.
SFRS(I) 1.14 An entity’s estimates in accordance with SFRS(I)s at the date of transition to SFRS(I)s shall be consistent with estimates
made for the same date in accordance with the previous FRS framework (after adjustments to reflect any difference in
accounting policies), unless there is objective evidence that those estimates were in error.
In the application of the group’s accounting policies, which are described in Note 2, management is required to make
judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent
from other sources. The estimates and associated assumptions are based on historical experience and other factors that are
considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the
revision and future periods if the revision affects both current and future periods.
SFRS(I) 1-1.122 Critical judgements in applying the entity’s accounting policies
The following are the critical judgements, apart from those involving estimations (see below), that management has made
in the process of applying the group’s accounting policies and that have the most significant effect on the amounts recognised
in the financial statements.
Guidance notes
As the application of SFRS(I) 15 requires significant judgements and certain key estimations, the matters disclosed here
will be dictated by the circumstances of the individual entity, and by the significance of judgements and estimates made
to the performance and financial position of the entity. Instead of disclosing this information in a separate note, it may be
more appropriate to include such disclosures in the relevant asset and liability notes, or as part of the relevant accounting
policy disclosures. SFRS(I) 15.123 contains a specific disclosure requirement relating to the judgements, and changes in
judgements, used in determining both of the following: the timing of satisfaction of performance obligations; and the
transaction price and the amounts allocated to performance obligations. Note that an entity should also disclose
information about significant judgements (SFRS(I) 1-1.122) and key sources of estimation uncertainty (SFRS(I) 1-1.125)
for the financial statements as a whole.
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December 31, 2018
Revenue recognition – determining the timing of satisfaction of performance obligations

SFRS(I) 15.123(a) Note 32 describes the expenditure required in the year for rectification work to be carried out on goods supplied to one of
the group’s major customers. These goods were delivered to the customer in the months of January to July 2018, and shortly
thereafter the defects were identified by the customer. Following negotiations, a schedule of works was agreed, which will
involve expenditure by the group until 2019. In the light of the problems identified, management was required to consider
whether it was appropriate to recognise the revenue from these transactions of $102 million in the current year, in line with
the group’s general policy of recognising revenue when goods are delivered, or whether it was more appropriate to defer
recognition until the rectification work was complete.
SFRS(I) 15.125 In making its judgement, management considered the detailed criteria for the recognition of revenue from the sale of goods,
set out in SFRS(I) 15 Revenue from Contracts with Customers and, in particular, whether the group had transferred to the
buyer the control of the goods. Following the detailed quantification of the group’s liability in respect of rectification work,
and the agreed limitation on the customer’s ability to require further work or to require replacement of the goods,
management is satisfied that control has been transferred and that recognition of the revenue in the current year is
appropriate, in conjunction with recognition of an appropriate provision for the rectification costs.
Capitalisation of borrowing costs

As described in Note 2, it is the group’s policy to capitalise borrowing costs directly attributable to the acquisition,
construction or production of qualifying assets. Capitalisation of the borrowing costs relating to construction of the group’s
premises in Malaysia was suspended in 2017, while the development was delayed as management reconsidered its detailed
plans. Capitalisation of borrowing costs recommenced in 2018 – following the finalisation of revised plans, and resumption
of the activities necessary to prepare the asset for its intended use. Borrowing costs have been capitalised from February
2018, as management is of the view that although construction of the premises was not restarted until May 2018, the
technical and administrative work associated with the project has recommenced in February 2018.
Business model assessment

Classification and measurement of financial assets depends on the results of the SPPI and the business model test (please
see financial assets sections of Note 2). The group determines the business model at a level that reflects how groups of
financial assets are managed together to achieve a particular business objective. This assessment includes judgement
reflecting all relevant evidence including how the performance of the assets is evaluated and their performance measured,
the risks that affect the performance of the assets and how these are managed and how the managers of the assets are
compensated. The group monitors financial assets measured at amortised cost or fair value through other comprehensive
income that are derecognised prior to their maturity to understand the reason for their disposal and whether the reasons
are consistent with the objective of the business for which the asset was held. Monitoring is part of the group’s continuous
assessment of whether the business model for which the remaining financial assets are held continues to be appropriate and
if it is not appropriate whether there has been a change in business model and so a prospective change to the classification
of those assets.
Deferred taxation on investment properties

For the purposes of measuring deferred tax liabilities or deferred tax assets arising from investment properties that are
measured using the fair value model, management has reviewed the group’s investment property portfolio and concluded
that, while certain of the group’s investment properties are depreciable, they are not held under a business model whose
objective is to consume substantially all of the economic benefits embodied in the investment properties over time, rather
than through sale. Therefore, in determining the group’s deferred taxation on investment properties, management has
determined that the presumption that investment properties measured using the fair value model are recovered through
sale is not rebutted.

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December 31, 2018
SFRS(I) 12.7(a) Control over GAAP Manufacturing Limited

SFRS(I) 12.9(b) Note 22 describes that GAAP Manufacturing Limited is a subsidiary of the group even though the group has only a 45%
ownership interest and has only 45% of the voting rights in GAAP Manufacturing Limited. GAAP Manufacturing Limited is
listed on the Hong Kong Stock Exchange. The group has held its 45% ownership since June 2014 and the remaining 55% of
the ownership interests are held by thousands of shareholders that are unrelated to the group.
Management assessed whether or not the group has control over GAAP Manufacturing Limited based on whether the group
has the practical ability to direct the relevant activities of GAAP Manufacturing Limited unilaterally. In making their
judgement, management considered the group’s absolute size of holding in GAAP Manufacturing Limited and the relative
size and dispersion of the shareholdings owned by the other shareholders. After assessment, management concluded that
the group has a sufficiently dominant voting interest to direct the relevant activities of GAAP Manufacturing Limited and
therefore the group has control over GAAP Manufacturing Limited.
SFRS(I) 12.7(a) Control over GAAP Leisure Pte Ltd

SFRS(I) 12.9(b) Note 22 describes that GAAP Leisure Pte Ltd is a subsidiary of the group although the group only owns a 45% ownership
interest in GAAP Leisure Pte Ltd. Based on the contractual arrangements between the group and other investors, the group
has the power to appoint and remove the majority of the board of directors of GAAP Leisure Pte Ltd that has the power to
direct the relevant activities of GAAP Leisure Pte Ltd. Therefore, management concluded that the group has the practical
ability to direct the relevant activities of GAAP Leisure Pte Ltd unilaterally and hence the group has control over GAAP Leisure
Pte Ltd.
SFRS(I) 12.7(b) Significant influence over PAAG Pte Ltd

SFRS(I) 12.9(e) Note 23 describes that PAAG Pte Ltd is an associate of the group although the group only owns a 17% ownership interest in
PAAG Pte Ltd. The group has significant influence over PAAG Pte Ltd by virtue of its contractual right to appoint two out of
seven directors to the board of directors of that company.
SFRS(I) 12.7(b),(c) Classification of JV Electronics Limited as a joint venture

JV Electronics Limited is a limited liability company whose legal form confers separation between the parties to the joint
arrangement and the company itself. Furthermore, there is no contractual arrangement or any other facts and circumstances
that indicate that the parties to the joint arrangement have rights to the assets and obligations for the liabilities of the joint
arrangement. Accordingly, JV Electronics Limited is classified as a joint venture of the group. See Note 24 for details.
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Key sources of estimation uncertainty
SFRS(I) 1-1.125 The key assumptions concerning the future, and other key sources of estimation uncertainty at the end of the reporting
SFRS(I) 1-1.129 period, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within
the next financial year, are discussed below.
Guidance notes
Where applicable, corresponding information for the previous financial year should also be disclosed.
Calculation of loss allowance

When measuring ECL, the group uses reasonable and supportable forward-looking information, which is based on
assumptions for the future movement of different economic drivers and how these drivers will affect each other.
Loss given default is an estimate of the loss arising on default. It is based on the difference between the contractual cash
flows due and those that the lender would expect to receive, taking into account cash flows from collateral and integral
credit enhancements.
Probability of default constitutes a key input in measuring ECL. Probability of default is an estimate of the likelihood of default
over a given time horizon, the calculation of which includes historical data, assumptions and expectations of future
conditions.
SFRS(I) 1-1.129(b) [Disclose the sensitivity of the loss allowance on trade receivables to the ECL rates, including the reasons for the sensitivity,
if necessary.]
Recoverability of internally-generated intangible asset

During the year, management reconsidered the recoverability of its internally-generated intangible asset, which is included
in its statement of financial position at December 31, 2018 at $3.24 million (December 31, 2017: $Nil, January 1, 2017:
$Nil). The project continues to progress in a very satisfactory manner, and customer reaction has reconfirmed management’s
previous estimates of anticipated revenues from the project. However, increased competitor activity has caused
management to reconsider its assumptions regarding future market shares and anticipated margins on these products.
Detailed sensitivity analysis has been carried out and management is confident that the carrying amount of the asset will be
recovered in full, even if returns are reduced. This situation will be closely monitored, and adjustments will be made in future
periods, if future market activity indicates that such adjustments are appropriate.
Impairment of goodwill
Determining whether goodwill is impaired requires an estimation of the value in use of the cash-generating units to which
goodwill has been allocated. The value in use calculation requires the entity to estimate the future cash flows expected to
arise from the cash-generating unit and a suitable discount rate in order to calculate present value. The carrying amount of
goodwill at the end of the reporting period was $4.04 million (December 31, 2017: $2.54 million, January 1, 2017: $2.75
million) after an impairment loss of $0.46 million (2017: $Nil) was recognised during the financial year. Details of the
impairment loss calculation are provided in Note 20.

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December 31, 2018
Useful lives of property, plant and equipment

As described in Note 2, the group reviews the estimated useful lives of property, plant and equipment as at each reporting
date. During the financial year, management determined that the useful life of certain items of equipment should be
shortened, due to developments in technology.
The financial effect of this reassessment, assuming the assets are held until the end of their estimated useful lives, is to
increase the consolidated depreciation expense in the current financial year and for the next 3 years, by the following
amounts:
$’000
2018 9
2019 7
2020 4
2021 2
SFRS(I) 13.93(g) Fair value measurements and valuation processes

SFRS(I) 13.IE65 Some of the group’s assets and liabilities are measured at fair value for financial reporting purposes. The Board of Directors
of the company has set up a valuation committee, which is headed up by the Chief Financial Officer of the company,
to determine the appropriate valuation techniques and inputs for fair value measurements.
In estimating the fair value of an asset or a liability, the group uses market-observable data to the extent it is available.
Where Level 1 inputs are not available, the group engages third party qualified valuers to perform the valuation.
The valuation committee works closely with the qualified external valuers to establish the appropriate valuation techniques
and inputs to the model. The Chief Financial Officer reports the valuation committee’s findings to the Board of Directors of
the company every quarter to explain the cause of fluctuations in the fair value of the assets and liabilities.
Information about the valuation techniques and inputs used in determining the fair value of various assets and liabilities are
disclosed in Note 4.
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December 31, 2018
4. Financial instruments, financial risks and capital management
(a) Categories of financial instruments
SFRS(I) 7.8 Guidance notes - Categories of financial instruments
The categories of financial assets and financial liabilities can be presented in the statement of financial position or in the
notes as shown below.
The following table sets out the financial instruments as at the end of the reporting period:
Group Company
December 31, December 31, January 1, December 31, December 31, January 1,
2018 2017 2017 2018 2017 2017
$’000 $’000 $’000 $’000 $’000 $’000
Financial Assets
SFRS(I) 7.8(f) Financial assets at amortised cost 228,066 196,366 154,166 91,445 56,542 53,978
SFRS(I) 7.8(a) Financial assets mandatorily measured at FVTPL 13,006 12,125 5,229 - - -
Derivative instruments:
Designated in hedge accounting relationships 5,038 2,938 1,433 - - -
Not designated in hedge accounting
relationships - - - - - -
SFRS(I) 7.8(h) Financial assets at FVTOCI
Debt instruments classified as at FVTOCI 8,815 8,721 8,658 - - -
Equity instruments designated as at FVTOCI 14,570 14,494 14,406 - - -
Financial Liabilities
SFRS(I) 7.8(g) Financial liabilities at amortised cost 572,579 568,492 464,607 31,392 7,586 10,061
Fair value through profit or loss (FVTPL):
SFRS(I) 7.8(e) Held-for-trading - - - - - -
SFRS(I) 7.8(e) Designated as at FVTPL - - - - - -
Derivative instruments:
Designated in hedge accounting relationships 273 - - - - -
Not designated in hedge accounting
relationships - - - - - -
Financial guarantee contracts 24 18 - - - -
Contingent consideration for a business
combination 75 - - - - -

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December 31, 2018
Guidance notes – Financial assets and financial liabilities designated as at FVTPL
Information on financial assets and financial liabilities designated as at FVTPL is required only if the entity has such
categories of financial instruments. The information may be presented as follows:
(i) Financial assets designated as at FVTPL
Group Company
2018 2017 2017 2018 2017 2017
$’000 $’000 $’000 $’000 $’000 $’000
Carrying amount of debt instruments

designated as at FVTPL xx xx xx xx xx xx
SFRS(I) 7.9(c) Cumulative changes in fair value
attributable to changes in credit risk xx xx xx xx xx xx
SFRS(I) 7.9(c) Changes in fair value attributable to
changes in credit risk recognised
during the period xx xx n.a. xx xx n.a.
SFRS(I) 7.9(a) At the reporting date, there are no significant concentrations of credit risk for debt instruments designated at FVTPL. The
carrying amount reflected above represents the group’s maximum exposure to credit risk for such assets.
SFRS(I) 7.9(b),(d) (ii) Credit derivatives over financial assets designated as at FVTPL
SFRS(I) 7.36(b)
Group Company
2018 2017 2018 2017
$’000 $’000 $’000 $’000
Opening fair value xx xx xx xx

Additions during the year xx xx xx xx
Realised during the period xx xx xx xx
Change in fair value xx xx xx xx
Closing fair value xx xx xx xx
Cumulative fair value changes in credit derivatives over financial assets designated as at FVTPL since the assets were
designated amount to $xx (December 31, 2017: $xx, January 1, 2017: $xx).
75
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December 31, 2018
(iii) Financial liabilities designated as at FVTPL
Financial liabilities designated at FVTPL (with changes attributable to the change in credit risk being recognised in other
comprehensive income)
Group Company
2018 2017 2017 2018 2017 2017
$’000 $’000 $’000 $’000 $’000 $’000
SFRS(I) 7.10(a) Cumulative changes in fair value

attributable to changes in credit risk
recognised in other comprehensive
income (i) xx xx xx xx xx xx
SFRS(I) 7.10(d) Cumulative changes in fair value
recognised in other comprehensive
income – relating to financial
liabilities derecognised during the
year xx xx xx xx xx xx
SFRS(I) 7.10(b) Difference between carrying amount

and maturity amount:
Cumulative preference shares
at fair value xx xx xx xx xx xx
Amount payable at maturity xx xx xx xx xx xx
xx xx xx xx xx xx
SFRS(I) 7.11(a),(c) (i) The change in fair value attributable to change in credit risk is calculated as the difference between total change in
fair value of cumulative preference shares ($xx) and the change in fair value of cumulative redeemable preference
shares due to change in market risk factors alone ($xx), and is recognised in other comprehensive income. The
change in fair value due to market risk factors was calculated using benchmark interest yield curves as at the end of
the reporting period holding credit risk margin constant. The fair value of cumulative redeemable preference shares
was estimated by discounting future cash flows using quoted benchmark interest yield curves as at the end of the
reporting period and by obtaining lender quotes for borrowings of similar maturity to estimate credit risk margin.
SFRS(I) 7.11(c) A qualitative assessment of the terms of the cumulative preference shares and the matching interest rate swap (see
Note xx) indicates that the effects of changes in the cumulative preference shares’ credit risk are not expected to be
offset by changes in the fair value of the interest rate swap. Accordingly, management determines that presenting
the effects of changes in the cumulative preference shares’ credit risk in other comprehensive income would not
create or enlarge an accounting mismatch in profit or loss.

Source

December 31, 2018
Financial liabilities designated at FVTPL (with changes attributable to the change in credit risk being recognised in profit
or loss)
Group Company
2018 2017 2017 2018 2017 2017
$’000 $’000 $’000 $’000 $’000 $’000
SFRS(I) 7.10A(a) Changes in fair value attributable to

changes in credit risk recognised
in profit or loss during the year (i) xx xx n.a. xx xx n.a.
SFRS(I) 7.10A(a) Cumulative changes in fair value
recognised in profit or loss xx xx xx xx xx xx
SFRS(I) 7.10A(b) Difference between carrying amount

and maturity amount:
Cumulative preference shares
at fair value xx xx xx xx xx xx
Amount payable at maturity xx xx xx xx xx xx
xx xx xx xx xx xx
Note:
SFRS(I) 7.10A If an entity has designated a financial liability as at FVTPL and is required to present all changes in the fair value of that
SFRS(I) 7.11(c) liability (including the effects of changes in the credit risk of the liability) in profit or loss (because recognising changes in
the credit risk of the liability in other comprehensive income would enlarge an accounting mismatch in profit or loss), it
shall disclose:
 the amount of change, during the period and cumulatively, in the fair value of the financial liability that is attributable
to changes in the credit risk of that liability (see above);
 the difference between the financial liability’s carrying amount and the amount the entity would be contractually
required to pay at maturity to the holder of the obligation (see above); and
 a detailed description of the methodologies used to determine whether presenting the effects of changes in a liability’s
credit risk in other comprehensive income would create or enlarge an accounting mismatch in profit or loss, and a
detailed description of the economic relationship between the characteristics of the liability and the characteristics of
the other financial instrument, when the effects of changes in the liability’s credit risk are recognised in profit or loss.
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December 31, 2018
(b) Financial instruments subject to offsetting, enforceable master netting arrangements and similar
agreements
Group
SFRS(I) 7.13C As at December 31, 2018 ($’000)
Financial assets
(a) (b) (c) = (a) – (b) (d) (e) = (c) + (d)

Related amounts not set off
in the statement of financial
position
Type of Gross Gross Net amounts Financial Cash Net amount
financial amounts of amounts of of financial instruments collateral
asset recognised recognised assets received
financial financial presented in
assets liabilities set the
off in the statement of
statement of financial
financial position
position
Interest rate swaps 3,914 - 3,914 - (14) 3,900
Forward foreign exchange 1,124 - 1,124 (273) - 851

contracts
Trade receivables 7,035 (2,035) 5,000 - - 5,000
Total 12,073 (2,035) 10,038 (273) (14) 9,751
Financial liabilities
(a) (b) (c) = (a) – (b) (d) (e) = (c) + (d)

position
liability recognised recognised liabilities received
liabilities assets set off the
in the statement of
financial position
position
Forward foreign exchange 273 - 273 (273) - -

contracts
Trade payables 2,035 (2,035) - - - -
Total 2,308 (2,035) 273 (273) - -

Source

December 31, 2018
Group
As at December 31, 2017 ($’000)
Financial assets
(a) (b) (c) = (a) – (b) (d) (e) = (c) + (d)

position
financial position
position
Forward foreign exchange 2,938 - 2,938 - (38) 2,900

contracts
Total 2,938 - 2,938 - (38) 2,900
Group
As at January 1, 2017 ($’000)
Financial assets
(a) (b) (c) = (a) – (b) (d) (e) = (c) + (d)

position
financial position
position
Forward foreign exchange 1,433 - 1,433 - - 1,433

contracts
Total 1,433 - 1,433 - - 1,433
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December 31, 2018
SFRS(I) 7.B46 In reconciling the “Net amounts of financial assets and financial liabilities presented in the statement of financial position”
to the line item amounts presented in the statement of financial position, the above amounts represent only those which
are subject to offsetting, enforceable master netting arrangements and similar agreements. The residual amounts relate to
those that are not in scope of the offsetting disclosures.
SFRS(I) 7.13E [With respect to the financial instruments disclosed in column (d) of the tables above, include a description of the rights of
set off associated with the entity's recognised financial assets and recognised financial liabilities subject to enforceable
master netting arrangements and similar agreements, including the nature of those rights.]
The company does not have any financial instruments which are subject to enforceable master netting arrangements or
similar netting agreements.
Guidance notes
SFRS(I) 7 requires entities to disclose information about rights of set-off and related arrangements (such as collateral
posting requirements) for financial instruments under an enforceable master netting agreement or similar agreement,
irrespective of whether they are set off in accordance with paragraph 42 of SFRS(I) 1-32.
SFRS(I) 7.13F If the disclosures required under SFRS(I) 7 are disclosed in more than one notes, the entity shall cross-refer between
those notes.
SFRS(I) 7.B51 The disclosures required by SFRS(I) 7.13C(a)–(e) may be grouped by type of financial instrument or transaction
SFRS(I) 7.B52 (for example, derivatives, repurchase and reverse repurchase agreements or securities borrowing and securities lending
agreements), or alternatively by counterparty. If an entity provides the required information by counterparty, the entity is
not required to identify the counterparties by name. However, designation of counterparties (Counterparty A,
Counterparty B, Counterparty C, etc.) shall remain consistent from year to year for the years presented to maintain
comparability. Qualitative disclosures shall be considered so that further information can be given about the types of
counterparties. When disclosure of the amounts in paragraph 13C(c)–(e) is provided by counterparty, amounts that are
individually significant in terms of total counterparty amounts shall be separately disclosed and the remaining individually
insignificant counterparty amounts shall be aggregated into one line item.
SFRS(I) 7.31 (c) Financial risk management policies and objectives

SFRS(I) 7.32
SFRS(I) 7.33 The group has documented financial risk management policies. These policies set out the group’s overall business strategies
and its risk management philosophy. The group’s overall financial risk management programme seeks to minimise potential
adverse effects of financial performance of the group. The Board of Directors provides written principles for overall financial
risk management and written policies covering specific areas, such as market risk (including foreign exchange risk, interest
rate risk and equity price risk), credit risk, liquidity risk, cash flow interest rate risk, use of derivative financial instruments
and investing excess cash. Such written policies are reviewed annually by the Board of Directors and periodic reviews are
undertaken to ensure that the group’s policy guidelines are complied with. Risk management is carried out by the Treasury
Department under the policies approved by the Board of Directors.
SFRS(I) 21A(a) The group uses a variety of derivative financial instruments to manage its exposure to interest rate and foreign currency
risk, including:
 Forward exchange contracts to hedge the exchange rate risks arising from trade receivables and trade payables, and
firm commitments to buy or sell goods; and
 Interest rate swaps to mitigate the risk of rising interest rates.
The group does not hold or issue derivative financial instruments for speculative purposes.
SFRS(I) 7.33(c) There has been no change to the group’s exposure to these financial risks or the manner in which it manages and measures
SFRS(I) 7.40(c) the risk. Market risk exposures are measured using sensitivity analysis indicated below.

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December 31, 2018
Guidance notes – Sensitivity analysis
SFRS(I) 7.41 If the entity prepares a sensitivity analysis such as value-at-risk that reflects interdependencies between risk variables
(e.g. interest rates and exchange rates) and uses it to manage financial risks, it may use that value-at-risk sensitivity
analysis in place of the analysis specified in SFRS(I) 7.40 which are as illustrated in the following sections for each type of
market risk.
SFRS(I) 7.B19 In determining what a reasonably possible change in the relevant risk variable is for sensitivity analysis, an entity shall
consider:
(a) The economic environments in which it operates. This shall not include remote or “worst case” scenarios or “stress
test”; and
(b) The effects of changes reasonably possible over the period until the entity next presents these disclosures (usually
the next annual reporting period).
SFRS(I) 7.33 (i) Foreign exchange risk management

SFRS(I) 7.34
The group transacts business in various foreign currencies, including the United States dollar, Euro and Japanese yen and
therefore is exposed to foreign exchange risk.
Guidance notes – Information on foreign currency balances
SFRS(I) 7.34(a) The table below provides an example of summary quantitative data about exposure to foreign exchange risks arising from
monetary assets and liabilities at the end of the reporting period that an entity may provide internally to key management
personnel.
SFRS(I) 7.34(a) As at each reporting date, the carrying amounts of monetary assets and monetary liabilities denominated in currencies other
than the respective group entities’ functional currencies are as follows:
Group
Liabilities Assets
2018 2017 2017 2018 2017 2017
$’000 $’000 $’000 $’000 $’000 $’000
United States dollar 54,111 32,988 30,745 61,392 84,313 58,196

Euro 13,669 10,643 8,670 4,507 4,062 4,287
Japanese yen 530 842 720 4,450 5,521 7,130
Company
Liabilities Assets
2018 2017 2017 2018 2017 2017
$’000 $’000 $’000 $’000 $’000 $’000
United States dollar 1,332 1,824 1,642 37,394 29,226 20,193

Euro 560 485 399 - - -
Japanese yen - - - - - -
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December 31, 2018
Companies in the group use forward contracts to hedge their exposure to foreign currency risk in the local reporting currency.
The Treasury Department is responsible for hedging the net position in each borrowing currency.
The company has a number of investments in foreign subsidiaries, whose net assets are exposed to currency translation
risk. The group does not currently designate its foreign currency denominated debt as a hedging instrument for the purpose
of hedging the translation of its foreign operations.
Further details on the forward exchange derivative hedging instruments are found in Note 14.
Guidance notes – Quantitative data disclosures
SFRS(I) 7.35 If the quantitative data disclosed as at the reporting date are unrepresentative of an entity’s exposure to risk during the
period, an entity shall provide further information that is representative.
SFRS(I) 7.IG20 To meet this requirement, an entity might disclose the highest, lowest and average amount of risk to which it was exposed
during the period. For example, if an entity typically has a large exposure to a particular currency, but at year-end unwinds
the position, the entity might disclose a graph that shows the exposure at various times during the period, or disclose the
highest, lowest and average exposures.
SFRS(I) 7.40(a),(b) Foreign currency sensitivity
The following table details the sensitivity to a 10% increase and decrease in the relevant foreign currencies against the
functional currency of each group entity. 10% is the sensitivity rate used when reporting foreign currency risk internally to
key management personnel and represents management’s assessment of the reasonably possible change in foreign
exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts
their translation at the period end for a 10% change in foreign currency rates. The sensitivity analysis includes external
loans as well as loans to foreign operations within the group where they gave rise to an impact on the group’s profit or loss
and/or equity.
If the relevant foreign currency weakens by 10% against the functional currency of each group entity, profit or loss and
other equity will increase (decrease) by:
United States dollar impact Euro impact Japanese yen impact

2018 2017 2018 2017 2018 2017
$’000 $’000 $’000 $’000 $’000 $’000
Group
SFRS(I) 7.40(a) Profit or loss (728) (5,132) (i) 916 658 (i) (392) (468) (i)
SFRS(I) 7.40(a) Other equity (33) (47) (ii) 70 69 (ii) - -
Company
SFRS(I) 7.40(a) Profit or loss (3,606) (2,740) (iii) 56 49 (i) - -

SFRS(I) 7.40(a) Other equity - - - - - -

Source

December 31, 2018
If the relevant foreign currency strengthens by 10% against the functional currency of each group entity, profit or loss and
other equity will increase (decrease) by:
United States dollar impact Euro impact Japanese yen impact

2018 2017 2018 2017 2018 2017
$’000 $’000 $’000 $’000 $’000 $’000
Group
SFRS(I) 7.40(a) Profit or loss 728 5,132 (i) (916) (658) (i) 392 468 (i)
SFRS(I) 7.40(a) Other equity 33 47 (ii) (70) (69) (ii) - -
Company
SFRS(I) 7.40(a) Profit or loss 3,606 2,740 (iii) (56) (49) (i) - -
SFRS(I) 7.40(a) Other equity - - - - - -
(i) This is mainly attributable to the exposure outstanding on receivables and payables at the end of the reporting period
in the group.
(ii) This is mainly as a result of the changes in fair value of derivative instruments designated as cash flow hedges.
(iii) This is mainly attributable to the exposure to outstanding US dollar inter-company receivables at the end of the
reporting period.
The group’s sensitivity to foreign currency has decreased during the current year mainly due to the disposal of US dollar
investments and the reduction in US dollar sales in the last quarter of the financial year which has resulted in lower US dollar
denominated trade receivables.
Guidance notes – Sensitivity analyses
SFRS(I) 7.42 When the sensitivity analyses disclosed in accordance with SFRS(I) 7.40 or 41 are unrepresentative of a risk inherent in
a financial instrument (for example because the year-end exposure does not reflect the exposure during the year), the
entity shall disclose that fact and the reason it believes the sensitivity analyses are unrepresentative. An example of such
a disclosure may be as follows:
In management’s opinion, the sensitivity analysis is unrepresentative of the inherent foreign exchange risk as the year
end exposure does not reflect the exposure during the year. US dollar denominated sales are seasonal with lower sales
volume in the last quarter of the financial year, which results in a reduction in US dollar receivables at the end of the
reporting period.
83
Source

December 31, 2018
SFRS(I) 7.33 (ii) Interest rate risk management

SFRS(I) 7.34
Summary quantitative data of the group’s interest-bearing financial instruments can be found in section (vi) of this note.
The group’s policy is to maintain cash equivalents and borrowings in fixed rate instruments. The group sometimes borrows
at variable rates and uses interest rate swaps as cash flow hedges of future interest payments, which have the economic
effect of converting borrowings from floating rates to fixed rates. The interest rate swaps allow the group to raise long-term
borrowings at floating rates and swap them into fixed rates that are lower than those available if the group borrowed at
fixed rates directly. Under the interest rate swaps, the group agrees with other parties to exchange, at specified intervals,
the difference between fixed contract rates and floating rate interest amounts calculated by reference to the agreed notional
principal amounts. Further details of the interest rate swaps can be found in Note 14.
SFRS(I) 7.40(a),(b) Interest rate sensitivity
The sensitivity analyses below have been determined based on the exposure to interest rates for both derivatives and
non-derivative instruments at the end of the reporting period and the stipulated change taking place at the beginning of the
financial year and held constant throughout the reporting period in the case of instruments that have floating rates.
A 50 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and
represents management’s assessment of the reasonably possible change in interest rates.
If interest rates had been 50 basis points higher or lower and all other variables were held constant, the group’s:
 Profit for the year ended December 31, 2018 would increase/decrease by $1.8 million (2017: increase/decrease by
$2.3 million). This is mainly attributable to the group’s exposure to interest rates on its variable rate borrowings; and
 Other equity reserves would decrease/increase by $45,000 (2017: decrease/increase by $45,000) mainly as a result of
the changes in the fair value of fixed rate instruments measured at FVTOCI.
The group’s sensitivity to interest rates cash flow risks has decreased during the current period mainly due to the reduction
in variable rate debt instruments and the increase in interest rate swaps.
The company’s profit and loss and equity are not affected by the changes in interest rates as the interest-bearing instruments
carry fixed interest and are measured at amortised cost.

Source

December 31, 2018
SFRS(I) 7.33 (iii) Equity price risk management

SFRS(I) 7.34
The group is exposed to equity risks arising from equity investments classified as held-for-trading and at FVTOCI. Equity
investments measured at FVTOCI are held for strategic rather than trading purposes. The group does not actively trade such
investments.
Further details of these equity investments can be found in Notes 12 and 25.
SFRS(I) 7.40(a),(b) Equity price sensitivity
The sensitivity analyses below have been determined based on the exposure to equity price risks at the end of the reporting
period.
In respect of equity investments at FVTOCI, if the inputs to the valuation model had been 10% higher/lower while all other
variables were held constant:
 The group’s net profit for the year ended December 31, 2018 would have been unaffected as the equity investments are
classified as at FVTOCI; and
 The group’s asset revaluation reserves would decrease/increase by $1.4 million (2017: decrease/increase by
$1.3 million).
In respect of held-for-trading equity investments, if equity prices had been 10% higher/lower:
 The group’s net profit for the year ended December 31, 2018 would decrease/increase by $1.2 million
(2017: decrease/increase by $1.1 million).
The group’s sensitivity to equity prices has not changed significantly from the prior year.
85
Source

December 31, 2018
SFRS(I) 7.7 (iv) Overview of the group’s exposure to credit risk

SFRS(I) 7.31
SFRS(I) 7.35K(a) Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the
group. As at December 31, 2018, the group’s maximum exposure to credit risk without taking into account any collateral
held or other credit enhancements, which will cause a financial loss to the group due to failure to discharge an obligation by
the counterparties and financial guarantees provided by the group arises from:
 the carrying amount of the respective recognised financial assets as stated in the consolidated statement of financial
position; and
SFRS(I) 7.35M  the maximum amount the group would have to pay if the financial guarantee is called upon, irrespective of the likelihood
SFRS(I) 7.B10(c) of the guarantee being exercised as disclosed in Note 4(c)(vi). The related loss allowance is disclosed in the respective
notes to the financial statements.
SFRS(I) 7.35B(a) In order to minimise credit risk, the group has tasked its credit management committee to develop and maintain the group’s
SFRS(I) 7.35F(a)(i) credit risk gradings to categorise exposures according to their degree of risk of default. The credit rating information is
supplied by independent rating agencies where available and, if not available, the credit management committee uses other
publicly available financial information and the group’s own trading records to rate its major customers and other debtors.
The group’s exposure and the credit ratings of its counterparties are continuously monitored and the aggregate value of
transactions concluded is spread amongst approved counterparties.
The group’s current credit risk grading framework comprises the following categories:
Category Description Basis for recognising

expected credit losses (ECL)
Performing The counterparty has a low risk of default and does not 12-month ECL
have any past-due amounts.
Doubtful Amount is >30 days past due or there has been a Lifetime ECL – not credit-impaired
significant increase in credit risk since initial recognition.
In default Amount is >90 days past due or there is evidence Lifetime ECL – credit-impaired
indicating the asset is credit-impaired.
Write-off There is evidence indicating that the debtor is in severe Amount is written off
financial difficulty and the group has no realistic prospect
of recovery.
Guidance notes
SFRS(I) 7.35M SFRS(I) 7.35M requires the disclosure of information about an entity’s credit risk exposure and significant concentrations
SFRS(I) 7.B8I of credit risk by credit risk grading at the reporting date. The number of credit risk rating grades used to disclose such
information should be consistent with the number that the entity reports to key management personnel for credit risk
management purposes. However, in some cases, delinquency and past due information may be the only borrower-specific
information available without undue cost or effort, which is used to assess whether credit risk has increased significantly
since initial recognition. In such cases, an entity should provide an analysis of those financial assets by past due status.

Source

December 31, 2018
SFRS(I) 7.35M The tables below detail the credit quality of the group’s financial assets and other items, as well as maximum exposure to
SFRS(I) 7.35N credit risk by credit risk rating grades:
SFRS(I) 7.36(a)
External Internal Gross
credit credit 12-month or carrying Loss Net carrying
Note rating rating lifetime ECL amount allowance amount
$’000 $’000 $’000
Group
December 31, 2018
Trade receivables 8.1 n.a. (i) Lifetime ECL 93,027 (3,996) 89,031
(simplified
approach)
Other receivables 8.2 n.a. Performing 12m ECL 24,231 - 24,231
Contract assets 9 n.a. (i) Lifetime ECL 14,758 (148) 14,610
(simplified
approach)
Finance lease receivables 11 n.a. (i) Lifetime ECL 76,497 - 76,497
(simplified
approach)
Debt securities 13 BBB- Performing 12m ECL 27,548 - 27,548
Redeemable notes 25 AA Performing 12m ECL 8,303 - 8,303(ii)
(4,144)
December 31, 2017
(simplified
approach)
Other receivables 8.2 n.a. Performing 12m ECL 673 - 673
(simplified
approach)
(simplified
approach)
(4,571)
January 1, 2017
(simplified
approach)
Other receivables 8.2 n.a. Performing 12m ECL 670 - 670
(simplified
approach)
(simplified
approach)
(4,338)
87
Source

December 31, 2018
Internal Gross
External credit 12-month or carrying Loss Net carrying
Note credit rating rating lifetime ECL amount (i) allowance amount
$’000 $’000 $’000
Company
December 31, 2018
December 31, 2017
January 1, 2017
(i) For trade receivables, contract assets and finance lease receivables, the group has applied the simplified approach in
SFRS(I) 9 to measure the loss allowance at lifetime ECL. The group determines the expected credit losses on these items
by using a provision matrix, estimated based on historical credit loss experience based on the past due status of the debtors,
adjusted as appropriate to reflect current conditions and estimates of future economic conditions. Accordingly, the cred it
risk profile of these assets is presented based on their past due status in terms of the provision matrix. Notes 8, 9 and 11
include further details on the loss allowance for these assets respectively.
(ii) The loss allowance on redeemable notes measured at FVTOCI is recognised against other comprehensive income and
accumulated in the investment revaluation reserve. See Note 25.
SFRS(I) 7.36(a),(b) The carrying amount of the group’s financial assets at FVTPL as disclosed in Note 12 best represents their respective
SFRS(I) 7.B10(b) maximum exposure to credit risk. The group holds no collateral over any of these balances.
Guidance notes
For all financial instruments within the scope of SFRS(I) 7, but to which the impairment requirements in SFRS(I) 9 are not
applied, SFRS(I) 7.36(a) requires an entity to disclose by class of financial instrument the amount that best represents
the entity’s maximum credit risk exposure at the end of the reporting period, excluding the effect of any collateral and
other amounts that do not qualify for offset in accordance with SFRS(I) 1-32. Examples of financial instruments that are
within the scope of SFRS(I) 7 but that are not subject to the SFRS(I) 9 impairment requirements include:
 Financial assets and derivatives measured at FVTPL;
 Financial guarantee contracts issued measured at FVTPL; and
 Loan commitments issued measured at FVTPL.
Equity investments, regardless of whether they are measured at FVTPL or FVTOCI, are also in the scope of SFRS(I) 7 but
not subject to the SFRS(I) 9 impairment requirements; however, they do not give rise to an exposure to credit risk and
therefore are not subject to the SFRS(I) 7 credit risk disclosures.

Source

December 31, 2018
SFRS(I) 7.33 (v) Credit risk management

SFRS(I) 7.34
SFRS(I) 7.35B In order to minimise credit risk, the group has adopted a policy of only dealing with creditworthy counterparties and obtaining
sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults. The group only
transacts with entities that are rated the equivalent of investment grade and above and investments in these instruments,
SFRS(I) 7.35F(a)(i) including debentures and redeemable notes as detailed in Notes 13 and 25, where the counterparties have minimum BBB-
credit rating, are considered to have low credit risk for the purpose of impairment assessment. The credit rating information
is supplied by independent rating agencies where available and, if not available, the group uses other publicly available
financial information and its own trading records to rate its major customers. The group's exposure and the credit ratings of
its counterparties are continuously monitored and the aggregate value of transactions concluded is spread amongst approved
counterparties.
SFRS(I) 7.34(c) Before accepting any new customer, a dedicated team responsible for the determination of credit limits uses an external
credit scoring system to assess the potential customer's credit quality and defines credit limits by customer. Limits and
scoring attributed to customers are reviewed and approved twice a year by the risk management committee. 80% of the
trade receivables have the best credit scoring attributable under the external credit scoring system used by the group.
Credit approvals and other monitoring procedures are also in place to ensure that follow-up action is taken to recover
overdue debts. Furthermore, the group reviews the recoverable amount of each trade debt and debt investment on an
individual basis at the end of the reporting period to ensure that adequate loss allowance is made for irrecoverable amounts.
In this regard, management considers that the group’s credit risk is significantly reduced.
Trade receivables consist of a large number of customers, spread across diverse industries and geographical areas. Ongoing
credit evaluation is performed on the financial condition of accounts receivable and, where appropriate, credit guarantee
insurance cover is purchased.
SFRS(I) 7.B8 Of the trade receivables balance at the end of the year, $8.3 million (December 31, 2017: $9.8 million, January 1, 2017:
SFRS(I) 7.34(c) $7.5 million) is due from Company A, the group's largest customer. Apart from this, the group does not have significant
SFRS(I) 7.35B(c) credit risk exposure to any single counterparty or any group of counterparties having similar characteristics. The group
defines counterparties as having similar characteristics if they are related entities. Concentration of credit risk related t o
Company A did not exceed 20% of gross monetary assets at any time during the year. Concentration of credit risk to any
other counterparty did not exceed 5% of gross monetary assets at any time during the year. The concentration of credit risk
is limited due to the fact that the customer base is large and unrelated.
SFRS(I) 7.B10(b) The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks with high
credit-ratings assigned by international credit-rating agencies.
SFRS(I) 7.B10(c) In addition, the group is exposed to credit risk in relation to financial guarantees given to banks. The group's maximum
exposure in this respect is the maximum amount the group could have to pay if the guarantee is called on.
[If there is an amount of loss allowance on financial guarantee contracts provided by the entity, the following is applicable
illustrative disclosure:
As at December 31, 2018, an amount of $xx (December 31, 2017: $xx, January 1, 2017: $xx) has been recognised in the
consolidated financial position as loss allowance for the financial guarantee contracts (see Note 28).]
89
Source

December 31, 2018
Collateral held as security and other credit enhancements
SFRS(I) 7.35K(b) The group does not hold any collateral or other credit enhancements to cover its credit risks associated with its financial
assets, except that the credit risk associated with finance lease receivables is mitigated because they are secured over the
leased storage equipment. The carrying amount of finance lease receivables amounts to $79.7 million (December 31, 2017:
$64.2 million, January 1, 2017: $53.0 million) and the fair value of the leased assets is estimated to be approximately $79.0
million (December 31, 2017: $64.0 million, January 1, 2017: $53.0 million). The group is not permitted to sell or repledge
the collateral in the absence of default by the lessee. There has not been any significant changes in the quality of the
collaterals held for finance lease receivables. The group has not recognised a loss allowance for the finance lease receivables
as a result of these collaterals.
Guidance notes - Disclosure of collateral held as security and other credit enhancements
For all financial instruments to which the impairment requirements in SFRS(I) 9 are applied, SFRS(I) 7.35K(b) and (c)
specifies that entities should disclose the following:
 a narrative description of collateral held as security and other credit enhancements, including:
(i) a description of the nature and quality of the collateral held;
(ii) an explanation of any significant changes in the quality of that collateral or credit enhancements as a result of
deterioration or changes in the collateral policies of the entity during the reporting period; and
(iii) information about financial instruments for which an entity has not recognised a loss allowance because of the
collateral.
 quantitative information about the collateral held as security and other credit enhancements (for example,
quantification of the extent to which collateral and other credit enhancements mitigate credit risk) for financial assets
that are credit-impaired at the reporting date.
For all financial instruments within the scope of SFRS(I) 7, but to which the impairment requirements in SFRS(I) 9 are not
applied, SFRS(I) 7.36(b) specifies that entities should give a description of collateral held as security and of other credit
enhancements, and their financial effect (e.g. a quantification of the extent to which collateral and other credit
enhancements mitigate credit risk) in respect of the amount that best represents the maximum exposure to credit risk.
SFRS(I) 7.33 (vi) Liquidity risk management

SFRS(I) 7.39(c)
The group maintains sufficient cash and cash equivalents, and internally generated cash flows to finance their activities.
The Treasury Department finances their liquidity through internally generated cash flows and minimises liquidity risk by
keeping committed credit lines available. Undrawn facilities are disclosed in Note 27.
Guidance notes
SFRS(I) 7.34(a) The tables below include the weighted average effective interest rate and reconciliations to the carrying amounts in the
statement of financial position as an example of summary quantitative data about exposure to interest rates at the end of
the reporting period that an entity may provide internally to key management personnel. An entity must use its judgement
to determine an appropriate number of time bands. For a non-financial institution, an appropriate time band could be:
“On demand or within 1 year”, “Within 2 to 5 years” and “After 5 years”.

Source

December 31, 2018
SFRS(I) 7.34 Liquidity and interest risk analyses

SFRS(I) 7.35
SFRS(I) 7.39(a)
Non-derivative financial liabilities
The following tables detail the remaining contractual maturity for non-derivative financial liabilities. The tables have been
drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the group and the
company can be required to pay. The table includes both interest and principal cash flows. The adjustment column represents
the possible future cash flows attributable to the instrument included in the maturity analysis which is not included in the
carrying amount of the financial liability on the statement of financial position.
Weighted
average
effective On demand
interest or within Within
Group rate 1 year 2 to 5 years After 5 years Adjustment Total
% $’000 $’000 $’000 $’000 $’000
December 31, 2018
Non-interest bearing - 185,107 75 - - 185,182

Finance lease liability (fixed rate) 8.5 1,655 1,014 - (276) 2,393
Variable interest rate instruments 7.7 118,273 239,116 - (69,000) 288,389
Fixed interest rate instruments 7.8 - 114,690 - (18,000) 96,690
Financial guarantee contracts - 2,000 - - (1,976) 24
307,035 354,895 - (89,252) 572,678
December 31, 2017
Non-interest bearing - 128,462 - - - 128,462

Fixed interest rate instruments 8.0 - 89,394 - (17,000) 72,394
Financial guarantee contracts - 1,600 - - (1,582) 18
242,668 464,307 - (138,465) 568,510
January 1, 2017

Fixed interest rate instruments - - - - - -
Financial guarantee contracts - - - - - -
138,317 464,573 - (138,283) 464,607
91
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December 31, 2018
SFRS(I) 7.B10(c) The amounts included above for financial guarantee contracts are the maximum amounts the group could be forced to settle
under the arrangement for the full guaranteed amount if that amount is claimed by the counterparty to the guarantee. Based
on expectations at the end of the reporting period, the group considers that it is more likely than not that such an amount
will not be payable under the arrangement. However, this estimate is subject to change depending on the probability of the
counterparty claiming under the guarantee which is a function of the likelihood that the financial receivables held by the
counterparty which are guaranteed suffer credit losses.
Weighted
average
effective On demand
interest or within Within After 5
Company rate 1 year 2 to 5 years years Adjustment Total
% $’000 $’000 $’000 $’000 $’000
December 31, 2018

Fixed interest rate instruments 7.0 1,250 25,077 - (2,000) 24,327
8,315 25,077 - (2,000) 31,392
December 31, 2017
January 1, 2017
Guidance notes
SFRS(I) 7 clarifies the following:
SFRS(I) 7 App A  Liquidity risk disclosures apply only to financial liabilities that are settled by delivering cash or another financial asset.
This excludes financial liabilities that are settled by the entity by delivering its own equity instruments or
non-financial assets.
SFRS(I) 7.B10A  An entity has to disclose summary quantitative data about its exposure to liquidity risk on the basis of information
provided internally to key management personnel, and explain how the data is determined.
SFRS(I) 7.B10A  If outflows of cash (or another financial asset) included in those data could either occur significantly earlier than
indicated in the data, or for significantly different amounts from those indicated in the data, an entity has to state the
fact and provide quantitative information that enables users to evaluate the extent of risk, unless information is
included in the liquidity risk management or maturity analysis disclosures above.
SFRS(I) 7.B11C(c)  For issued financial guarantee contracts, an entity should disclose the maximum amount of guarantee in the
contractual maturity analysis, allocated to the earliest period in which it could be called.

Source

December 31, 2018
SFRS(I) 7.B11E Non-derivative financial assets
The following table details the expected maturity for non-derivative financial assets. The inclusion of information on
non-derivative financial assets is necessary in order to understand the group’s liquidity risk management as the group’s
liquidity risk is managed on a net asset and liability basis. The tables below have been drawn up based on the undiscounted
contractual maturities of the financial assets including interest that will be earned on those assets except where the group
and the company anticipates that the cash flow will occur in a different period. The adjustment column represents the
possible future cash flows attributable to the instrument included in the maturity analysis which are not included in the
carrying amount of the financial asset on the statement of financial position.
Weighted
average
effective On demand
Group rate 1 year 2 to 5 years years Adjustment Total
% $’000 $’000 $’000 $’000 $’000
December 31, 2018

Finance lease receivables (fixed rate) 11.5 27,526 60,722 - (11,751) 76,497
Variable interest rate instruments - 5,177 - - - 5,177
177,547 72,830 - (13,496) 236,881
December 31, 2017

Variable interest rate instruments - 604 - - - 604
152,597 64,488 - (11,998) 205,087
January 1, 2017

Variable interest rate instruments - 1,804 - - - 1,804
112,028 63,995 - (13,199) 162,824
93
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December 31, 2018
Weighted
average
effective On demand
Company rate 1 year 2 to 5 years years Adjustment Total
% $’000 $’000 $’000 $’000 $’000
December 31, 2018
December 31, 2017
January 1, 2017
Guidance notes
SFRS(I) 7.B11E There is an apparent conflict between SFRS(I) 7 which requires the disclosure of a liquidity analysis for all financial liabilities
and SFRS(I) 1-1.65 which states that “SFRS(I) 7 requires disclosure of the maturity dates of financial assets and financial
liabilities” [emphasis added]. An entity is not required to disclose a maturity analysis for financial assets in all cases. The
minimum required disclosure is for a maturity analysis for financial liabilities only. However, a maturity analysis shall be
disclosed for financial assets if it holds financial assets for managing liquidity risk and that information is necessary to
enable users of its financial statements to evaluate the nature and extent of liquidity risk.

Source

December 31, 2018
SFRS(I) 7.39(b) Derivative financial instruments
The following table details the liquidity analysis for derivative financial instruments. The table has been drawn up based on
the undiscounted net cash inflows (outflows) on the derivative instrument that settle on a net basis and the undiscounted
gross inflows and (outflows) on those derivatives that require gross settlement. When the amount payable or receivable is
not fixed, the amount disclosed has been determined by reference to the projected interest rates as illustrated by the yield
curves existing at the end of the reporting period.
On demand or Within
Group within 1 year 2 to 5 years After 5 years
$’000 $’000 $’000
December 31, 2018
Net settled:
Interest rate swaps 1,312 2,602 -
Gross settled:
Foreign exchange forward contracts
Gross inflow 547,040 - -
Gross outflow (546,189) - -
2,163 2,602 -
December 31, 2017
Gross settled:
2,938 - -
January 1, 2017
Gross settled:
1,433 - -
95
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December 31, 2018
Guidance notes
SFRS(I) 7.B11B 1. Derivatives

For derivatives, an entity should disclose a quantitative maturity analysis for derivative financial liabilities that shows
remaining contractual maturities if the contractual maturities are essential for an understanding of the timing of the cash
flows. For example, this would be the case for:
a. An interest rate swap with a remaining maturity of five years in a cash flow hedge of a variable rate financial asset
or liability.
b. All loan commitments.
SFRS(I) 7.B11A For embedded derivatives, an entity should not separate it from the hybrid financial instrument. For such an instrument,
the entity should disclose the contractual maturity of the entire instrument.
2. Alternative presentation by narration

The group’s derivative financial instruments comprise of interest rate swaps amounting to $3.9 million (December 31,
2017: $Nil, January 1, 2017: $Nil) with contracted net cash inflows due within 1 to 2 years, and foreign exchange forward
contracts gross inflow amounting to $547.0 million (December 31, 2017: $403.6 million, January 1, 2017: $206.8 million)
and gross outflow amounting $546.2 million (December 31, 2017: $400.6 million, January 1, 2017: $205.4 million) with
contracted gross cash flows due within 1 year.

Source

December 31, 2018
(vii) Fair value of financial assets and financial liabilities
Fair value of the group’s financial assets and financial liabilities that are measured at fair value on a recurring basis
Group
SFRS(I) 13.93(a), Some of the group’s financial assets and financial liabilities are measured at fair value as at each reporting date. The following table gives information about how the fair values of these financial
(b),(d),(g),(h)(i) assets and financial liabilities are determined (in particular, the valuation technique(s) and inputs used).
Financial assets/ Fair value as at ($’000) Fair value Valuation Significant Relationship of
financial liabilities December 31, 2018 December 31, 2017 January 1, 2017 hierarchy technique(s) and key unobservable unobservable inputs
Assets Liabilities Assets Liabilities Assets Liabilities input(s) input(s) to fair value
Financial assets at fair value through profit or loss (see Note 12)
1) Held-for-trading 11,988 - 11,125 - 4,254 - Level 1 Quoted bid prices in an n.a. n.a.
equity investments active market.
Derivative financial instruments (see Note 14)
2) Foreign currency 1,124 (273) 2,938 - 1,433 - Level 2 Discounted cash flow. n.a. n.a.
forward contracts Future cash flows are
estimated based on
forward exchange rates
(from observable
forward exchange rates
at the end of the
reporting period) and
contract forward rates,
discounted at a rate that
reflects the credit risk of
various counterparties.
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December 31, 2018
financial liabilities December 31, 2018 December 31, 2017 January 1, 2017 hierarchy technique(s) and key unobservable unobservable
input(s) input(s) inputs to fair value
Assets Liabilities Assets Liabilities Assets Liabilities
3) Interest rate swaps 3,914 - - - - - Level 2 Discounted cash flow. n.a. n.a.
Future cash flows are
estimated based on
forward interest rates
(from observable yield
curves at the end of the
reporting period) and
contract interest rates,
discounted at a rate that
reflects the credit risk of
various counterparties.
Financial assets at fair value through other comprehensive income (see Note 25)
4) Listed redeemable 8,303 - 8,221 - 8,158 - Level 1 Quoted bid prices in an n.a. n.a.
notes active market.
5) Listed equity shares 13,560 - 13,494 - 13,406 - Level 1 Quoted bid prices in an n.a. n.a.
active market.
6) Private equity 1,010 - 1,000 - 1,000 - Level 3 Income approach – in Long-term revenue A slight increase in
investments this approach, the growth rates, taking the long-term revenue
discounted cash flow into account growth rates used in
method was used to management’s isolation would result
capture the present experience and in a significant
value of the expected knowledge of market increase in the fair
future economic benefits conditions of the value (note 1).
to be derived from the specific industries
ownership of these ranging from 4.9 to
investees. 5.5% per annum
(2017: 4.8 to 5.4%
per annum).

Source

December 31, 2018
Long-term pre-tax A significant increase

operating margin in the long-term pre-
taking into account tax operating margin
management’s used in isolation would
experience and result in a significant
knowledge of increase in the fair
market conditions of value.
the specific
industries, ranging
from 5 to 12% per
annum (2017: 5 to
10% per annum).
Weighted average A slight increase in the
cost of capital WACC used in
(WACC), determined isolation would result
using a Capital Asset in a significant
Pricing Model, decrease in the fair
ranging from 11.9 to value (note 2)
12.5% per annum
(2017: 11.2 to
12.1% per annum).
Discount for lack of A significant increase
marketability, in the discount for lack
determined by of marketability used
reference to the in isolation would
share price of listed result in a significant
entities in similar decrease in the fair
industries, ranging value.
from 5 to 20% per
annum (2017: 4 to
19% per annum).
99
Source

December 31, 2018
7) Unquoted corporate 512 - 500 - 500 - Level 2 Discounted cash flow n.a. n.a.
bond
Financial assets at fair value through profit or loss (see Note 12)
8) Venture capital 1,018 - 1,000 - 975 - Level 3 Discounted cash flow Long-term revenue The higher the
investments (note 2) growth rates, taking revenue growth rate,
into account the higher the fair
management’s value.
experience and
knowledge of
market conditions of
the specific
industries ranging
from 5.5 to 6.1%
per annum (2017:
5.5 to 6.1% per
annum).
Long-term pre-tax The higher the pre-tax
operating margin operating margin, the
taking into account higher the fair value.
management’s
experience and
knowledge of
market conditions of
the specific
industries, of 4.3%
per annum (2017:
4.3% per annum).

Source

December 31, 2018
financial liabilities December 31, 2018 December 31, 2017 January 1, 2017 hierarchy technique(s) and unobservable unobservable inputs
Assets Liabilities Assets Liabilities Assets Liabilities key input(s) input(s) to fair value
Weighted average cost The higher the

of capital, determined weighted average cost
using a Capital Asset of capital, the lower
Pricing Model, ranging the fair value.
from 13.1 to 14.5%
per annum (2017:
12.3 to 13.1% per
annum).
Discount for lack of The higher the
marketability, discount, the lower
determined by the fair value.
reference to the share
price of listed entities
in similar industries,
ranging from 7 to 12%
per annum (2017: 7
to 12% per annum)
Others – contingent consideration in a business combination (see Note 53)
9) Contingent - 75 - - - - Level 3 Discounted cash flow Discount rate of 13% A slight increase in the
consideration (note 3) method was used to per annum determined discount rate used in
capture the present using a Capital Asset isolation would result
value of the expected Pricing Model. in a significant
future economic decrease in the fair
benefits that will flow value. (note 2)
out of the group
arising from the
contingent
consideration.
101
Source

December 31, 2018
financial liabilities December 31, 2018 December 31, 2017 January 1, 2017 hierarchy technique(s) and unobservable unobservable inputs
Assets Liabilities Assets Liabilities Assets Liabilities key input(s) input(s) to fair value
SFRS(I) 13.93(h)(ii) Probability-adjusted A slight increase in the

revenues and profits, probability adjusted
with a range from revenues and profits
$100,000 to $150,000 used in isolation would
and a range from result in a significant
$60,000 to $90,000 increase in the fair
respectively. value. (note 3)
note 1: If the long-term revenue growth rates used were 10% higher/lower while all the other variables were held constant, the carrying amount of the investment would decrease/increase
by $7,000 (2017: decrease/increase by $8,000).
note 2: A 5% increase/decrease in the WACC or discount rate used while holding all other variables constant would decrease/increase the carrying amount of the private equity investments
and the contingent consideration by $10,000 and $3,524 respectively (2017: $11,000 and $3,754 respectively).
note 3: A 5% increase/decrease in the probability-adjusted revenues and profits while holding all other variables constant would increase/decrease the carrying amount of the contingent
consideration by $5,210 (2017: $6,000).
Company
The company had no financial assets or liabilities carried at fair value in 2017 and 2018.
SFRS(I) 13.93(c) There were no significant transfers between Level 1 and Level 2 of the fair value hierarchy in the period.
Guidance notes – Transfers
For any significant transfers between Level 1 and Level 2, the reasons for the transfers need to be disclosed. Transfers into each level shall be disclosed and discussed separately from transfers
out of each level. For this purpose, significance shall be judged with respect to profit or loss, and total assets or total liabilities.

Source

December 31, 2018
Fair value of the group’s financial assets and financial liabilities that are not measured at fair value on a
recurring basis (but fair value disclosures are required)
SFRS(I) 7.25 Except as detailed in the following table, management considers that the carrying amounts of financial assets and financial
SFRS(I) 7.29(a) liabilities recorded at amortised cost in the financial statements approximate their fair values:
SFRS(I) 13.97
December 31, 2018 December 31, 2017 January 1, 2017

Carrying Carrying Carrying
Group amount Fair value amount Fair value amount Fair value
$’000 $’000 $’000 $’000 $’000 $’000
Financial Assets
Amortised cost:
Quoted debt securities 25,255 28,750 18,605 18,700 18,577 19,380
Unquoted debt securities 2,293 2,300 2,694 2,850 2,669 2,700
Finance lease receivables 76,497 79,000 64,163 68,000 52,963 61,000
Amortised cost:
Bank loans 358,845 363,000 435,394 435,000 353,000 350,000
Convertible loan notes 24,327 23,700 - - - -
SFRS(I) 13.97 Fair value hierarchy as at December 31, 2018

SFRS(I) 13.93(b) Group Level 1 Level 2 Level 3 Total
$’000 $’000 $’000 $’000
Financial Assets
Amortised cost:
Quoted debt securities 28,750 - - 28,750
Unquoted debt securities - - 2,300 2,300
Finance lease receivables - 79,000 - 82,000
Total 28,750 79,000 2,300 113,050
Amortised cost:
Bank loans - 363,000 - 363,000
Convertible loan notes - 23,700 - 23,700
Total - 386,700 - 386,700
103
Source

December 31, 2018
Fair value hierarchy as at December 31, 2017

Level 1 Level 2 Level 3 Total
$’000 $’000 $’000 $’000
Financial Assets
Amortised cost:
Total 18,700 68,000 2,850 89,550
Amortised cost:
Bank loans - 435,000 - 435,000
Convertible loan notes - - - -
Total - 435,000 - 435,000
Fair value hierarchy as at January 1, 2017

Level 1 Level 2 Level 3 Total
$’000 $’000 $’000 $’000
Financial Assets
Amortised cost:
Total 19,380 61,000 2,700 83,080
Amortised cost:
Bank loans - 350,000 - 350,000
Convertible loan notes - - - -
Total - 350,000 - 350,000
Guidance notes
The categorisation of fair value measurements into the different levels of the fair value hierarchy depends on the degree
to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value
measurement. The above categorisations are for illustrative purpose only.
SFRS(I) 13.97 The fair values of the financial assets and financial liabilities included in the Level 2 and Level 3 categories above have been
SFRS(I) 13.93(d) determined in accordance with generally accepted pricing models based on a discounted cash flow analysis, with the most
significant inputs being the discount rate that reflects the credit risk of counterparties.

Source

December 31, 2018
SFRS(I) 13.93(e) Reconciliation of Level 3 fair value measurements
Financial assets Financial assets

at FVTPL at FVTOCI
Group (Unquoted equities) (Unquoted equities) Total
$’000 $’000 $’000
2018
Opening balance 1,000 1,000 2,000
Total gains or losses
- In profit or loss # 12 - 12
- In other comprehensive income - 46 46
Purchases 6 - 6
Issues - - -
Disposals/settlements - (36) (36)
Transfers out of Level 3 - - -
Closing balance 1,018 1,010 2,028
SFRS(I) 13.93(f) Total gains or losses for the period included

in profit or loss for assets held at the end of the
reporting period 12 - 12
2017
Opening balance 975 1,000 1,975
Total gains or losses
- In profit or loss # 25 - 25
- In other comprehensive income - 47 47
Purchases - - -
Issues - - -
Disposals/settlements - (47) (47)
Transfers out of Level 3 - - -
Closing balance 1,000 1,000 2,000
SFRS(I) 13.93(f) Total gains or losses for the period included

in profit or loss for assets held at the end of the
reporting period 25 - 25
#
SFRS(I) 13.93(e)(i) Included as part of “other gains and losses” in profit or loss.
SFRS(I) 13.93(e)(ii) All gains and losses included in other comprehensive income relate to unlisted shares held at the end of the reporting period
and are reported as changes of “investments revaluation reserves”.
The table above only includes financial assets. The only financial liabilities subsequently measured at fair value on Level 3
fair value measurement represent contingent consideration related to acquisition of Huiji Electronic Systems (China) Limited
(see Note 53.1). No gain or loss for the year related to this contingent liability has been recognised in the consolidated
statement of profit or loss and other comprehensive income.
Guidance notes
SFRS(I) 13.93(e)(iv) For any transfers into and out of Level 3, the reasons for the transfers need to be disclosed. For significant transfers,
transfers into Level 3 shall be disclosed and discussed separately from transfers out of Level 3. For this purpose,
significance shall be judged with respect to profit or loss, and total assets or total liabilities.
105
Source

December 31, 2018
SFRS(I) 1-1.134 (d) Capital management policies and objectives

SFRS(I) 1-1.135
The group manages its capital to ensure that entities in the group will be able to continue as a going concern while maximising
the return to stakeholders through the optimisation of the debt and equity balance. The group’s overall strategy remains
unchanged from 2017.
The capital structure of the group consists of equity attributable to owners of the parent, comprising issued capital, reserves
and retained earnings.
The group is not subject to any externally imposed capital requirements.
Guidance notes
Where the group discloses information that enables users of its financial statements to evaluate the entity’s objectives,
policies and processes for managing capital, quantitative disclosure should be added. Below is an illustrative disclosure
applicable to entities requiring quantitative disclosure on capital management.
The group’s risk management committee reviews the capital structure on a semi-annual basis. As a part of this review,
the committee considers the cost of capital and the risks associated with each class of capital. The group has a target
gearing ratio of x% - y% determined as the proportion of net debt to equity. The gearing ratio at December 31, 2018 of
xx% (see below) was at the lower end of the target range, and has returned to a more typical level of yy% after the end
of the reporting period.
Gearing ratio
The gearing ratio at the end of the reporting period was as follows:
Group
December 31, December 31, January 1,
2018 2017 2017
$’000 $’000 $’000
Debt (i) xxx xxx xxx

Cash and bank balances (including cash and bank balances in a
disposal group held for sale) (xxx) (xxx) (xxx)
Net debt xxx xxx xxx
Equity (ii) xxx xxx xxx
Net debt to equity ratio xx% xx% xx%
(i) Debt is defined as long and short-term borrowings (excluding derivatives and financial guarantee contracts),
as described in Notes 27 and 33.
(ii) Equity includes all capital and reserves of the group that are managed as capital.

Source

December 31, 2018
Guidance notes – Disclosures on externally imposed capital requirements
When an entity is subject to externally imposed capital requirements, SFRS(I) 1-1.135 requires disclosures on:
 The nature of those requirements;
 How those requirements are incorporated into the management of capital;
 Any changes in those requirements from the previous period;
 Whether during the period, the entity complied with any externally imposed capital requirements to which it is subject
to; and
 When the entity has not complied with such externally imposed capital requirements, the consequences of such
non-compliance.
Only capital requirements imposed by external regulators are required to be disclosed under SFRS(I) 1-1.135(a)(ii).
Although SFRS(I) 1-1.135(a)(ii) do not provide any further guidance regarding what is meant by “externally imposed
capital requirements”, paragraphs BC92 to BC97 of the Basis for Conclusions to IAS 1(2007) effectively narrow the scope
of the requirements to "entity-specific requirement[s] imposed on a particular entity by its prudential supervisor or other
regulator". The entity bases these disclosures on the information provided internally to key management personnel.
SFRS(I) 1-1.135(a) Although disclosure of details regarding loan covenants is not required under SFRS(I) 1-1.135(a)(ii), entities should
consider whether such details should nevertheless be disclosed in line with the requirements in SFRS(I) 1-1.17(c) to
provide additional information to enable users of the financial statements to understand the impact of particular
transactions, other events and conditions on the entity’s financial position and financial performance.
SFRS(I) 1- An example of disclosures required by SFRS(I) 1-1.134 and 1-1.135 for an entity that is subject to externally imposed
1.135(a)(i),(ii)(ii) capital requirements is as follows:
SFRS(I) 1- The group manages its capital to ensure that it will able to continue as a going concern, to maximise the return to
1.135(b),(d) stakeholders through the optimisation of the debt and equity balance, and to ensure that all externally imposed capital
requirements are complied with.
The capital structure of the group consists of debt, which includes borrowings disclosed in Note 27, issued capital, reserves
and retained earnings. One of the subsidiaries of the group is required to set aside a minimum amount of X% of profits
annually. Such profits are accumulated in a separate reserve called “Statutory Reserves”. The Statutory Reserves may
only be distributed to shareholders upon liquidation of the subsidiary. The group is in compliance with externally imposed
capital requirements for the financial years ended December 31, 2018 and 2017.
SFRS(I) 1- The group’s risk management committee also reviews the capital structure on a semi-annual basis. As a part of this review,
1.135(a)(iii) the committee considers the cost of capital and the risks associated with each class of capital. The committee also ensures
that the group maintains gearing ratios within a set range to comply with the loan covenant imposed by a bank. Based on
recommendations of the committee, the group will balance its overall capital structure through the payment of dividends,
new share issues and share buy-backs as well as the issue of new debt or the redemption of existing debt.
SFRS(I) 1-1.135(c) The group’s overall strategy remains unchanged from 2017.
SFRS(I) 1-1.135(e) [Note - when the entity has not complied with such externally imposed capital requirements, it should disclose the
consequences of such non-compliance]
107
Source

December 31, 2018
5. Holding company and related company transactions
SFRS(I) 1-24.13 The company is a subsidiary of GAAP Holdings Ltd, incorporated in the Republic of Singapore, which is also the company’s
SFRS(I) 1-1.138(c) ultimate holding company. Related companies in these financial statements refer to members of the holding company’s
group of companies.
Guidance notes
SFRS(I) 1-24.13 Disclosure of name of ultimate controlling party

An entity shall disclose the name of its parent and, if different, the ultimate controlling party. The ultimate controlling party
may or may not be a corporate entity. The requirement to disclose the entity’s ultimate controlling party means that,
where such control is exercised by an individual, or by a group of individuals acting in concert, their identity must be
disclosed.
If neither the entity’s parent nor the ultimate controlling party produces consolidated financial statements available for
public use, the name of the next most senior parent that does so shall also be disclosed.
A possible disclosure may be as follows:
The company is a subsidiary of GAAP International Ltd, incorporated in the Country KLM. The ultimate controlling party is
Mr Ang Beng Choo whose interest in the company is held through his shareholdings in ABC Ltd and XYZ Ltd. The next
senior parent of the company that prepares financial statements for public use is GAAP Holdings Pte Ltd, incorporated in
Singapore.
SFRS(I) 1-24.18 Some of the company’s transactions and arrangements are between members of the group and the effect of these on the
basis determined between the parties is reflected in these financial statements. The intercompany balances are unsecured,
interest-free and repayable on demand unless otherwise stated.
Trading transactions
SFRS(I) 1-24.18 During the year, group entities entered into the following trading transactions with related companies that are not members
SFRS(I) 1-24.19 of the group:
Sale of goods Purchases of goods

2018 2017 2018 2017
$’000 $’000 $’000 $’000
GAAP Holdings Ltd 693 582 439 427
Subsidiaries of GAAP Holdings Ltd 1,289 981 897 883
Amounts owed by related companies Amounts owed to related companies

2018 2017 2017 2018 2017 2017
$’000 $’000 $’000 $’000 $’000 $’000
GAAP Holdings Ltd 209 198 194 231 139 111
Subsidiaries of GAAP
Holdings Ltd 398 323 303 149 78 69

Source

December 31, 2018
SFRS(I) 1-24.23 Sale of goods to related companies were made at the group’s usual list prices, less average discounts of 5%. Purchases
were made at market price discounted to reflect the quantity of goods purchased and the relationships between the
companies.
SFRS(I) 1- The amounts outstanding are unsecured and will be settled in cash. No guarantees have been given or received. No expense
24.18(b),(c),(d) has been recognised in the period for bad or doubtful debts in respect of the amounts owed by related companies.
SFRS(I) 1-24.18 In addition to the above, GAAP Holdings Ltd performed certain administrative services for the company, for which a
SFRS(I) 1-24.19 management fee of $0.18 million (2017: $0.16 million) was charged and paid, being an appropriate allocation of costs
incurred by relevant administrative departments of GAAP Holdings Ltd.
6. Other related party transactions
SFRS(I) 1-24.18 Some of the group’s transactions and arrangements are with related parties and the effect of these on the basis determined
SFRS(I) 1-24.19 between the parties is reflected in these financial statements. The balances are unsecured, interest-free and repayable on
demand unless otherwise stated.
During the year, group entities entered into the following trading transactions with related parties:
Sale of goods Purchases of goods

2018 2017 2018 2017
$’000 $’000 $’000 $’000
Associates 398 291 - -
Joint ventures of an investor who has

significant influence over the group - - 200 198
Amounts owed by related companies Amounts owed to related companies

2018 2017 2017 2018 2017 2017
$’000 $’000 $’000 $’000 $’000 $’000
Associates 85 152 173 - - -
Joint ventures of an investor

who has significant
influence over the group - - - - - -
The group also has a commitment to inject capital of up to $1 million (2017: $1 million) into its associate.
SFRS(I) 1-24.23 Sale of goods to related parties were made at the group’s usual list prices. Purchases were made at market price discounted
to reflect the quantity of goods purchased.
SFRS(I) 1-24.18(b) The amounts outstanding are unsecured and will be settled in cash. No guarantees have been given or received except that
the convertible loan notes (Note 33) issued during the year is secured by a personal guarantee of one of the directors.
No charge has been made for this guarantee.
SFRS(I) 1- No expense has been recognised in the period for bad or doubtful debts in respect of the amounts owed by related parties.
24.18(c),(d)
109
Source

December 31, 2018
Guidance notes
Guarantees given by directors

It is not uncommon for directors to give guarantees in respect of the borrowings of an entity, often without making a
charge to the entity. The provision of such a guarantee will be a related party transaction and should be clearly disclosed
here.
SFRS(I) 1-24.17 Compensation of directors and key management personnel
The remuneration of directors and other members of key management during the year was as follows:
Group 2018 2017

$’000 $’000
Short-term benefits 13,681 10,270

Post-employment benefits 1,602 1,391
Other long-term benefits 1,153 1,769
Share-based payments 949 863
17,385 14,293
The remuneration of directors and key management is determined by the remuneration committee having regard to the
performance of individuals and market trends.
Guidance notes – Key management personnel compensation
1. Key management personnel compensation paid by another related entity

The disclosure required is in respect of services provided to the entity. Therefore, where key management personnel are
paid a single salary in respect of services to more than one entity within the group, it will be necessary to allocate the
amounts paid between the services provided to the different group entities for the purposes of disclosure in the separate
financial statements of each individual group entity.
Note: SFRS(I) 1-24 does not mandate inter-company billing arrangements. Therefore, the allocation would be for
disclosure purposes.
2. Non-monetary benefits to key management personnel

For the purposes of SFRS(I) 1-24.18, it would be appropriate to disclose non-monetary benefits granted to key
management personnel. For example, where a member of key management personnel is given, as part of his employment
package, the benefit of staying in a residential property owned by the reporting entity, it would be appropriate to disclose
the depreciation of the property recognised in the period, because that is the amount the entity has recognised in profit
or loss in respect of the benefits.
SFRS(I) 1-24 does not require disclosure of fair value of the benefit provided. The entity should consider whether the
amount recognised reflects the nature of the benefit provided. If the fair value of the benefit could be determined reliably,
disclosure of additional information that is relevant to users, including a description of the terms and conditions of the
compensation, would be encouraged.

Source

December 31, 2018
LM 1207(12)-(15) 3. Directors’ and key executives’ remuneration

Where the company is listed, other than the disclosures required by SFRS(I) 1-24, the following are required disclosures
in the annual report (i.e. not necessarily in the financial statements):
 The issuer should make disclosure as recommended in the Code of Corporate Governance, or otherwise disclose and
explain any deviation from the recommendation.
[Note - The requirements of the Code of Corporate Governance are reproduced below]
 The remuneration must include all forms of remuneration from the issuer and any of its subsidiaries. In deciding
whether an item or benefit is to be included in the remuneration, regard shall be given to the taxability of that item.
 The value of an item or benefit must be disclosed as the original cost or value of the amount or benefit, and not the
taxable value to the recipient.
 If a person served in the capacity of a director or key executive for any part of a financial period, disclosure is required
of the person’s actual remuneration for the period that the person had served as a director or key executive.
The requirements of the Code of Corporate Governance (2012) on disclosure of remuneration are reproduced below:
Principle
CCG.9 9. Every company should provide clear disclosure of its remuneration policies, level and mix of remuneration, and the
procedure for setting remuneration, in the company’s Annual Report. It should provide disclosure in relation to its
remuneration policies to enable investors to understand the link between remuneration paid to directors and key
management personnel, and performance.
Guidelines
CCG.9.1 9.1. The company should report to the shareholders each year on the remuneration of directors, the CEO and at least the
top five key management personnel (who are not also directors or the CEO) of the company. This annual remuneration
report should form part of, or be annexed to the company’s annual directors’ statement. It should be the main means
through which the company reports to shareholders on remuneration matters.
The annual remuneration report should include the aggregate amount of any termination, retirement and post-employment
benefits that may be granted to directors, the CEO and the top five key management personnel (who are not directors or
the CEO).
CCG.9.2 9.2. The company should fully disclose the remuneration of each individual director and the CEO on a named basis.
For administrative convenience, the company may round off the disclosed figures to the nearest thousand dollars. There
should be a breakdown (in percentage or dollar terms) of each director’s and the CEO’s remuneration earned through
base/fixed salary, variable or performance-related income/bonuses, benefits in kind, stock options granted, share-based
incentives and awards, and other long-term incentives.
CCG.9.3 9.3 The company should name and disclose the remuneration of at least the top five key management personnel (who are
not directors or the CEO) in bands of S$250,000. Companies need only show the applicable bands. There should be a
breakdown (in percentage or dollar terms) of each key management personnel’s remuneration earned through base/fixed
salary, variable or performance-related income/bonuses, benefits in kind, stock options granted, share-based incentives
and awards, and other long-term incentives.
In addition, the company should disclose in aggregate the total remuneration paid to the top five key management
personnel (who are not directors or the CEO).
As best practice, companies are also encouraged to fully disclose the remuneration of the said top five key management
personnel.
111
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December 31, 2018
CCG.9.4 9.4. For transparency, the annual remuneration report should disclose the details of the remuneration of employees who
are immediate family members of a director or the CEO, and whose remuneration exceeds S$50,000 during the year. This
will be done on a named basis with clear indication of the employee’s relationship with the relevant director or the CEO.
Disclosure of remuneration should be in incremental bands of S$50,000. The company need only show the applicable
bands.
CCG.9.5 9.5. The annual remuneration report should also contain details of employee share schemes to enable their shareholders
to assess the benefits and potential cost to the companies. The important terms of the share schemes should be disclosed,
including the potential size of grants, methodology of valuing stock options, exercise price of options that were granted as
well as outstanding, whether the exercise price was at the market or otherwise on the date of grant, market price on the
date of exercise, the vesting schedule, and the justifications for the terms adopted.
CCG.9.6 9.6. For greater transparency, companies should disclose more information on the link between remuneration paid to the
executive directors and key management personnel, and performance. The annual remuneration report should set out a
description of performance conditions to which entitlement to short-term and long-term incentive schemes are subject,
an explanation on why such performance conditions were chosen, and a statement of whether such performance conditions
are met.
SFRS(I) 1-7.45 7. Cash and cash equivalents
Group Company
2018 2017 2017 2018 2017 2017
$’000 $’000 $’000 $’000 $’000 $’000
Cash at bank 5,177 604 1,804 2,022 603 238

Fixed deposits 5,500 500 500 - - -
Cash on hand 82 71 70 52 44 44
10,759 1,175 2,374 2,074 647 282
Less: Bank overdrafts (Note 27) (1,907) (1,909) (2,219) - - -
Add: Cash and cash equivalents
included in a disposal group
held-for-sale - - - - - -
Cash and cash equivalents
in the statement of cash flows 8,852 (734) 155 2,074 647 282
Guidance notes – Disclosures required by SFRS(I) 7
If information about contractual and effective interest rates, maturity dates, foreign currency denomination and fair values
have been presented in Note 4 “Financial Instruments, Financial Risks and Capital Management”, it is not necessary to
repeat the same information in this note.

Source

December 31, 2018
SFRS(I) 7.6,7.7 8. Trade and other receivables
Group Company
2018 2017 2017 2018 2017 2017
$’000 $’000 $’000 $’000 $’000 $’000
Trade receivables 93,027 113,486 81,129 - - -

Loss allowance (3,996) (4,430) (4,216) - - -
89,031 109,056 76,913 - - -
Deferred consideration from the

disposal of GAAP Playsystems
Limited (Note 52) 23,539 - - - - -
Other receivables due from

holding company (Note 5) 209 198 194 - - -

related companies (Note 5) 398 323 303 - - -

associates (Notes 5 and 23) 85 152 173 - - -

subsidiaries (Notes 5 and 22) - - - 89,371 55,895 53,696
113,262 109,729 77,583 89,371 55,895 53,696
8.1 Trade receivables

The average credit period on sale of goods is 60 days (2017: 60 days). No interest is charged on the trade receivables for
the first 60 days from the date of the invoice. Thereafter, interest is charged at 2% (2017: 2%) per annum on the outstanding
SFRS(I) 7.35G balance. Loss allowance for trade receivables has always been measured at an amount equal to lifetime expected credit
losses (ECL). The ECL on trade receivables are estimated using a provision matrix by reference to past default experience
of the debtor and an analysis of the debtor’s current financial position, adjusted for factors that are specific to the debtors,
general economic conditions of the industry in which the debtors operate and an assessment of both the current as well as
the forecast direction of conditions at the reporting date. The group has recognised a loss allowance of 100% against all
receivables over 120 days past due because historical experience has indicated that these receivables are generally not
recoverable.
SFRS(I) 7.35G(c) There has been no change in the estimation techniques or significant assumptions made during the current reporting period.
SFRS(I) 7.35F(e) A trade receivable is written off when there is information indicating that the debtor is in severe financial difficulty and there
SFRS(I) 7.35L is no realistic prospect of recovery, e.g. when the debtor has been placed under liquidation or has entered into bankruptcy
proceedings, or when the trade receivables are over two years past due, whichever occurs earlier. None of the trade
receivables that have been written off is subject to enforcement activities.
113
Source

December 31, 2018
SFRS(I) 7.35M The following table details the risk profile of trade receivables from contracts with customers based on the group’s provision
SFRS(I) 7.35N, matrix. As the group’s historical credit loss experience does not show significantly different loss patterns for different
SFRS(I) 9.B5.5.35 customer segments, the provision for loss allowance based on past due status is not further distinguished between the
group’s different customer base.
SFRS(I) 9.B5.5.35 Guidance notes – Segregation by customer base
Depending on the diversity of its customer base, the entity would use appropriate groupings if its historical credit loss
experience shows significantly different loss patterns for different customer segments. Examples of criteria that might be
used to group assets include geographical region, product type, customer rating, collateral or trade credit insurance and
type of customer (such as wholesale or retail).
Group
Trade receivables – days past due
31 – 60 61 – 90 91 – 120
December 31, 2018 Not past due < 30 days days days days > 120 days Total
$’000 $’000 $’000 $’000 $’000 $’000 $’000
Expected credit loss rate 1% 5% 10% 30% 50% 100%
Estimated total gross

carrying amount at
default 87,525 580 420 857 1,704 1,941 93,027
Lifetime ECL (875) (29) (42) (257) (852) (1,941) (3,996)

89,031
Group
31 – 60 61 – 90 91 – 120
December 31, 2017 Not past due < 30 days days days days > 120 days Total
$’000 $’000 $’000 $’000 $’000 $’000 $’000

carrying amount at
default 107,225 2,017 283 486 784 2,691 113,486
Lifetime ECL (1,072) (101) (28) (146) (392) (2,691) (4,430)

109,056
Group
31 – 60 61 – 90 91 – 120
January 1, 2017 Not past due < 30 days days days days > 120 days Total
$’000 $’000 $’000 $’000 $’000 $’000 $’000

carrying amount at
default 71,963 2,969 1,286 985 2,006 1,920 81,129
Lifetime ECL (720) (148) (129) (296) (1,003) (1,920) (4,216)

76,913

Source

December 31, 2018
SFRS(I) 9.5.5.2 The table below shows the movement in lifetime ECL that has been recognised for trade receivables in accordance with the
SFRS(I) 7.35H simplified approach set out in SFRS(I) 9:
Lifetime ECL
– not credit-impaired
Lifetime ECL
Collectively Individually – credit-
Group assessed assessed impaired Total
$’000 $’000 $’000 $’000
Balance as at January 1, 2017 - 1,380 2,836 4,216

Transfer to credit-impaired - (257) 257 -
Transfer from credit-impaired - - - -
Net re-measurement of loss allowance - 54 162 216
Amounts written off - - (20) (20)
Amounts recovered - - - -
Change in loss allowance due to new trade receivables
originated, net of those derecognised due to settlement - 115 (97) 18
Foreign exchange gains or losses - - - -
Changes in credit risk parameters - - - -
Balance as at December 31, 2017 - 1,292 3,138 4,430

Transfer to credit-impaired - (65) 65 -
Transfer from credit-impaired - - - -
Net re-measurement of loss allowance - 37 28 65
Amounts written off - - (460) (460)
Amounts recovered - - - -
Change in loss allowance due to new trade receivables
originated, net of those derecognised due to settlement - 48 (87) (39)
Foreign exchange gains or losses - - - -
Changes in credit risk parameters - - - -
Balance as at December 31, 2018 - 1,312 2,684 3,996
115
Source

December 31, 2018
SFRS(I) 7.35B(b) The following tables explain how significant changes in the gross carrying amount of the trade receivables contributed to
SFRS(I) 7.35I changes in the loss allowance:
Group
December 31, 2018
Increase (Decrease) in lifetime ECL
Not credit-impaired Credit-impaired
$’000 $’000
One customer’s account went from within 90 days past due

as at January 1, 2018 to over 120 days past due as at December 31, 2018 (61) 80
Customer declared bankruptcy - (460)
Settlement in full by customers that were over 120 days past due - (87)
Origination of new trade receivables net of those settled, as well as increase
in days past due up to 90 days 85 -
Group
December 31, 2017
Increase (Decrease) in lifetime ECL
Not credit-impaired Credit-impaired
$’000 $’000
Three customers’ accounts went from within 90 days past due

as at January 1, 2017 to over 120 days past due as at December 31, 2017 (250) 400
Settlement in full by customers that were over 90 days past due - (97)
Origination of new trade receivables net of those settled, as well as increase
in days past due up to 90 days 169 -
Guidance notes – Analysis of loss allowance
SFRS(I) 7.B8D SFRS(I) 7.35H requires an entity to explain the reasons for the changes in the loss allowance during the period. In addition
to the reconciliation from the opening balance to the closing balance of the loss allowance, it may be necessary to provide
a narrative explanation of the changes. This narrative explanation may include an analysis of the reasons for changes in
the loss allowance during the period, including:
a) the portfolio composition;

b) the volume of financial instruments purchased or originated; and
c) the severity of the expected credit losses.
8.2 Deferred consideration and other receivables

SFRS(I) 7.35G For purpose of impairment assessment, the deferred consideration and other receivables are considered to have low credit
SFRS(I) 7.35H risk as they are not due for payment at the end of the reporting period and there has been no significant increase in the risk
SFRS(I) 7.35M of default on the receivables since initial recognition. Accordingly, for the purpose of impairment assessment for these
receivables, the loss allowance is measured at an amount equal to 12-month expected credit losses (ECL).
In determining the ECL, management has taken into account the historical default experience and the financial position of
the counterparties, adjusted for factors that are specific to the debtors and general economic conditions of the industry in
which the debtors operate, in estimating the probability of default of each of these financial assets occurring within their
respective loss assessment time horizon, as well as the loss upon default in each case.
SFRS(I) 7.35G(c) There has been no change in the estimation techniques or significant assumptions made during the current reporting period
in assessing the loss allowance for deferred consideration and other receivables.

Source

December 31, 2018
The following table shows the movement in expected credit losses (ECL) that has been recognised for the deferred
consideration and other receivables.
12-month ECL
Financial assets
Group at amortised cost
$’000
Balance as at January 1, 2017 -

SFRS(I) 7.35B(b) Net increase in loss allowance arising from new financial instruments
SFRS(I) 7.35I recognised in current year, net of those derecognised upon settlement -
Changes in credit risk parameters -
Balance as at December 31, 2017 -

Guidance notes – Derecognition of trade receivables
Below is an illustrative disclosure applicable to entities that have factored their trade receivables with recourse.
Disclosures based on SFRS(I) 7 Financial Instruments: Disclosures
SFRS(I) 7 requires disclosure for transactions involving transfers of financial assets, where an asset is transferred but is
not derecognised or where an asset is derecognised but the entity continues to have a continuing involvement to the asset
after the sale.
SFRS(I) 7.42A The following is a possible disclosure for factored receivables i.e. where an asset is transferred but is not derecognised.
SFRS(I) 7.42B
SFRS(I) 7.42D During the period, the group transferred $xx (2017: $xx) of trade receivables to an unrelated entity. As part of the
transfer, the group provided the transferors a credit guarantee over the expected losses of those receivables. Accordingly,
the group continues to recognise the full carrying amount of the receivables and has recognised the cash received on the
transfer as a secured borrowing (see Note x). At the end of the reporting period, the carrying amount of the transferred
short-term receivables is $xx million. The carrying amount of the associated liability is $xx.
The transferee of the trade receivables has recourse only on those trade receivables. The fair values of the transferred
receivables and the associated liabilities as at December 31 are as follows:
Group
2018 2017 2017
$’000 $’000 $’000
Transferred trade receivables – at fair value xxx xxx xxx

Secured borrowings (Note X) – at fair value yyy yyy yyy
Net position zzz zzz zzz
117
Source

December 31, 2018
9. Contract assets
Group
2018 2017 2017
$’000 $’000 $’000
SFRS(I) 15.116(a) Construction contracts 12,747 12,165 10,716

Installation of software services 2,011 1,874 1,459
14,758 14,039 12,175
Loss allowance (148) (141) (122)
14,610 13,898 12,053
Analysed as:
Current 14,610 13,898 12,053
Non-current - - -
14,610 13,898 12,053
SFRS(I) 15.117 Amounts relating to construction contracts are balances due from customers under construction contracts that arise when
the group receives payments from customers in line with a series of performance – related milestones. The group will
previously have recognised a contract asset for any work performed. Any amount previously recognised as a contract asset
is reclassified to trade receivables at the point at which it is invoiced to the customer.
Payment for installation of software services is not due from the customer until the installation services are completed and
therefore a contract asset is recognised over the period in which the installation services are performed to represent the
group’s right to consideration for the services transferred to date.
SFRS(I) 15.118 There were no significant changes in the contract asset balances during the reporting period.
Guidance notes
SFRS(I) 15.118 SFRS(I) 15.118 contains a requirement to explain the significant changes in the contract asset and contract liability
balances during the reporting period. As there has been no significant movement on these balances in the period, no
further disclosure has been included.
SFRS(I) 7.34(a) Management always estimates the loss allowance on amounts due from customers at an amount equal to lifetime ECL,
SFRS(I) 7.35G taking into account the historical default experience and the future prospects of the construction industry. None of the
amounts due from customers at the end of the reporting period is past due.
in assessing the loss allowance for the contract assets.

Source

December 31, 2018
SFRS(I) 7.35M The following table details the risk profile of contract assets based on the group’s provision matrix. As the group’s historical
SFRS(I) 7.35N credit loss experience does not shows significantly different loss patterns for different customer segments, the provision for
SFRS(I) 9.B5.5.35 loss allowance based on past due status is not further distinguished between the group’s different customer base.
Group
2018 2017 2017
$’000 $’000 $’000
Expected credit loss rate 1% 1% 1%

Estimated total gross carrying amount at default
- amounts not past due 14,758 14,039 12,175
Lifetime ECL (148) (141) (122)
Net carrying amount 14,610 13,898 12,053
SFRS(I) 7.35H The following table shows the movement in lifetime ECL that has been recognised for contract assets in accordance with the
simplified approach set out in SFRS(I) 9.
Group
2018 2017
$’000 $’000
Balance at beginning of year 141 122

Net increase in loss allowance arising from new amounts recognised
in current year, net of those derecognised upon billing 7 19
Balance at end of year 148 141
10. Contract costs
Group
2018 2017 2017
$’000 $’000 $’000
SFRS(I) 15.128(a) Costs to obtain contracts 149 135 110
Costs to obtain contracts relate to incremental commission fees of 2% paid to intermediaries as a result of obtaining
residential property sales contracts.
SFRS(I) 15.127(a) These costs are amortised on a straight–line basis over the period of construction (in general, 2 years) as this reflects the
SFRS(I) 15.127(b) period over which the residential property is transferred to the customer. In 2018, amortisation amounting to $81,000
SFRS(I) 15.128(b) (2017: $55,000) was recognised as part of the cost of inventories recognised in profit or loss. There was no impairment loss
in relation to the costs capitalised.
Guidance notes – Practical expedient on incremental costs of obtaining a contract
SFRS(I) 15.94 As a practical expedient, incremental costs of obtaining a contract may be expensed off when incurred if the amortisation
period of the asset that the entity otherwise would have recognised is one year or less.
SFRS(I) 15.129 When the above practical expedient is applied, the entity shall disclose that fact.
119
Source

December 31, 2018
11. Finance lease receivables
Group
Present value of
Minimum lease payments minimum lease payments
2018 2017 2017 2018 2017 2017
$’000 $’000 $’000 $’000 $’000 $’000
SFRS(I) 1-17.47(a) Amounts receivable under finance leases:
Within one year 27,526 21,948 11,291 24,713 19,674 10,474

In the second to fifth year inclusive 60,722 51,913 51,071 51,784 44,489 42,489
88,248 73,861 62,362 76,497 64,163 52,963
SFRS(I) 1-17.47(b) Less: Unearned finance income (11,751) (9,698) (9,399) n.a. n.a. n.a.
Present value of minimum lease
payments receivable 76,497 64,163 52,963 76,497 64,163 52,963
SFRS(I) 1-17.47(d) Loss allowance for uncollectible lease
payments - - - - - -
Present value of minimum lease
payments receivable 76,497 64,163 52,963 76,497 64,163 52,963
Analysed as:
Group
2018 2017 2017
$’000 $’000 $’000
SFRS(I) 1-1.61 Current finance lease receivables 24,713 19,674 10,474

(recoverable within 12 months)
Non-current finance lease receivables 51,784 44,489 42,489

(recoverable after 12 months)
76,497 64,163 52,963
SFRS(I) 1-17.47(f) The group enters into finance leasing arrangements for certain of its electronic equipment. The average term of finance
SFRS(I) 7.7 leases entered into is 4 years.
SFRS(I) 1-17.47(c) Unguaranteed residual values of assets leased under finance leases at the end of the reporting period are estimated at $0.37
million (December 31, 2017: $0.25 million, January 1, 2017: $0.21 million).
SFRS(I) 7.7 The interest rate inherent in the leases is fixed at the contract date for all of the lease term. The average effective inter est
rate contracted is approximately 11.5% (2017: 12%) per annum.

Source

December 31, 2018
SFRS(I) 7.15 Finance lease receivable balances are secured over the equipment leased. The group is not permitted to sell or repledge the
collateral in the absence of default by the lessee. However, in the event of default, the group is entitled sell the asset, and
has rights to any proceeds from such a sale up to the total amount receivable from the lessee.
SFRS(I) 7.34(a) The loss allowance on finance lease receivables at the end of the reporting period is estimated at an amount equal to lifetime
expected credit losses (ECL). None of the finance lease receivables at the end of the reporting period is past due, and taking
into account the historical default experience and the future prospects of the industries in which the lessees operate, together
with the value of collaterals held over these finance lease receivables, the group considers that no finance lease receivables
is impaired.
in assessing the loss allowance for finance lease receivables.
SFRS(I) 7.6,7.7 12. Financial assets at fair value through profit or loss
Group
2018 2017 2017
$’000 $’000 $’000
SFRS(I) 7.8(a) Financial assets designated as at FVTPL:
[Describe] - - -
SFRS(I) 7.8(a) Financial assets mandatorily measured at FVTPL:

Held for trading derivatives that are not designated
in hedging relationships - - -
Held for trading non-derivative financial assets
- quoted equity securities (current) 11,988 11,125 4,254
- unquoted equity securities (non-current) 1,018 1,000 975
13,006 12,125 5,229
The investments above include investments in quoted equity securities that offer the group the opportunity for return through
dividend income and fair value gains. They have no fixed maturity or coupon rate. The fair values of these securities are
based on closing quoted market prices on the last market day of the financial year.
Unquoted equity investments comprise of venture capital investments in 2 entities (2017: 2) which represent less than 20%
shareholdings in each entities. These investments are measured at fair value through profit or loss in accordance with
SFRS(I) 9 Financial Instruments, as they represent an identified portfolio of investments which the group manages together
with an intention of profit taking when the opportunity arises.
Changes in the fair value of financial assets at fair value through profit or loss, amounting to $12,000 (2017: $25,000) have
been included in profit or loss for the year as part of “other gains and losses”.
121
Source

December 31, 2018
SFRS(I) 7.6,7.7 13. Other financial assets at amortised cost
Group
2018 2017 2017
$’000 $’000 $’000
SFRS(I) 7.8(f) Quoted debt securities (current) 25,255 18,605 18,577

SFRS(I) 7.8(f) Unquoted debt securities (non-current) 2,293 2,694 2,669
27,548 21,299 21,246
The average effective interest rate of the quoted debt securities is 1.13% (2017: 1.00%) per annum.
As at December 31, 2018, the quoted debt securities have nominal values amounting to $25 million (December 31, 2017:
$19 million, January 1, 2017: $19 million), with coupon rates ranging from 0.75% to 1.25% (December 31, 2017: 0.83%
to 1.18%, January 1, 2017: 0.70% to 1.13%) per annum and mature within 12 months.
As at December 31, 2018, the unquoted debt securities have nominal values amounting to $2.3 million (December 31, 2017:
$2.7 million, January 1, 2017: $2.7 million), with coupon rates ranging from 0.05% to 2.13% (December 31, 2017: 0.06%
to 2.20%, January 1, 2017: 0.10% to 2.30%) per annum and maturity dates ranging from September 7, 2020 to July 11,
2022.
SFRS(I) 7.35G For purpose of impairment assessment, the investments in debt securities are considered to have low credit risk as the
SFRS(I) 7.35H counterparties to these instruments have a minimum BBB- credit rating. Accordingly, for the purpose of impairment
SFRS(I) 7.35M assessment for these debts instruments, the loss allowance is measured at an amount equal to 12-month expected credit
losses (ECL).
In determining the ECL, management has taken into account the historical default experience, the financial position of the
counterparties, as well as the future prospects of the industries in which the issuers of these debt instruments obtained from
economic expert reports, financial analyst reports and considering various external sources of actual and forecast economic
information, as appropriate, in estimating the probability of default of each of these financial assets occurring within their
in assessing the loss allowance for these financial assets.

Source

December 31, 2018
SFRS(I) 9.5.5.2 Impairment gain or loss on financial instruments measured at amortised cost is recognised in profit or loss, with a
SFRS(I) 7.35H corresponding adjustment to their carrying amount through the loss allowance account. The following table shows the
movement in expected credit losses (ECL) that has been recognised for the respective financial assets.
12-month ECL
Debt instruments
Group at amortised cost
$’000


SFRS(I) 7.6,7.7 14. Derivative financial instruments
Group
December 31, 2018 December 31, 2017 January 1, 2017
Assets Liabilities Assets Liabilities Assets Liabilities
$’000 $’000 $’000 $’000 $’000 $’000
SFRS(I) 7.8(a) Forward foreign exchange contracts

- Designated in hedge accounting
relationships 1,124 (273) 2,938 - 1,433 -
- Not designated in hedge
accounting relationships - - - - - -
1,124 (273) 2,938 - 1,433 -
SFRS(I) 7.8(a) Interest rate swaps, designated in
hedge accounting relationships 3,914 - - - - -
5,038 (273) 2,938 - 1,433 -
Analysed as:
Current 2,436 (273) 2,938 - 1,433 -
Non-current 2,602 - - - - -
5,038 (273) 2,938 - 1,433 -
123
Source

December 31, 2018
SFRS(I) 7.33 Forward foreign exchange contracts

SFRS(I) 7.34
The group enters into forward foreign exchange contracts to manage the foreign currency risk associated with anticipated
sales and purchase transactions.
SFRS(I) 7.22B For the hedges of highly probable forecast sales and purchases, as the critical terms (i.e. the notional amount, life and
underlying) of the forward foreign exchange contracts and their corresponding hedged items are the same, the group
performs a qualitative assessment of effectiveness and it is expected that the value of the forward contracts and the value
of the corresponding hedged items will systematically change in opposite direction in response to movements in the
underlying exchange rates.
SFRS(I) 7.23D [Disclose the sources of hedge ineffectiveness in the hedging relationship by risk category, if any.]
SFRS(I) 7.23E
SFRS(I) 7.23B The following tables detail the forward foreign currency (FC) contracts outstanding at the end of the reporting period, as
SFRS(I) 7.24A(b) well as information regarding their related hedged items. Forward foreign currency contract assets and liabilities are included
in the “derivative financial instruments” line item in the consolidated statement of financial position:
Change in fair
Notional Notional value used for
Average value : value : calculating Fair value
SFRS(I) Hedging instruments exchange Foreign Local hedge assets
7.24A(a),(c),(d) - outstanding contracts rate currency currency ineffectiveness (liabilities)
FC’000 $’000 $’000 $’000
Cash flow hedges
Group
December 31, 2018
Sell US dollars
Less than 3 months 1.5 333,333 500,000 183 1,124
Buy Euro
Less than 3 months 2.1 22,400 47,040 (28) (273)
155 851
December 31, 2017
Sell US dollars
Less than 3 months 1.6 187,500 300,000 637 2,673
Buy Euro
Less than 3 months 2.1 49,320 103,573 49 265
686 2,938
January 1, 2017
Sell US dollars
Less than 3 months 1.4 125,000 200,000 n.a. 1,298
Buy Euro
Less than 3 months 2.0 3,200 6,800 n.a. 135
n.a. 1,433

Source

December 31, 2018
Balance in cash flow hedge

Balance in cash flow hedge reserve/foreign currency translation
reserve/foreign currency reserve arising from hedging
Change in value used
for calculating hedge translation reserve for relationships for which hedge
SFRS(I) 7.24B(b) Hedged items ineffectiveness continuing hedges accounting is no longer applied
December December January December December January
2018 2017 31, 2018 31, 2017 1, 2017 31, 2018 31, 2017 1, 2017
$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
Cash flow hedges
Group
Forecast sales (i) (183) (637) 1,344 1,798 1,237 - - -
Forecast purchases (ii) 28 (49) 24 78 53 - - -
(155) (686) 1,368 1,876 1,290 - - -
SFRS(I) 7.21A (i) The group has entered into contracts to supply electronic equipment to customers in the United States. The group has
entered into forward foreign exchange contracts (for terms not exceeding 3 months) to hedge the exchange rate risk arising
from these anticipated future transactions. It is anticipated that the sales will take place during the first 3 months of the
next financial year, at which time the amount deferred in equity will be reclassified to profit or loss.
(ii) The group has entered into contracts to purchase raw materials from suppliers in Europe. The group has entered into
forward foreign exchange contracts (for terms not exceeding 3 months) to hedge the exchange rate risk arising from these
anticipated future purchases. It is anticipated that the raw materials will be converted into inventory and sold within 12
months after purchase, at which time the amount deferred in equity will be reclassified to profit or loss as part of the cost
of inventories sold.
The following tables details the effectiveness of the hedging relationships and the amounts reclassified from hedging reserve
to profit or loss:
Current period hedging Amount of hedge Line item in profit or loss

gains (losses) recognised ineffectiveness recognised in which hedge
SFRS(I) 7.24C(b) in OCI in profit or loss ineffectiveness is included
2018 2017 2018 2017
$’000 $’000 $’000 $’000
Cash flow hedges
Group
Forecast sales 183 637 - - Other gains and losses
Forecast purchases (28) 49 - - Other gains and losses
155 686 - -
125
Source

December 31, 2018
Amount reclassified to Amount reclassified to

SFRS(I) 7.24C(b) profit or loss profit or loss
Line item in profit or Line item in profit or
Due to hedged future cash loss in which loss in which
flows being no longer reclassification Due to hedged item reclassification
expected to occur (i) adjustment is included affecting profit or loss adjustment is included
2018 2017 2018 2017
$’000 $’000 $’000 $’000
Cash flow hedges
Group
Forecast sales (85) - Other gains and losses (594) (78) Revenue
Forecast purchases - - Other gains and losses 16 (22) Cost of inventories
(85) - (578) (100)
SFRS(I) 7.23F (i) At the start of the third quarter of 2018, the group reduced its forecast on sales to United States due to increased local
competition and higher shipping costs. The group has previously hedged $270 million of future sales of which $20 million
are no longer expected to occur, and $250 million remains highly probable. Accordingly, the group has reclassified $85,000
of gains on foreign currency forward contracts relating to forecast transactions that are no longer expected to occur from
the cash flow hedging reserve to profit or loss.
Guidance notes – Information on forward foreign currency contracts
SFRS(I) 7.34(a) The table above provides an example of summary quantitative data about exposure to foreign exchange risks and the use
of forward foreign currency contracts at the end of the reporting period that an entity may provide internally to key
management personnel.

Source

December 31, 2018
SFRS(I) 7.22A Interest rate swap contracts

SFRS(I) 7.22B
SFRS(I) 7.33 Under interest rate swap contracts, the group agrees to exchange the difference between fixed and floating rate interest
SFRS(I) 7.34 amounts calculated on agreed notional principal amounts. Such contracts enable the group to mitigate the risk of changing
interest rates on the cash flow exposures on the issued variable rate debt. The fair value of interest rate swaps at the end
of the reporting period is determined by discounting the future cash flows using the curves at the end of the reporting period
and the credit risk inherent in the contract, and is disclosed below. The average interest rate is based on the outstanding
balances at the end of the reporting period.
SFRS(I) 7.22B As the critical terms of the interest rate swap contracts and their corresponding hedged items are the same, the group
performs a qualitative assessment of effectiveness and it is expected that the value of the interest rate swap contracts and
the value of the corresponding hedged items will systematically change in opposite direction in response to movements in
the underlying interest rates.
SFRS(I) 7.23D [Disclose the sources of hedge ineffectiveness in the hedging relationship by risk category, if any.]
SFRS(I) 7.23E
SFRS(I) 7.23B The following tables detail various information regarding interest rate swap contracts outstanding at the end of the reporting
SFRS(I) 7.24A(b) period and their related hedged items. Interest rate swap contract assets and liabilities are included in the “derivative
financial instruments” line item in the consolidated statement of financial position.
Change in fair
Average value used for
contracted Notional calculating Fair value
SFRS(I) Hedging instruments fixed interest principal hedge assets
7.24A(a),(c),(d) - outstanding receive floating pay fixed contracts rate value ineffectiveness (liabilities)
% FC’000 $’000 $’000
Cash flow hedges
Group
December 31, 2018
1 to 2 years 7 200,000 1,779 3,914
Balance in cash flow

Change in hedge reserve arising
value used for from hedging
calculating Balance in cash flow relationships for which
hedge hedge reserve for hedge accounting is no
SFRS(I) 7.24B(b) Hedged items ineffectiveness continuing hedges longer applied
2018 December 31, 2018 December 31, 2018
$’000 $’000 $’000
Cash flow hedges
Group
Variable rate borrowings (1,779) 1,584 -
127
Source

December 31, 2018
The following tables details the effectiveness of the hedging relationships and the amounts reclassified from hedging reserve
to profit or loss:
Amount reclassified to
profit or loss
Due to hedged Line item in
Current period Amount of Line item in future cash profit or loss in
hedging gains hedge profit or loss in flows being Due to which
(losses) ineffectiveness which hedge no longer hedged item reclassification
recognised in recognised in ineffectiveness expected affecting adjustment is
SFRS(I) 7.24C(b) OCI profit or loss is included to occur profit or loss included
2018 2018 2018 2018
$’000 $’000 $’000 $’000
Cash flow hedges
Group
Other gains and

Variable rate borrowings 1,779 - losses - (195) Finance costs
Guidance notes – Information on interest rate swaps
SFRS(I) 7.34(a) The tables above provide an example of summary quantitative data about exposure to interest rate risks and the use of
interest rate swaps at the end of the reporting period that an entity may provide internally to key management personnel.
The interest rate swaps settle on a quarterly basis. The floating rate on the interest rate swaps is the Singapore interbank
rate. The group will settle the difference between the fixed and floating interest rate on a net basis.
SFRS(I) 7.21A All interest rate swap contracts exchanging floating rate interest amounts for fixed rate interest amounts are designated as
SFRS(I) 7.22A cash flow hedges in order to reduce the group’s cash flow exposure resulting from variable interest rates on borrowings.
SFRS(I) 7.22B The interest rate swaps and the interest payments on the loan occur simultaneously and the amount recognised in other
comprehensive income is reclassified from equity to profit or loss over the period that the floating rate interest payments on
debt affect profit or loss.

Source

December 31, 2018
SFRS(I) 1-2.36(b) 15. Inventories
Group
2018 2017 2017
$’000 $’000 $’000
SFRS(I) 1-2.37 Raw materials 84,457 80,504 58,165

SFRS(I) 1-2.37 Work-in-progress 2,578 1,893 1,470
SFRS(I) 1-2.37 Finished goods 29,927 25,523 18,357
116,962 107,920 77,992
Classified as part of a disposal group held for sale (Note 17) 202 - -
117,164 107,920 77,992
SFRS(I) 1- The cost of inventories recognised as an expense includes $2.34 million (2017: $1.86 million,) in respect of write-downs of
2.36(e),(f),(g) inventory to net realisable value, and has been reduced by $0.5 million (2017: $0.4 million) in respect of the reversal of
such write-downs. Previous write-downs have been reversed as a result of increased sales price in certain markets.
SFRS(I) 1-1.61 Inventories of $1.29 million (December 31, 2017: $0.86 million, January 1, 2017: $1.07 million) are expected to be
recovered after more than twelve months.
SFRS(I) 1-2.36(h) Inventories with carrying amounts of $26 million (December 31, 2017: $19.3 million, January 1, 2017: $16.1 million) have
been pledged as security for certain of the group’s bank overdrafts.
Guidance notes – Reversal of write-downs
SFRS(I) 1- The reversal of any write-down of inventories shall be disclosed in the financial statements along with the circumstances
2.36(f),(g) or events that led to the reversal of the write-down.
For example:
Due to an increase in the demand for certain goods and a result of changes in consumer preferences, the group reversed
$xxx, being part of an inventory write-down made in 2017, to the current year profit or loss. The reversal is included in
“Cost of Sales”.
Other reasons could also include having inventories sold above carrying amounts.
16. Right to returned goods asset
Group
2018 2017 2017
$’000 $’000 $’000
SFRS(I) 15.B21(c) Right to returned goods asset 626 672 604
SFRS(I) 15.126(d) The right to returned goods asset represents the group’s right to recover products from customers where customers exercise
their right of return under the group’s 30-day returns policy. The group uses its accumulated historical experience to estimate
the number of returns on a portfolio level using the expected value method.
129
Source

December 31, 2018
SFRS(I) 5.41 17. Assets classified as held for sale
On December 20, 2018, management resolved to dispose of one of the group’s production lines for electronic goods.
Negotiations with several interested parties have subsequently taken place. The assets and liabilities attributable to the
production line, which are expected to be sold within twelve months, have been classified as a disposal group held for sale
and are presented separately in the statement of financial position. The operations are included in the group’s electronic
equipment activities for segment reporting purposes (Note 43).
The proceeds of disposal are expected to exceed the net carrying amount of the relevant assets and liabilities and,
accordingly, no impairment loss has been recognised on the classification of these operations as held for sale.
SFRS(I) 5.38 The major classes of assets and liabilities comprising the disposal group classified as held for sale are as follows:
Group
2018
$’000
Goodwill 22
Property, plant and equipment 1,698
SFRS(I) 1-2.36(c) Inventories 202
Total assets classified as held for sale 1,922
Trade and other payables, and total liabilities directly associated with assets classified as held for sale (247)
Net assets of disposal group 1,675
Guidance notes – Assets classified as held for sale
SFRS(I) 5.41(d) 3. For an entity presenting segment information in accordance with SFRS(I) 8 Operating Segments, the entity
discloses the reportable segment in which the non-current asset (or disposal group) is presented in accordance
with SFRS(I) 8.
4. SFRS(I) 5 Non-current Assets Held for Sale and Discontinued Operations specifies the disclosures required in
respect of assets (or disposal groups) classified as held for sale or discontinued operations. Disclosures in other
SFRS(I)s do not apply to such assets (or disposal groups) unless:
 Those SFRS(I)s specifically require disclosures in respect of non-current assets (or disposal groups) classified
as held for sale or discontinued operations (e.g. SFRS(I) 1-16 Property, Plant and Equipment); or
 The disclosures relate to the measurement of assets or liabilities within a disposal group that are outside the
scope of SFRS(I) 5’s measurement requirements and the information is not disclosed elsewhere in the financial
statements (e.g. measurement of financial instruments in accordance with SFRS(I) 9 Financial Instruments).

Source

December 31, 2018
18. Property, plant and equipment
Leasehold land Properties

and buildings at under Plant and
revalued construction equipment
amount at cost at cost Total
$’000 $’000 $’000 $’000
Group
Cost or valuation:
SFRS(I) 1- At January 1, 2017 448,096 74,002 77,322 599,420
16.73(d),(e)
SFRS(I) 1-16.74(b) Additions - 3,698 30,107 33,805
Exchange differences (1,569) - (142) (1,711)
Disposals - - (5,000) (5,000)
Revaluation decrease (12,745) - - (12,745)
At December 31, 2017 433,782 77,700 102,287 613,769
Additions - 7,260 65,785 73,045
Acquired on acquisition of a subsidiary - - 8,907 8,907
Exchange differences 2,103 - 972 3,075
Disposal of a subsidiary - - (22,402) (22,402)
Disposals - - (6,413) (6,413)
Reclassified as held for sale - - (3,400) (3,400)
Revaluation increase 40,060 - - 40,060
At December 31, 2018 475,945 84,960 145,736 706,641
SFRS(I) 1-16.73(a) Comprising:

January 1, 2017
At cost - 74,002 77,322 151,324
SFRS(I) 13.93(e) At valuation 448,096 - - 448,096
SFRS(I) 1-16.77 448,096 74,002 77,322 599,420
December 31, 2017

At cost - 77,700 102,287 179,987
SFRS(I) 1-16.77 433,782 77,700 102,287 613,769
December 31, 2018

At cost - 84,960 145,736 230,696
SFRS(I) 1-16.77 475,945 84,960 145,736 706,641
Guidance notes – Revaluation model for property, plant and equipment
SFRS(I) 1- SFRS(I) 1-16 clarifies that when an item of property, plant and equipment is revalued, any accumulated depreciation at
16.35(a),(b) the date of the revaluation is treated in one of the following ways:
(a) the gross carrying amount is adjusted in a manner that is consistent with the revaluation of the carrying amount of
the asset. For example, the gross carrying amount may be restated by reference to observable market data or it
may be restated proportionately to the change in the carrying amount. The accumulated depreciation at the date of
the revaluation is adjusted to equal the difference between the gross carrying amount and the carrying amount of
the asset after taking into account accumulated impairment losses; or
(b) the accumulated depreciation is eliminated against the gross carrying amount of the asset.
131
Source

December 31, 2018
Leasehold land Properties

and buildings at under Plant and
revalued construction equipment
amount at cost at cost Total
$’000 $’000 $’000 $’000
Group
Accumulated depreciation
At January 1, 2017 - - 39,681 39,681
Depreciation 10,694 - 8,348 19,042
Exchange differences (794) - (102) (896)
Eliminated on disposals - - (1,000) (1,000)
Eliminated on revaluation (9,900) - - (9,900)
At December 31, 2017 - - 46,927 46,927
Depreciation 13,172 - 16,345 29,517
Exchange differences 51 - 927 978
Eliminated on disposal of a subsidiary - - (12,277) (12,277)
Eliminated on disposals - - (5,614) (5,614)
Assets reclassified as held for sale - - (1,702) (1,702)
Eliminated on revaluation (13,223) - - (13,223)
At December 31, 2018 - - 44,606 44,606
Impairment:
SFRS(I) 1-36.126(a) Impairment loss recognised in the year ended
December 31, 2018 and balance at December 31, 2018 - - 4,130 4,130
Carrying amount:
At December 31, 2018 475,945 84,960 97,000 657,905
At December 31, 2017 433,782 77,700 55,360 566,842
At January 1, 2017 448,096 74,002 37,641 559,739
SFRS(I) 1- During the year, the group carried out a review of the recoverable amount of its manufacturing plant and equipment, having
36.130(a)-(g) regard to its ongoing programme of modernisation and the introduction of new product lines. These assets are used in the
SFRS(I) 1-36.126(a) group’s electronic goods segment(3). The review led to the recognition of an impairment loss of $4.13 million (2017: $Nil)
that has been recognised in profit or loss, and included in the line item [depreciation and amortisation expense/cost of
sales]. The group estimated the fair value less costs of disposal of the manufacturing plant and equipment, which is based
on the recent market prices of assets with similar age and obsolescence. The fair value less costs of disposal is less than the
value in use and hence the recoverable amount of the relevant assets has been determined on the basis of their value in
use. The discount rate used in measuring value in use was 9% per annum. No impairment assessment was performed in
2017 as there was no indication of impairment.
SFRS(I) 1-17.31(a) The carrying amount of the group’s plant and equipment includes an amount of $2.55 million (December 31, 2017: $1.40
million, January 1, 2017: $0.96 million) secured in respect of assets held under finance leases.
SFRS(I) 1-16.74(a) The group has pledged land and buildings having a carrying amount of approximately $370 million (December 31, 2017:
$320 million, January 1, 2017: $330 million) to secure banking facilities granted to the group.

Source

December 31, 2018
Fair value measurement of the group’s leasehold land and buildings

SFRS(I) 1- The group’s land and buildings are stated at their revalued amounts, being the fair value at the date of revaluation, less any
16.77(a),(b) subsequent accumulated depreciation and subsequent accumulated impairment losses. The fair value measurements of the
group’s leasehold land and buildings as at December 31, 2018, December 31, 2017 and January 1, 2017 were performed
by Messrs. Low, Poh & Koh, independent valuers not connected with the group, who have appropriate qualifications and
recent experience in the fair value measurement of the properties in the relevant locations.
SFRS(I) 13.91(a) The fair value of the leasehold land was determined [based on the market comparable approach that reflects recent
SFRS(I) 13.93(d) transaction prices for similar properties/other methods (describe)]. The fair value of the buildings was determined using
SFRS(I) 13.93(h)(i) [the cost approach that reflects the cost to a market participant to construct assets of comparable utility and age, adjusted
for obsolescence/other methods (describe)]. [The significant inputs include the estimated construction costs and other
ancillary expenditure of approximately $xx million (2017: approximately $xx million), and a depreciation factor applied to
the estimated construction cost of approximately xx% (2017: approximately xx%). An increase in the depreciation factor
would result in a decrease in the fair value of the buildings, and an increase in the estimated construction costs would result
in an increase in the fair value of the buildings, and vice versa.] There has been no change to the valuation technique during
the year.
SFRS(I) Details of the group’s leasehold land and buildings and information about the fair value hierarchy as at December 31, 2018,
13.93(a),(b) December 31, 2017 and January 1, 2017 (date of transition to SFRS(I)s) are as follows:
Fair value
as at
December 31,
Level 1 Level 2 Level 3 2018
$’000 $’000 $’000 $’000
Leasehold land - - 421,100 421,100

Buildings - - 54,845 54,845
- - 475,945 475,945
Fair value
as at
December 31,
$’000 $’000 $’000 $’000
Leasehold land - - 359,200 359,200

Buildings - - 74,582 74,582
- - 433,782 433,782
Fair value
as at
January 1,
$’000 $’000 $’000 $’000
Leasehold land - - 373,251 373,251

Buildings - - 74,845 74,845
- - 448,096 448,096
133
Source

December 31, 2018
Guidance notes
measurement. The above categorisations are for illustrative purposes only. It is worth noting the following points:
 The classification into the 3-level hierarchy is not an accounting policy choice. For land and buildings, given their
unique nature, it is extremely rare that the fair value measurement would be identified as a Level 1 measurement.
Whether the fair value measurement in its entirety should be classified into Level 2 or Level 3 would depend on the
extent to which the inputs and assumptions used in arriving at the fair value are observable. In many situations where
valuation techniques (with significant unobservable inputs) are used in estimating the fair value of the real estate
properties, the fair value measurement as a whole would be classified as Level 3.
 The level within which the fair value measurement is categorised bears no relation to the quality of the valuation.
For example, the fact that a real estate property is classified as a Level 3 fair value measurement does not mean that
the property valuation is not reliable – it merely indicates that significant unobservable inputs have been used and
significant judgement was required in arriving at the fair value.
SFRS(I) 13.93(c) There were no transfers between Level 1 and Level 2 during the year.
SFRS(I) 13.95 [Where there had been a transfer between different levels of the fair value hierarchy, the group should disclose the reasons
for the transfer and the group’s policy for determining when transfers between levels are deemed to have occurred
(for example, at the beginning or end of the reporting period or at the date of the event that caused the transfer).]
Guidance notes – Property, plant and equipment
LM 1207(11)(a) 1. Details of properties

Where the company is listed, in respect of land and buildings, a breakdown in value in terms of freehold and leasehold
shall be disclosed in the annual report. Where properties have been revalued, the portion of the aggregate value of land
and buildings that is based on valuation as well as the valuation date shall be stated. Where the aggregate value for all
properties for development or sale held by the group represents more than 15% of the value of the consolidated net
tangible assets, or contributes more than 15% of the consolidated pre-tax operating profit, the issuer must disclose the
following information as a note to the financial statements:
(i) A brief description and location of the property;
(ii) If in the course of construction, the stage of completion as at the date of the financial statements and the expected
completion date;
(iii) The existing use;
(iv) The site and gross floor area of the property; and
(v) The percentage interest in the property.
Provided that if, in the opinion of the directors, the number of such properties is such that compliance with this requirement
would result in particulars of excessive length being given, compliance is required only for properties, which in the opinion
of the directors, are material.
SFRS(I) 1- 2. Impairment disclosures

36.130(c)(ii) An entity that reports segment information in accordance with SFRS(I) 8 Operating Segments discloses the reportable
segment that the asset belongs to.

Source

December 31, 2018
19. Investment property
Group
2018 2017
$’000 $’000
SFRS(I) 1-40.76 At fair value
Balance at beginning of year 11,409 11,299
Additions through subsequent expenditure - -
Acquisitions through business combinations - -
Other acquisitions - -
Disposals - -
Property reclassified as held for sale - -
Gain from fair value adjustments included in profit or loss 500 -
Net foreign currency exchange differences 91 110
Transfers - -
Other changes - -
Balance at end of year 12,000 11,409
SFRS(I) 13.93(e) These include the following related to investment properties classified under Level 3 of the fair value hierarchy:
Gain from fair value adjustments included in profit or loss 91 -
All of the group’s investment properties are held under freehold interests.
SFRS(I) 1-40.75(a) Fair value measurement of the group’s investment properties

SFRS(I) 1-40.75(e) The fair values of the group’s investment property at December 31, 2018, December 31, 2017 and January 1, 2017 (date
SFRS(I) 13.91(a) of transition to SFRS(I)s) have been determined on the basis of valuations carried out at the respective year end dates by
SFRS(I) 13.93(d) independent valuers having an appropriate recognised professional qualification and recent experience in the location and
category of the properties being valued, and not related to the group. The fair value was determined [based on the market
comparable approach that reflects recent transaction prices for similar properties/capitalisation of net income method, where
the market rentals of all lettable units of the properties are assessed by reference to the rentals achieved in the lettable
units as well as other lettings of similar properties in the neighbourhood. The capitalisation rate adopted is made by reference
to the yield rates observed by the valuers for similar properties in the locality and adjusted based on the valuers’ knowledge
of the factors specific to the respective properties/other methods (describe)]. In estimating the fair value of the properties,
the highest and best use of the properties is their current use. There has been no change to the valuation technique during
the year.
135
Source

December 31, 2018
SFRS(I) Details of the group’s investment properties and information about the fair value hierarchy as at December 31, 2018,
13.93(a),(b) December 31, 2017 and January 1, 2017 are as follows:
Fair value
as at
December 31,
$’000 $’000 $’000 $’000
Investment property
Units located in A Land - - 7,000 7,000
Units located in B Land - 5,000 - 5,000
Fair value
as at
December 31,
$’000 $’000 $’000 $’000
Investment property
Fair value
as at
January 1,
$’000 $’000 $’000 $’000
Investment property
For unit located in B Land, the fair value was derived using the market comparable approach based on recent market prices
without any significant adjustments being made to the market observable data.
For investment properties categorised into Level 3 of the fair value hierarchy, the following information is relevant:
SFRS(I) 13.93(d) Valuation Significant unobservable input(s) Sensitivity

SFRS(I) 13.93(h)(i) techniques
Unit located in A Land Income Capitalisation rate, taking into account A slight increase in the capitalisation
Capitalisation the capitalisation of rental income rate used would result in a significant
Approach potential, nature of the property, and decrease in fair value, and vice versa.
prevailing market condition, of x% - x%
(2017: x% - x%).
Monthly market rent, taking into account A significant increase in the market
the differences in location, and individual rent used would result in a significant
factors, such as frontage and size, increase in fair value, and vice versa.
between the comparables and the
property, at an average of $[x] (2017:
$[x]) per square metre (“sqm”) per
month.

Source

December 31, 2018
Guidance notes
In considering the level of disaggregation of the properties for the purposes of the above disclosure, management of the
entity should take into account the nature and characteristics of the properties in order to provide meaningful information
to the users of the financial statements regarding the fair value measurement information of the different types of
properties. The breakdown above is for illustrative purposes only.
SFRS(I) 13.93(c) There were no transfers between Levels 1 and 2 and into or out of Level 3 during the year.
SFRS(I) 13.93(e)(iv)
SFRS(I) 13.95 [Where there had been a transfer between different levels of the fair value hierarchy, the group should disclose the reasons
for the transfer and the group’s policy for determining when transfers between levels are deemed to have occurred
(for example, at the beginning or end of the reporting period or at the date of the event that caused the transfer).]
Guidance notes
Fair value hierarchy

measurement. The above categorisations are for illustrative purposes only.
Fair value disclosures for investment properties measured using the cost model
SFRS(I) 13.97 For investment properties that are measured using the cost model, SFRS(I) 1-40.79(e) requires the fair value of the
properties to be disclosed in the notes to the financial statements. In that case, the fair value of the properties for disclosure
purpose should be measured in accordance with SFRS(I) 13. In addition, SFRS(I) 13.97 requires the following disclosures:
 At which level fair value measurement is categorised (i.e. Level 1, 2 or 3);
 Where the fair value measurement is categorised within Level 2 or Level 3, a description of the valuation technique(s)
and the inputs used in the fair value measurement; and
 The highest and best use of the properties (if different from their current use) and the reasons why the properties are
being used in a manner that is different from their highest and best use.
SFRS(I) 1- The property rental income from the group’s investment properties all of which are leased out under operating leases,
40.75(f)(i),(ii) amounted to $0.6 million (2017: $0.7 million). Direct operating expenses (including repairs and maintenance) arising from
the rental-generating investment properties amounted to $0.4 million (2017: $0.5 million).
LM 1207(11)(b) Guidance notes – Details of investment properties
Where the company is listed, in respect of land and buildings, a breakdown in value in terms of freehold and leasehold
shall be disclosed in the annual report. Where properties have been revalued, the portion of the aggregate value of land
and buildings that is based on valuation as well as the valuation date shall be stated. Where the aggregate value for all
properties for investment purposes held by the group represents more than 15% of the value of the consolidated net
tangible assets, or contributes more than 15% of the consolidated pre-tax operating profit, the issuer must disclose the
following information as a note to the financial statements:
i. A brief description and location of the property;
ii. The existing use; and
iii. Whether the property is leasehold or freehold. If leasehold, state the unexpired term of the lease.
Provided that if, in the opinion of the directors, the number of such properties is such that compliance with this requirement
would result in particulars of excessive length being given, compliance is required only for properties, which in the opinion
of the directors, are material.
137
Source

December 31, 2018
20. Goodwill
Group
$’000
Cost:
At January 1, 2017 2,754
Exchange differences (216)
At December 31, 2017 2,538

Arising on acquisition of a subsidiary (Note 53) 3,658
Eliminated on disposal of a subsidiary (Note 52) (1,673)
Reclassified as held for sale (22)
At December 31, 2018 4,501
Impairment:
Impairment loss recognised in the year ended
December 31, 2018 and balance at December 31, 2018 (463)
Carrying amount:
At December 31, 2018 4,038
At December 31, 2017 2,538
At January 1, 2017 2,754
SFRS(I) 1-36.134(a) Goodwill acquired in a business combination is allocated, at acquisition, to the cash generating units (CGUs) that are expected
to benefit from that business combination. Before recognition of impairment losses, the carrying amount of goodwill had
been allocated as follows:
Group
2018 2017 2017
$’000 $’000 $’000
Electronic equipment:
Huiji Electronic Systems (China) Limited (single CGU) 3,658 - -
Construction (comprised several CGUs):

Residential property construction activities 843 843 843
Electronic toys operation:

GAAP Playsystems Limited (single CGU) - 1,695 1,911
4,501 2,538 2,754

Source

December 31, 2018
The group tests goodwill annually for impairment or more frequently if there are indications that goodwill might be impaired.
SFRS(I) 1- The recoverable amounts of the CGUs are determined from value in use calculations. The key assumptions for the value in
36.134(b)-(d) use calculations are those regarding the discount rates, growth rates and expected changes to selling prices and direct costs
during the period. Management estimates discount rates using pre-tax rates that reflect current market assessments of the
time value of money and the risks specific to the CGUs. The growth rates are based on industry growth forecasts. Changes
in selling prices and direct costs are based on past practices and expectations of future changes in the market.
The group prepares cash flow forecasts derived from the most recent financial budgets approved by management for the
next five years and extrapolates cash flows for the following five years based on an estimated growth rate of 3%. This rate
does not exceed the average long-term growth rate for the relevant markets.
SFRS(I) 1-36.130(g) The rate used to discount the forecast cash flows from Huiji Electronic Systems (China) Limited is 8.9%, and from the group’s
residential property construction activities is 11.2%.
SFRS(I) 1-36.135(e) As at December 31, 2018, any reasonably possible change to the key assumptions applied not likely to cause the recoverable
amounts to be below the carrying amounts of the CGU.
SFRS(I) 1- As at December 31, 2018, before impairment testing, goodwill of $0.84 million was allocated to the residential property
36.130(a),(b), construction CGU within the construction business segment (1). Due to increased competition in the market, the group has
(d),(e) revised its cash flow forecasts for this CGU. The residential property CGU has therefore been reduced to its recoverable
amount of $0.38 million through recognition of an impairment loss against goodwill of $0.46 million.
Guidance notes
SFRS(I) 1- Impairment testing disclosures

36.130(d)(ii) An entity that reports segment information in accordance with SFRS(I) 8 Operating Segments discloses the amount of the
impairment loss recognised or reversed by reportable segment accordance with SFRS(I) 8.
139
Source

December 31, 2018
SFRS(I) 1- 21. Other intangible assets

38.118(c),(e)
Development Patents and
Group costs trademarks Total
$’000 $’000 $’000
Cost:
At January 1, 2017 - 13,000 13,000
Additions - 18,617 18,617
At December 31, 2017 - 31,617 31,617
Additions 3,600 3,835 7,435
Acquired on acquisition of a subsidiary - 870 870
At December 31, 2018 3,600 36,322 39,922
Amortisation:
At January 1, 2017 - 9,477 9,477
Amortisation for the year - 846 846
At December 31, 2017 - 10,323 10,323
Amortisation for the year 360 2,254 2,614
At December 31, 2018 360 12,577 12,937
Carrying amount:
At December 31, 2018 3,240 23,745 26,985
At December 31, 2017 - 21,294 21,294
At January 1, 2017 - 3,523 3,523
SFRS(I) 1-38.118(a) The intangible assets included above have finite useful lives, over which the assets are amortised. The amortisation period
for development costs incurred on the group’s e-business development is three years. Patents and trademarks are amortised
over their estimated useful lives, which is on average 10 years.
SFRS(I) 1-38.118(d) The amortisation expense has been included in the line item “depreciation and amortisation expense” in profit or loss.
SFRS(I) 1-38.122(b) The group’s patents protect the design and specification of its electronic goods produced in Singapore, the United States
and Europe. The carrying amount of patents at December 31, 2018 is $20.2 million (December 31, 2017: $18.4 million,
January 1, 2017: $Nil). The average remaining amortisation period for these patents is 7 years.

Source

December 31, 2018
SFRS(I) 1-27.16(b) 22. Subsidiaries
Company
2018 2017 2017
$’000 $’000 $’000
Unquoted equity shares, at cost 111,650 110,000 110,000
Details of the group’s significant subsidiaries at December 31, 2018 are as follows:
Country of
incorporation
Name of subsidiary (or residence) Proportion of ownership interest Proportion of voting power held Principal activity
December December January December December January
31, 2018 31, 2017 1, 2017 31, 2018 31, 2017 1, 2017
% % % % % %
GAAP Construction Pte Ltd * Singapore 100 100 100 100 100 100 Property investment
and construction
GAAP Manufacturing Hong Kong 45 45 45 45 45 45 Manufacture of

Limited ** leisure goods
GAAP Leisure Pte Ltd * Singapore 45 45 45 45 45 45 Sale of leisure goods
GAAP Electronics Sdn Bhd Malaysia 100 100 100 100 100 100 Sale and manufacture
** of electronic equipment
GAAP Ventures Pte Ltd * Singapore 100 100 100 100 100 100 Venture capital
investments
GAAP Electronics (China) People’s 70 65 65 70 65 65 Sale and manufacture

Limited ** Republic of of electronic equipment
China
GAAP Pacific Inc ** U.S.A 90 90 90 100 100 100 Installation of

computer software
Huiji Electronics Systems People’s 80 - - 80 - - Sale and manufacture

(China) Limited # ** Republic of of electronic equipment
China
GAAP Playsystems Hong Kong - 100 100 - 100 100 Sale and manufacture
Limited ## ** of electronic toys
LM 717 * Audited by Deloitte & Touche LLP, Singapore.

LM 718 ** Audited by overseas practices of Deloitte Touche Tohmatsu Limited.
# During the financial year, Huiji Electronic Systems (China) Limited was acquired pursuant to a conditional cash offer
(Note 53).
## GAAP Playsystems Limited was disposed during the financial year (Note 52).
141
Source

December 31, 2018
LM 717 Guidance notes – Other auditors

LM 718
Where significant subsidiaries are audited by another firm of auditors, the names of the other auditors are to be disclosed
accordingly. A subsidiary is considered significant if its net tangible assets represent 20% or more of the issuer’s
consolidated net tangible assets, or its pre-tax profits account for 20% or more of the issuer’s consolidated pre-tax profits.
SFRS(I) 12.18 The following schedule shows the effects of changes in the group’s ownership interest in a subsidiary that did not result in
change of control, on the equity attributable to owners of the parent:
2018 2017
$’000 $’000
Amount paid on changes in ownership interest in subsidiary 350 -

Non-controlling interest acquired (100) -
Difference recognised in equity reserves (Note 38) 250 -
SFRS(I) 12.10(a)(i) Guidance notes – Other auditors
Disclosure on composition of the group below serves as a guide. Management should exercise judgement on the extent of
disclosure that is required that clearly explains to users of financial statements the nature and extent of its interests in
those other entities.
SFRS(I) 12.4 22.1 Details of composition of the group
SFRS(I) 12.B4(a) Information about the composition of the group at the end of the financial year is as follows:
SFRS(I) 12.B5-B6
Place of incorporation
Principal activity and operation Number of wholly-owned subsidiaries
2018 2017 2017
Sale and manufacture of electronic equipment Malaysia 1 1 1

Property investment and construction Singapore 1 1 1
Venture capital investment Singapore 1 1 1
Sale and manufacture of electronic toys Hong Kong - 1 1
3 4 4
Place of incorporation Number of non-wholly owned

Principal activity and operation subsidiaries
2018 2017 2017
Manufacture of leisure goods Hong Kong 1 1 1

Sale of leisure goods Singapore 1 1 1
Sale and manufacture of electronic equipment People’s Republic of China 2 1 1
Installation of computer software U.S.A. 1 1 1
5 4 4

Source

December 31, 2018
Details of non-wholly owned subsidiaries that have material non-controlling interests to the group are disclosed in
Note 22.2 below.
22.2 Details of non-wholly owned subsidiaries that have material non-controlling interests
SFRS(I) 12.10(a)(ii) The table below shows details of non-wholly owned subsidiaries of the group that have material non-controlling interests:
SFRS(I) 12.12(a)-(f) Guidance notes – Other auditors
SFRS(I) 12.B11 1. For illustrative purposes, the following non-wholly owned subsidiaries are assumed to have non-controlling interests
that are material to the group.
2. The amounts disclosed below do not reflect the elimination of intragroup transactions.
Name of Place of Proportion of ownership interests Profit (loss) Accumulated non-controlling interests
subsidiary incorporation and voting rights held by non- allocated to
and principal controlling interests non-controlling
place of interests
business
2018 2017 2017 2018 2017 2018 2017 2017
% % % $’000 $’000 $’000 $’000 $’000
GAAP Hong Kong 55 55 55 401 464 1,794 1,393 929

Manufacturing
Limited (i)
GAAP Leisure Singapore 55 55 55 61 (258) 1,084 1,023 1,281

Pte Ltd (ii)
GAAP Electronics People’s Republic 30 35 35 34 (128) 137 103 231

(China) Limited of China
Huiji Electronics People’s Republic 20 - - 98 - 1,278 - -

Systems (China) of China
Limited
Individually immaterial subsidiaries with non-controlling interests 15 19 292 57 38
Total 609 97 4,585 2,576 2,479
SFRS(I) 12.9(b) (i) GAAP Manufacturing Limited is listed on the Hong Kong Stock Exchange. Although the group has only 45% ownership
in GAAP Manufacturing Limited, management concluded that the group has a sufficiently dominant voting interest to
direct the relevant activities of GAAP Manufacturing Limited on the basis of the group’s absolute size of shareholding
and the relative size and dispersion of the shareholdings owned by other shareholders. The 55% ownership interests
in GAAP Manufacturing Limited are owned by thousands of shareholders that are unrelated to the group, none
individually holding more than 2%.
(ii) The group owns 45% equity shares of GAAP Leisure Pte Ltd. However, based on the contractual arrangements between
the group and other investors, the group has the power to appoint and remove the majority of the board of directors
of GAAP Leisure Pte Ltd. The relevant activities of GAAP Leisure Pte Ltd are determined by the board of directors of
GAAP Leisure Pte Ltd based on simple majority votes. Therefore, management concluded that the group has control
over GAAP Leisure Pte Ltd and GAAP Leisure Pte Ltd is consolidated in these financial statements.
143
Source

December 31, 2018
SFRS(I) 12.12(g) Summarised financial information in respect of each of the group’s subsidiaries that has material non-controlling interests is set out below. The summarised financial information below represents
SFRS(I) 12.B10-B11 amounts before intragroup eliminations.
Huiji Electronics Systems

GAAP Manufacturing Limited GAAP Leisure Pte Ltd GAAP Electronics (China) Limited (China) Limited
December 31, December 31, January 1, December 31, December 31, January 1, December 31, December 31, January 1, December 31, December 31, January 1,
2018 2017 2017 2018 2017 2017 2018 2017 2017 2018 2017 2017
$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
Current assets 1,576 1,070 1,234 1,580 1,678 2,103 591 464 1,985 16,579 - -
Non-current assets 2,568 2,317 1,609 1,298 987 1,237 212 334 1,429 13,409 - -
Current liabilities (276) (266) (286) (398) (356) (446) (224) (345) (1,476) (20,998) - -
Non-current liabilities (606) (588) (868) (509) (449) (564) (122) (224) (1,168) (2,598) - -
Equity attributable to
owners of the
company 1,468 1,140 760 887 837 1,049 320 126 539 5,114 - -
Non-controlling
interests 1,794 1,393 929 1,084 1,023 1,281 137 103 231 1,278 - -

Source

December 31, 2018
Huiji Electronics
GAAP Manufacturing GAAP Leisure GAAP Electronics Systems (China)
Limited Pte Ltd (China) Limited Limited
2018 2017 2018 2017 2018 2017 2018 2017
$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
Revenue 2,918 2,285 3,109 3,408 2,453 2,678 6,908 -

Expenses (2,189) (1,441) (2,998) (3,877) (2,340) (2,962) (6,418) -
Profit (Loss) for the year 729 844 111 (469) 113 (284) 490 -
Profit (Loss) attributable to owners of the company 328 380 50 (211) 79 (156) 392 -
Profit (Loss) attributable to non-controlling interests 401 464 61 (258) 34 (128) 98 -
Profit (Loss) for the year 729 844 111 (469) 113 (284) 490 -
Other comprehensive income attributable to owners of the company - - - - - - - -

Other comprehensive income attributable to non-controlling interests - - - - - - - -
Other comprehensive income for the year - - - - - - - -
Total comprehensive income attributable to owners of the company 328 380 50 (211) 79 (156) 392 -
Total comprehensive income attributable to non-controlling interests 401 464 61 (258) 34 (128) 98 -
Total comprehensive income for the year 729 844 111 (469) 113 (284) 490 -
Dividends paid to non-controlling interests - - - - - - - -

Net cash inflow (outflow) from operating activities 321 359 130 119 98 78 2,089 -
Net cash inflow (outflow) from investing activities (251) (39) 24 (21) 34 5 (509) -
Net cash inflow (outflow) from financing activities 20 (120) (120) (73) (90) (12) (448) -
Net cash inflow (outflow) 90 200 34 25 42 71 1,132 -
145
Source

December 31, 2018
SFRS(I) 12.13 22.3 Significant restrictions
[When there are significant restrictions on the company’s or its subsidiaries’ ability to access or use the assets and settle
the liabilities of the group, the group should disclose the nature and extent of significant restrictions. Please see SFRS(I)
12.13 for details.]
SFRS(I) 12.14-17 22.4 Financial support
[When the group gives financial support to a consolidated structured entity, the nature and risks (including the type and
amount of support provided) should be disclosed in the financial statements. Please see SFRS(I) 12.14 – 17 for details.]
SFRS(I) 1-27.16(b) 23. Associates
Group
2018 2017 2017
$’000 $’000 $’000
Cost of investment in associates 32,920 1,120 1,120

Share of post-acquisition profit, net dividend received 12,140 11,154 9,879
45,060 12,274 10,999
23.1 Details of material associates
SFRS(I) 12.21(a) Details of the group’s significant associates at December 31, 2018 are as follows:
Place of
incorporation
Name of and Proportion of Proportion of
associate operation ownership interest voting power held Principal activity
2018 2017 2017 2018 2017 2017
% % % % % %
LM 717,718 Apag Limited ** Elbonia 45 40 40 45 40 40 Construction
PAAG Pte Ltd * Singapore 17 17 17 17 17 17 Manufacture of

electronic
equipment
* Audited by Deloitte & Touche LLP, Singapore.

** Audited by overseas practices of Deloitte Touche Tohmatsu Limited.
Guidance notes – Other auditors
LM 717,718 Where significant associates are audited by another firm of auditors, the names of the other auditors are to be disclosed
accordingly. An associate is considered significant if its net tangible assets represent 20% or more of the issuer’s
consolidated net tangible assets, or its pre-tax profits account for 20% or more of the issuer’s consolidated pre-tax profits.

Source

December 31, 2018
SFRS(I) 12.21(b)(i) All of the above associates are accounted for using the equity method in these consolidated financial statements.
SFRS(I) 12.22(b) (i) The financial year end date of Apag Limited is October 31. This was the reporting date established when that company
SFRS(I) 12.21(b)(iii) was incorporated, and a change of reporting date is not permitted in Elbonia. For the purposes of applying the equity
SFRS(I) 13.97 method of accounting, the financial statements of Apag Limited for the year ended October 31, 2018 have been used,
and appropriate adjustments have been made for the effects of significant transactions between that date and
December 31, 2018. As at December 31, 2018, the fair value of the group’s interest in Apag Limited, which is listed
on the stock exchange of Elbonia, was $8 million (December 31, 2017: $7.8 million, January 1, 2017: $6.8 million)
based on the quoted market price available on the stock exchange of Elbonia, which is a Level 1 input in terms of
SFRS(I) 13.
SFRS(I) 12.9(e) (ii) The group has significant influence over PAAG Pte Ltd by virtue of its contractual right to appoint two out of seven
SFRS(I) 12.21(a)(iv) directors to the board of that company.
SFRS(I) 12.21(b)(ii) Summarised financial information in respect of each of the group’s material associates is set out below. The summarised
SFRS(I) 12.B12 financial information below represents amounts shown in the associate’s financial statements prepared in accordance with
SFRS(I) 12.B14(a) SFRS(I)s [adjusted by the group for equity accounting purposes].

Apag Limited 2018 2017 2017
$’000 $’000 $’000
Current assets 130,954 123,606 110,980

Non-current assets 120,993 91,457 81,824
Current liabilities (140,090) (167,772) (151,670)
Non-current liabilities (18,190) (25,538) (23,336)
2018 2017
$’000 $’000
Revenue 3,387 4,758

Profit or loss from continuing operations 1,016 1,332
Post-tax profit (loss) from discontinued operations - -
Profit for the year 1,016 1,332
Other comprehensive income for the year - -
Total comprehensive income for the year 1,016 1,332
Dividends received from the associate during the year - -
SFRS(I) 12.B14(b) Reconciliation of the above summarised financial information to the carrying amount of the interest in Apag Limited
recognised in these consolidated financial statements:

2018 2017 2017
$’000 $’000 $’000
Net assets of the associate 93,667 21,753 17,798

Proportion of the group’s ownership interest in Apag Limited 45% 40% 40%
Goodwill - - -
Other adjustments (please specify) - - -
Carrying amount of the group’s interest in Apag Limited 42,150 8,701 7,119
147
Source

December 31, 2018

SFRS(I) 12.21(b)(ii) PAAG Pte Ltd 2018 2017 2017
SFRS(I) 12.B12 $’000 $’000 $’000
SFRS(I) 12.B14(a)
Current assets 19,151 18,442 3,339
(6,206) (8,290) (1,571)
2018 2017
$’000 $’000
Revenue 5,790 5,890

Profit or loss from continuing operations 2,271 2,262
Profit for the year 2,271 2,262
Total comprehensive income for the year 2,271 2,262
Dividends received from the associate during the year - -
SFRS(I) 12.B14(b) Reconciliation of the above summarised financial information to the carrying amount of the interest in PAAG Pte Ltd

2018 2017 2017
$’000 $’000 $’000
Net assets of the associate 15,424 13,153 14,006

Proportion of the group’s ownership interest in PAAG Pte Ltd 17% 17% 17%
Goodwill - - -
Carrying amount of the group’s interest in PAAG Pte Ltd 2,622 2,236 2,381
SFRS(I) 12.21(c)(ii) Aggregate information of associates that are not December 31, December 31, January 1,
SFRS(I) 12.B16 individually material 2018 2017 2017
$’000 $’000 $’000
The group’s share of profit from continuing operations 143 358 n.a.
The group’s share of post-tax profit from discontinued operations - - n.a.
The group’s share of other comprehensive income - - n.a.
The group’s share of total comprehensive income 143 358 n.a.
Aggregate carrying amount of the group’s interests in these associates 288 1,337 1,499
SFRS(I) 12.22(c) Unrecognised share of losses of an associate 2018 2017

$’000 $’000
The unrecognised share of losses of an associate for the year - -

2018 2017 2017
$’000 $’000 $’000
Cumulative share of losses of an associate - - -

Source

December 31, 2018
SFRS(I) 1-28.22 23.2 Change in the group’s ownership interest in an associate
Guidance notes
When there is a change in group’s ownership interest in associate, the group should disclose details as set out below.
Please see SFRS(I) 1-28.22 for details.
[In the prior year, the group held a 40% interest in E Plus Limited and accounted for the investment as an associate.
In December 2018, the group disposed of a 30% interest in E Plus Limited to a third party for proceeds of $x million
(received in January 2019). The group has accounted for the remaining 10% interest as an investment measured at
FVTOCI whose fair value at the date of disposal was $x, which was determined using a discounted cash flow model (please
describe key factors and assumptions used in determining the fair value). This transaction has resulted in the recognition
of a gain in profit or loss, calculated as follows:
2018
$’000
Proceeds of disposal xx
Adds: Fair value of investment retained (10%) xx
Less: Carrying amount of investment on the date of loss of significant influence xx
Gain recognised xx
The gain recognised in the current year comprises a realised profit of $x (being the proceeds of $x million less $x carrying
amount of the interest disposed of) and an unrealised profit of $x (being the fair value less the carrying amount of the
10% interest retained). A current tax expense of $x arose on the gain realised in the current year, and a deferred tax
expense of $x has been recognised in respect of the portion of the profit recognised that is not taxable until the remaining
interest is disposed of.]
SFRS(I) 12.22(a) 23.3 Significant restriction
[When there are significant restrictions on the ability of associates to transfer funds to the group in the form of cash
dividends, or to repay loans or advances made by the group, the group should disclose the nature and extent of significant
restrictions in the financial statements. Please see SFRS(I) 12.22(a) for details.]
149
Source

December 31, 2018
SFRS(I) 1-27.16(b) 24. Joint venture

Group
2018 2017 2017
$’000 $’000 $’000
Cost of investment in joint venture 1,800 1,800 1,800

Share of post-acquisition profit, net dividend received 2,124 1,840 1,600
Foreign exchange difference 22 22 20
3,946 3,662 3,420
24.1 Details of material joint venture
Guidance notes
Similar to the disclosures applicable to investments in associates, SFRS(I) 12 requires the following information to be
disclosed for each of the group’s material joint ventures. In this set of illustrative financial statements, the group only has
one joint venture, JV Electronics Limited, and for illustrative purposes, JV Electronics Limited is assumed to be material to
the group.
SFRS(I) 12.21(a) Details of the group’s material joint venture at the end of the reporting period is as follows:
Place of incorporation
and principal place of Proportion of ownership interest and voting
Name of joint venture Principal activity business rights held by the group
2018 2017 2017
% % %
JV Electronics Limited Manufacture of electronic People’s Republic 33 33 33

equipment of China
LM 717,718 Guidance notes – Other auditors
Where significant joint ventures are audited by another firm of auditors, the names of the other auditors are to be disclosed
accordingly. Guidelines similar to those applicable for associates (see above) may be used to determine if a joint venture
is significant.
SFRS(I) 12.21(b)(i) The above joint venture is accounted for using the equity method in these consolidated financial statements and is audited
by an overseas practice of Deloitte Touche Tohmatsu Limited.

Source

December 31, 2018
SFRS(I) 12.B14 Summarised financial information in respect of the group’s material joint venture is set out below. The summarised financial
information below represents amounts shown in the joint venture’s financial statements prepared in accordance with
SFRS(I)s [adjusted by the group for equity accounting purposes].

SFRS(I) 12.21(b)(ii) JV Electronics Limited 2018 2017 2017
SFRS(I) 12.B12 $’000 $’000 $’000
SFRS(I) 12.B14(a)
Current assets 5,454 7,073 6,787
Non-current liabilities (13,881) (13,033) (13,636)
SFRS(I) 12.B13 The above amounts of assets and liabilities include the following:
Cash and cash equivalents 231 553 687

Current financial liabilities
(excluding trade and other payables and provisions) - - -
Non-current financial liabilities
(excluding trade and other payables and provisions) (12,881) (12,373) (12,801)
2018 2017
$’000 $’000
Revenue 6,436 6,076

Profit (Loss) from continuing operations 861 733
Profit for the year 861 733
Total comprehensive income for the year 861 733
Dividends received from the joint venture during the year - -
SFRS(I) 12.B13 The above profit (loss) for the year include the following:
Depreciation and amortisation 200 180

Interest income - -
Interest expense 56 48
Income tax expense (income) - -
SFRS(I) 12.B14(b) Reconciliation of the above summarised financial information to the carrying amount of the interest in the joint venture

2018 2017 2017
$’000 $’000 $’000
Net assets of the joint venture 11,958 11,097 10,364

Proportion of the group’s ownership interest in the joint venture 33% 33% 33%
Goodwill - - -
Carrying amount of the group’s interest in the joint venture 3,946 3,662 3,420
151
Source

December 31, 2018
SFRS(I) 12.21(c)(i) Aggregate information of joint ventures that are not December 31, December 31, January 1,
SFRS(I) 12.B16 individually material 2018 2017 2017
$’000 $’000 $’000
The group’s share of profit (loss) from continuing operations - - n.a.

The group’s share of post-tax profit (loss) from discontinued operations - - n.a.
The group’s share of other comprehensive income - - n.a.
The group’s share of total comprehensive income - - n.a.
Aggregate carrying amount of the group’s interests in these joint ventures - - -
SFRS(I) 12.22(c) Unrecognised share of losses of a joint venture 2018 2017

$’000 $’000
The unrecognised share of loss of a joint venture for the year - -

2018 2017 2017
$’000 $’000 $’000
Cumulative share of loss of a joint venture - - -
Guidance notes
For the purposes of illustration, the disclosures above include line items with Nil values. Delete line items if not applicable.
24.2 Significant restriction
SFRS(I) 12.22(a) [When there are significant restrictions on the ability of joint ventures to transfer funds to the group in the form of cash
dividends, or to repay loans or advances made by the group, the group should disclose the nature and extent of significant
restrictions in the financial statements. Please see SFRS(I) 12.22(a) for details.]
24.3 Joint operation
SFRS(I) 12.21(a) The group has a material joint operation, Project GAAP. The group has a 25% share in the ownership of a property located
in Singapore. The property upon completion will be held for leasing purposes. The group is entitled to a proportionate share
of the rental income received and bears a proportionate share of the joint operation’s expenses. The joint operation is
audited by Deloitte & Touche LLP, Singapore.

Source

December 31, 2018
SFRS(I) 7.6,7.7 25. Financial assets at fair value through other comprehensive income
Group
2018 2017 2017
$’000 $’000 $’000
SFRS(I) 7.8(h)
SFRS(I)
7.11A(a),(c) Investments in equity instruments designated as at FVTOCI:
Quoted equity shares 13,560 13,494 13,406
Unquoted equity shares 1,010 1,000 1,000
SFRS(I) 7.8(h) Investments in debt instruments classified as at FVTOCI:
Quoted debt securities 8,303 8,221 8,158
Unquoted debt securities 512 500 500
Total financial assets at FVTOCI 23,385 23,215 23,064
Investments in equity instruments

The investments in quoted equity securities offer the group the opportunity for return through dividend income and fair
value gains. They have no fixed maturity or coupon rate. The fair values of these securities are based on the quoted closing
market prices on the last market day of the financial year.
SFRS(I) 12.9(d) The investments in quoted equity securities also include 20% equity interest in RCorp Limited, a company involved in the
commercial property development. Management does not consider that the group is able to exercise significant influence
over RCorp Limited as the other 80% of the ordinary share capital is held by one shareholder, who also manages the day -
to-day operations of that company.
The investments in unquoted equity investments represent investments in companies that are engaged in research and
development activities and/or the commercial application of this knowledge. The recoverability of these investments is
uncertain and dependent on the outcome of these activities, which cannot presently be determined.
SFRS(I) 7.11A(b) These investments in equity instruments are not held for trading. Instead, they are held for medium to long-term strategic
SFRS(I) 7.42J(a) purposes. Accordingly, management has elected to designate these investments in equity instruments as at FVTOCI as they
believe that recognising short-term fluctuations in these investments’ fair value in profit or loss would not be consistent with
the group’s strategy of holding these investments for long-term purposes and realising their performance potential in the
long run.
SFRS(I) 7.11B No investment in equity investments measured at FVTOCI has been disposed of during the current reporting period.
Guidance notes – Impairment assessment on investments in equity instruments by SFRS(I) 9
SFRS(I) 9 states that investments in equity instruments are not subject to impairment assessment, because these
investments are now only measured at FVTPL or FVTOCI without recycling of fair value changes to profit or loss.
153
Source

December 31, 2018
Investments in debt instruments

The investments in debt instruments include listed redeemable notes that carry interest at 7% per annum, and are
redeemable at par value in 2020.
SFRS(I) 9.4.1.2A These redeemable notes are held by the group within a business model whose objective is both to collect their contractual
SFRS(I) 7.42J(a) cash flows which are solely payments of principal and interest on the principal amount outstanding and to sell these financial
assets. Hence, the redeemable notes are classified as at FVTOCI.
SFRS(I) 7.35G For purpose of impairment assessment, the notes are considered to have low credit risk as they are held with a single
SFRS(I) 7.35H counterparty with an AA credit rating. The group holds no collateral over this balance. Accordingly, for the purpose of
SFRS(I) 7.35M impairment assessment for these debts instruments, the loss allowance is measured at an amount equal to 12-month
expected credit losses (ECL).
In determining the ECL, management has taken into account the historical default experience, the financial position of the
counterparties, as well as the future prospects of the industries in which the issuers of these debt instruments obtained from
economic expert reports, financial analyst reports and considering various external sources of actual and forecast economic
information, as appropriate, in estimating the probability of default of each of these financial assets occurring within their
in assessing the loss allowance for these financial assets.
SFRS(I) 9.5.5.2 The loss allowance for debt instruments measured at FVTOCI is recognised in other comprehensive income. The following
SFRS(I) 7.35H table shows the movement in expected credit losses (ECL) that has been recognised for the respective financial assets.
12-month ECL
Debt instruments
Group at FVTOCI
$’000



Source

December 31, 2018
26. Deferred tax
SFRS(I) 1- The following are the major deferred tax liabilities and assets recognised by the group and the company, and the movements
12.81(g)(i),(ii) thereon, during the current and prior reporting periods:
SFRS(I) 1-12.81(a) Accelerated Deferred Convertible Retirement

SFRS(I) 1-12.81(ab) tax development Revaluation bond-equity benefit
SFRS(I) 1-1.90 Group depreciation costs of building component obligations Others Tax losses Total
$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
At January 1, 2017 3,304 - 1,046 - (2,561) - (295) 1,494

Charge to other
for the year - - (320) - - - - (320)
Charge (Credit) to
profit or loss for the
year (Note 47) 1,952 - (10) - - (291) (344) 1,307
At December 31, 2017 5,256 - 716 - (2,561) (291) (639) 2,481
Charge directly to
equity for the year - - - 174 - - - 174
Charge to other
comprehensive
income for the year - - 3,692 - - - - 3,692
Charge (Credit) to
profit or loss for the
year (Note 47) 2,918 552 - (57) 181 100 639 4,333
Acquisition of subsidiary 150 - - - - - (351) (201)
Disposal of subsidiary (469) - (66) - 280 - - (255)
Exchange differences 99 - 35 - (13) - 20 141
Effect of change in tax rate (100) - (27) - 51 - - (76)
At December 31, 2018 7,854 552 4,350 117 (2,062) (191) (331) 10,289
SFRS(I) 1-12.81(a) Convertible

SFRS(I) 1-12.81(ab) bond-equity
SFRS(I) 1-1.90 Company component
$’000
At January 1, 2017 -
Charge (credit) to profit or loss for the year -
At December 31, 2017 -

Charge directly to equity for the year 174
Charge (credit) to profit or loss for the year (57)
Effect of change in tax rate -
At December 31, 2018 117
155
Source

December 31, 2018
Certain deferred tax assets and liabilities have been offset in accordance with the group and the company’s accounting
policy. The following is the analysis of the deferred tax balances (after offset) for statement of financial position purposes:
Group Company
2018 2017 2017 2018 2017 2017
$’000 $’000 $’000 $’000 $’000 $’000
Deferred tax liabilities 13,173 5,772 4,350 117 - -

Deferred tax assets (2,884) (3,291) (2,856) - - -
10,289 2,481 1,494 117 - -
SFRS(I) 1-12.81(e) Subject to the agreement by the tax authorities, at the end of the reporting period, the group has unutilised tax losses of
$2.23 million (December 31, 2017: $12.53 million, January 1, 2017: $9.82 million) available for offset against future profits.
A deferred tax asset has been recognised in respect of $1.95 million (December 31, 2017: $3.76 million, January 1, 2017:
$1.74 million) of such losses. No deferred tax asset has been recognised in respect of the remaining $0.28 million (December
31, 2017: $8.77 million, January 1, 2017: $8.08 million) due to the unpredictability of future profit streams. Included in
unrecognised tax losses are losses of $0.28 million (December 31, 2017: $3.29 million, January 1, 2017: $3.54 million) that
will expire in 2020. Other losses may be carried forward indefinitely subject to the conditions imposed by law including the
retention of majority shareholders as defined.
SFRS(I) 1-12.81(f) At the end of the reporting period, the aggregate amount of temporary differences associated with undistributed earnings
of subsidiaries for which deferred tax liabilities have not been recognised is $7.9 million (December 31, 2017: $6.3 million,
January 1, 2017: $5.6 million). No liability has been recognised in respect of these differences because the group is in a
position to control the timing of the reversal of the temporary differences and it is probable that such differences will not
reverse in the foreseeable future.
SFRS(I) 1-12.81(f) Temporary differences arising in connection with interests in associates and jointly controlled entities are insignificant.

Source

December 31, 2018
SFRS(I) 1-12.80(d) Guidance notes – Alternative presentation of deferred tax information
1. Deferred tax balances
Deferred tax assets (liabilities) arise from the following:
2018/2017
Charged to
Charged other
Opening Charged to directly to comprehensive Acquisitions/ Exchange Changes in Closing
Group/Company balance income equity income Disposals differences tax rate balance
$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
SFRS(I) 1- Temporary differences
12.81(a),(g)
SFRS(I) 1-1.90
Cash flow hedges xx xx xx xx xx xx xx xx
Equity accounted
investments xx xx xx xx xx xx xx xx
Property, plant &
equipment xx xx xx xx xx xx xx xx
Finance leases xx xx xx xx xx xx xx xx
Intangible assets xx xx xx xx xx xx xx xx
Financial assets
at FVTOCI xx xx xx xx xx xx xx xx
Convertible loan notes xx xx xx xx xx xx xx xx
Exchange difference on
foreign subsidiary xx xx xx xx xx xx xx xx
Provisions xx xx xx xx xx xx xx xx
Doubtful debts xx xx xx xx xx xx xx xx
Other financial liabilities xx xx xx xx xx xx xx xx
Unclaimed share issue
and buy-back costs xx xx xx xx xx xx xx xx
Others [describe] xx xx xx xx xx xx xx xx
xx xx xx xx xx xx xx xx
Unused tax losses and credits
Tax losses xx xx xx xx xx xx xx xx
Foreign tax credits xx xx xx xx xx xx xx xx
Others xx xx xx xx xx xx xx xx
Deferred tax balances are presented in the statement of financial position as follows:

2018 2017 2017
$’000 $’000 $’000
Deferred tax liabilities xx xx xx

Directly associated with assets classified as held for sale (Note x) xx xx xx
xx xx xx
157
Source

December 31, 2018
2. Unrecognised deferred tax assets

2018 2017 2017
$’000 $’000 $’000
The following deferred tax assets have not been recognised
at the end of the reporting period:
Tax losses – revenue xx xx xx

Tax losses – capital xx xx xx
Unused tax credits (expire [date]) xx xx xx
Temporary differences xx xx xx
xx xx xx
The unrecognised tax losses will expire in 2020.
3. Unrecognised taxable temporary differences associated with investments and interests

2018 2017 2017
$’000 $’000 $’000
Taxable temporary differences in relation to investments in subsidiaries,
branches
and associates and interests in joint ventures for which deferred tax
liabilities
have not been recognised are attributable to the following: xx xx xx
Domestic subsidiaries xx xx xx
Foreign subsidiaries xx xx xx
Associates and jointly controlled entities xx xx xx
Others [describe] xx xx xx
xx xx xx

Source

December 31, 2018
SFRS(I) 7.7 27. Bank overdrafts and loans
Group
2018 2017 2017
$’000 $’000 $’000
SFRS(I) 7.8(g) Secured – at amortised cost
Bank overdrafts 1,907 1,909 2,219
Bank loans 358,845 435,394 353,000
360,752 437,303 355,219
Less: Amount due for settlement within 12 months
(shown under current liabilities) (94,307) (78,686) (29,999)
Amount due for settlement after 12 months 266,445 358,617 325,220
Bank overdrafts are repayable on demand. Overdrafts of $1.9 million (December 31, 2017: $1.9 million, January 1, 2017:
$2.2 million) have been secured by a charge over the group’s inventories.
The group has two principal bank loans:
a. A loan of $276.46 million (December 31, 2017: $353.00 million, January 1, 2017: $353.00 million). The loan was raised
on February 1, 2015. Repayments commenced on January 31, 2018 and will continue until January 2, 2022. The loan is
secured by a charge over certain of the group’s properties. The loan carries interest at 1% plus prime rate.
b. A loan of $82.39 million (December 31, 2017: $82.39 million, January 1, 2017: $Nil) secured on certain current and
non-current assets of the group. This loan was advanced on July 1, 2017 and is due for repayment on January 3, 2021.
The bank loan carries fixed interest rate at 8% (2017: 8%) per annum.
SFRS(I) 1-7.50 At December 31, 2018, the group had available $200 million (December 31, 2017: $200 million, January 1, 2017: $200
million) of undrawn committed borrowing facilities in respect of which all conditions precedent had been met.
Guidance notes
SFRS(I) 7.18 Breach of loan agreement
If applicable, the following is an illustrative disclosure:
During 2018, the group was late in paying interest for the first quarter on one of its loans with a carrying amount of
$x million. The delay arose because of a temporary lack of funds on the date interest was payable due to a technical
problem on settlement. The interest payment outstanding of $y was repaid in full on the following day, including the
additional interest and penalty. The lender did not request accelerated repayment of the loan and the terms of the loan
were not changed. Management has reviewed the group’s settlement procedures to ensure that such circumstances do
not recur.
159
Source

December 31, 2018
SFRS(I) 1-7.44A- Reconciliation of liabilities arising from financing activities

44E
The table below details changes in the group’s liabilities arising from financing activities, including both cash and non-cash changes. Liabilities arising from financing activities are those for which
cash flows were, or future cash flows will be, classified in the group’s consolidated statement of cash flows as cash flows from financing activities.
Non-cash changes
Equity
component Fair value
Financing of Acquisition Disposal of adjustments New finance Foreign
January 1, cash flows convertible of subsidiary subsidiary (Notes 14, leases Deferred tax exchange Other December 31,
2018 (i) loan notes (Note 53) (Note 52) 45 and 46) (Note 54) (Note 26) movement changes (ii) 2018
$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
Bank loans (Note 27) 435,394 (70,756) - - (6,398) - - - 605 - 358,845
Loans from holding company (Note 28) 15,008 34 - - - - - - - - 15,042
Contingent consideration (Note 28) - - - 75 - - - - - - 75
Finance leases (Note 31) 2,727 (2,242) - - - - 1,560 - - 348 2,393
Convertible loan notes (Note 33) - 25,000 (821) - - - - (174) - 322 24,327
Derivative financial instrument

hedging financial liabilities (Note 14) - - - - - 273 - - - - 273
453,129 (47,964) (821) 75 (6,398) 273 1,560 (174) 605 670 400,955

Source

December 31, 2018
Non-cash changes
Equity
component Fair value
Financing of Acquisition Disposal of adjustments New finance Foreign Other
January 1, cash flows convertible of subsidiary subsidiary (Notes 14, leases Deferred tax exchange changes December 31,
2017 (i) loan notes (Note 53) (Note 52) 45 and 46) (Note 54) (Note 26) movement (ii) 2017
$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
Bank loans (Note 27) 353,000 83,019 - - - - - - (625) - 435,394
Loans from holding company (Note 28) 15,551 (543) - - - - - - - - 15,008
Contingent consideration (Note 28) - - - - - - - - - - -
Finance leases (Note 31) 3,226 (1,532) - - - - 800 - - 233 2,727
Convertible loan notes (Note 33) - - - - - - - - - - -
Derivative financial instrument

hedging financial liabilities (Note 14) - - - - - - - - - - -
371,777 80,944 - - - - 800 - (625) 233 453,129
(i) The cash flows make up the net amount of proceeds from borrowings and repayments of borrowings in the statement of cash flows.
(ii) Other changes include interest accruals and payments.
161
Source

December 31, 2018
SFRS(I) 7.7 28. Trade and other payables
Group Company
2018 2017 2017 2018 2017 2017
$’000 $’000 $’000 $’000 $’000 $’000
Trade creditors and accruals 169,685 113,237 90,431 351 298 490
Loans from holding company
(Note 5) 15,042 15,008 15,551 6,603 7,209 9,571
Financial guarantee contracts 24 18 - - - -
Other payables due to holding
company (Note 5) 231 139 111 - - -
Other payables due to related
companies (Note 5) 149 78 69 - - -
Other payables due to
subsidiaries (Notes 5 and 22) - - - 111 79 -
Contingent consideration
recognised on the acquisition
of Huiji Electronics Systems
(China) Limited (Note 53.1) 75 - - - - -
185,206 128,480 106,162 7,065 7,586 10,061
Current 185,131 128,480 106,162 7,065 7,586 10,061

Non-current 75 - - - - -
185,206 128,480 106,162 7,065 7,586 10,061
SFRS(I) 7.7 The average credit period on purchases of goods is 3 months (2017: 3 months). No interest is charged on the trade payables
for the first 60 days from the date of invoice. Thereafter, interest is charged at 2% (2017: 2%) per annum on the outstanding
balance. The group has financial risk management policies in place to ensure that all payables are within the credit
timeframe.
Trade creditors and accruals principally comprise amounts outstanding for trade purchases and ongoing costs.
Loans from the holding company are unsecured, interest-free and repayable on demand.
The group is a party to a financial guarantee contract where an entity in the group has provided a financial guarantee to a
bank in respect of an entity external to the group. The company also provides a financial guarantee to a bank in respect of
loans borrowed by certain subsidiaries. No material adjustment was required in the separate financial statements of the
company to recognise the financial guarantee liability.

Source

December 31, 2018
Guidance notes – Loss allowance on financial guarantee contracts
If there is an amount of loss allowance on financial guarantee contracts provided by the entity, the following is applicable
illustrative disclosure:
SFRS(I) At the end of the reporting period, management has assessed the past due status of the debts under guarantee, the
7.35G(a),(b) financial position of the debtors as well as the economic outlook of the industries in which the debtors operate, and
concluded that there has not been a significant increase in the credit risk since initial recognition of the financial guarantee
contracts. Accordingly, the loss allowance for financial guarantee contracts issued by the group is measured at an amount
equal to 12-month expected credit losses (ECL). [Describe more details].
SFRS(I) 7.35G(c) There has been no change in the estimation techniques or significant assumptions made during the current reporting
period in assessing the loss allowance for these financial assets.
SFRS(I) 7.35H The following table shows the movement in loss allowance that has been recognised for the financial guarantee contracts:
Group
2018 2017
12-month ECL 12-month ECL
$’000 $’000
Balance at beginning of year xx xx
Net financial guarantee contracts issued xx xx

Balance at end of year xx xx
SFRS(I) 7.35B(b) The increase in loss allowance in both years was due to new financial guarantee contracts issued in the respective years.
SFRS(I) 7.35I
SFRS(I) 3.B67(b) On the acquisition of Huiji Electronic Systems (China) Limited (Note 53), the group recognised a contingent consideration
payable with acquisition date fair values of $75,000. At the end of the reporting period, there have been no changes to the
amounts recognised arising from changes in range of outcomes or valuation techniques applied.
SFRS(I) 3.B67(b) Guidance notes – Contingent consideration from business combination
For each reporting period after the acquisition date until the entity collects, sells or otherwise loses the right to a contingent
consideration asset, or until the entity settles a contingent consideration liability or the liability is cancelled or expires,
the acquirer shall disclose the following:
(i) Any changes in the recognised amounts, including any differences arising upon settlement;
(ii) Any changes in the range of outcomes (undiscounted) and the reasons for those changes; and
(iii) The valuation techniques and key model inputs used to measure contingent consideration.
Disclosures are made for each material business combination or in the aggregate for individually immaterial business
combinations that are material collectively.
163
Source

December 31, 2018
29. Contract liabilities
Group
2018 2017 2017
$’000 $’000 $’000
SFRS(I) 15.116(a) Amounts received in advance of delivery for internet sale (i) 219 471 366
Maintenance services(ii) 4,790 4,342 3,800
Arising from customer loyalty programme(iii) 172 147 104
Amounts related to construction contracts(iv) 3,888 3,631 3,944
9,069 8,591 8,214
Analysed as:
Current 6,215 6,793 6,357
Non-current 2,854 1,798 1,857
9,069 8,591 8,214
SFRS(I) 15.117 (i) For internet sales, revenue is recognised when control of the goods has transferred to the customer, being at the point
the goods are delivered to the customer. When the customer initially purchases the goods online, the transaction price
received at that point by the group is recognised as contract liability until the goods have been delivered to the
customer.
(ii) Revenue relating to maintenance services is recognised over time although the customer pays up-front in full for these
services. A contract liability is recognised for revenue relating to the maintenance services at the time of the initial
sales transaction and is released over the service period.
(iii) A contract liability arises in respect of the group’s Maxi–Points Scheme as these points provide a benefit to customers
that they would not receive without entering into a purchase contract and the promise to provide loyalty points to the
customer is therefore a separate performance obligation. A contract liability is recognised for revenue relating to the
loyalty points at the time of the initial sales transaction.
(iv) Contract liabilities relating to construction contracts are balances due to customers under construction contracts. These
arise when a particular milestone payment exceeds the revenue recognised to date under the cost–to–cost method.
SFRS(I) 15.118 There were no significant changes in the contract liability balances during the reporting period.
Guidance notes
SFRS(I) 15.118 SFRS(I) 15.118 contains a requirement to explain the significant changes in the contract asset and contract liability
balances during the reporting period. As there has been no significant movement on these balances in the period, no
further disclosure has been included.
The following table shows how much of the revenue recognised in the current reporting period relates to brought–forward
contract liabilities. There was no revenue recognised in the current reporting period that related to performance obligations
that were satisfied in a prior year.

Source

December 31, 2018
SFRS(I) Group’s revenue recognised that was included in the contract liability balance at the beginning of the period:
15.116(b),(c)
2018 2017
$’000 $’000
Amounts received in advance of delivery for internet sale 471 366

Maintenance services 2,569 1,984
Arising from customer loyalty programme 122 63
Amounts related to construction contracts 3,631 3,944
6,793 6,357
30. Refund liabilities
Group
2018 2017 2017
$’000 $’000 $’000
SFRS(I) 15.B21(b) Refund liabilities 1,083 1,139 1,012
SFRS(I) 15.119(d) The refund liabilities relate to customers’ right to return products within 30 days of purchase. At the point of sale, a refund
SFRS(I) 15.126(d) liability and a corresponding adjustment to revenue is recognised for those products expected to be returned. The group
uses its accumulated historical experience to estimate the number of returns on a portfolio level using the expected value
method.
31. Finance leases
Group
Present value of
Minimum lease payments minimum lease payments
2018 2017 2017 2018 2017 2017
$’000 $’000 $’000 $’000 $’000 $’000
SFRS(I) 1-17.31(b) Amounts payable under finance leases:
Within one year 1,655 2,245 2,156 1,470 1,483 1,982

In the second to fifth year inclusive 1,014 1,365 1,353 923 1,244 1,244
2,669 3,610 3,509 2,393 2,727 3,226
Less: Future finance charges (276) (883) (283) n.a. n.a. n.a.
Present value of lease obligations 2,393 2,727 3,226 2,393 2,727 3,226
SFRS(I) 1-1.61 Less: Amount due for settlement
within 12 months
(shown under current liabilities) (1,470) (1,483) (1,982)
Amount due for settlement
after 12 months 923 1,244 1,244
SFRS(I) 1-17.31(e) It is the group’s policy to lease certain of its plant and equipment under finance leases. The average lease term is 4 years.
SFRS(I) 7.7 In 2018, the average effective borrowing rate was 8.5% (2017: 8.8%). Interest rates are fixed at the contract date, and
thus expose the group to fair value interest rate risk. All leases are on a fixed repayment basis and no arrangements have
been entered into for contingent rental payments.
SFRS(I) 1-16.74(a) The group’s obligations under finance leases are secured by the lessors’ title to the leased assets.
165
Source

December 31, 2018
SFRS(I) 1-37.84(a)- 32. Provisions

(c)
Provision for
Warranty rectification
Group provision work Other Total
$’000 $’000 $’000 $’000
At January 1, 2017 4,323 - 62 4,385

Addition provision in the year 707 - 431 1,138
Utilisation of provision (3,458) - - (3,458)
At December 31, 2017 1,572 - 493 2,065

Contingent liability recognised on the acquisition of Huiji
Electronic Systems (China) Limited (Note 53.2) - - 21 21
Unwinding of discount - - - -
Addition provision in the year 946 14,170 58 15,174
Utilisation of provision (298) (8,112) (300) (8,710)
At December 31, 2018 2,220 6,058 272 8,550
Group
2018 2017 2017
$’000 $’000 $’000
SFRS(I) 1-1.61 Analysed as:
Current liabilities 6,432 2,065 4,385
Non-current liabilities 2,118 - -
8,550 2,065 4,385
SFRS(I) 1-37.85 The provision for warranty claims represents the present value of management’s best estimate of the future outflow of
economic benefits that will be required under the group’s 12-month warranty program for electronic products. The estimate
has been made on the basis of historical warranty trends and may vary as a result of new materials, altered manufacturing
processes or other events affecting product quality.
SFRS(I) 1-37.85 The provision for rectification work relates to the estimated cost of work agreed to be carried out for the rectification of
goods supplied to one of the group’s major customers (Note 49). Anticipated expenditure for 2019 is $3.94 million, and for
2020 is $2.12 million. These amounts have not been discounted for the purpose of measuring the provision for rectification
work, because the effect is not material.
SFRS(I) 1-37.86 On the acquisition of Huiji Electronic Systems (China) Limited (Note 53), the group recognised an additional contingent
SFRS(I) 3.B64(j) liability in respect of employees’ compensation claims outstanding against that entity. The amount was settled prior to the
end of the reporting period.

Source

December 31, 2018
SFRS(I) 1- Guidance notes – Disclosure of other types of provisions

37.85(a),(b)
Where applicable, the following illustrative notes could be used:
i. The provision for onerous lease contracts represents the present value of the future lease payments that the group
is presently obligated to make under non-cancellable onerous operating lease contracts, less revenue expected to
be earned on the lease including estimated future sub-lease revenue, where applicable. The estimate may vary as
a result of changes in the utilisation of the leased premises and sub-lease arrangements where applicable. The
unexpired term of the leases ranges from 3 to 5 years.
ii. The provision for restructuring and termination costs represents the present value of management’s best estimate
of the direct costs of the restructuring that are not associated with the ongoing activities of the group, including
termination benefits. The restructuring is expected to be completed by [date].
iii. The provision for decommissioning costs represents the present value of management’s best estimate of the future
outflow of economic benefits that will be required to remove leasehold improvements from leased property.
The estimate has been made on the basis of quotes obtained from external contractors. The unexpired term of the
leases ranges from 3 to 5 years.
SFRS(I) 7.17 33. Convertible loan notes
The convertible loan notes were issued on April 1, 2018, and are secured by a personal guarantee of a director. The notes
are convertible into ordinary shares of the company at any time between the date of issue of the notes and their settlement
date at the option of the holder. On issue, the loan notes were convertible at 18 shares per $10 loan note.
If the notes are not converted, they will be redeemed on April 1, 2020 at par. Interest of 5% will be paid annually until
settlement date.
The net proceeds received from the issue of the convertible loan notes have been split between the liability element and an
equity component, representing the fair value of the embedded option to convert the liability into equity of the group,
as follows:
Group and
Company
2018
$’000
Nominal value of convertible loan notes issued 25,000

Equity component (net of deferred tax) (821)
Deferred tax liability (174)
Liability component at date of issue 24,005
Interest charged 1,260
Interest paid (938)
Liability component at December 31, 2018 24,327
SFRS(I) 7.17 The interest charged for the year is calculated by applying an effective interest rate of 7% to the liability component for the
nine month period since the loan notes were issued.
167
Source

December 31, 2018
34. Retirement benefit obligations
SFRS(I) 1-19.43 Defined contribution plans
The employees of GAAP Singapore Ltd and its subsidiaries that are located in Singapore are members of a state-managed
retirement benefit plan, the Central Provident Board Fund, operated by the Government of Singapore. The company and the
subsidiaries are required to contribute a specified percentage of payroll costs to the retirement benefit scheme to fund the
benefits. The only obligation of the group with respect to the retirement benefit plan is to make the specified contributions.
The group operates defined contribution retirement benefit plans for all qualifying employees of its subsidiaries in the People’s
Republic of China and U.S.A. The assets of the plans are held separately from those of the group in funds under the control
of trustees. Where employees leave the plans prior to the contributions fully vesting, the contributions payable by the group
are reduced by the amount of forfeited contributions.
SFRS(I) 1-19.53 The total expense recognised in profit or loss of $9.8 million (2017: $7.3 million) represents contributions payable to these
plans by the group at rates specified in the rules of the plans. As at December 31, 2018, contributions of $0.7 million
(2017: $0.8 million, January 1, 2017: $0.85 million) due in respect of current financial year had not been paid over to the
plans. The amounts were paid over subsequent to the end of the reporting period.
Defined benefit plan
SFRS(I) 1-19.139 The group operates a funded defined benefit plan for qualifying employees of its subsidiaries in the People’s Republic of
China, and previously for the employees of GAAP Playsystems Limited. Under the plan, the employees are entitled to
retirement benefits varying between 40% and 65% of final salary on attainment of a retirement age of 60. No other
post-retirement benefits are provided.
SFRS(I) 1-19.139(b) The plan in the People’s Republic of China typically exposes the group to actuarial risks such as: investment risk, interest
rate risk, longevity risk and salary risk.
Investment risk The present value of the defined benefit plan liability is calculated using a discount rate determined by
reference to high quality corporate bond yields; if the return on plan asset is below this rate, it will
create a plan deficit. Currently the plan has a relatively balanced investment in equity securities, debt
instruments and real estates. Due to the long-term nature of the plan liabilities, the board of the pension
fund considers it appropriate that a reasonable portion of the plan assets should be invested in equity
securities and in real estate to leverage the return generated by the fund.
Interest risk A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset
by an increase in the return on the plan’s debt investments.
Longevity risk The present value of the defined benefit plan liability is calculated by reference to the best estimate of
the mortality of plan participants both during and after their employment. An increase in the life
expectancy of the plan participants will increase the plan’s liability.
Salary risk The present value of the defined benefit plan liability is calculated by reference to the future salaries of
plan participants. As such, an increase in the salary of the plan participants will increase the plan’s
liability.
The risk relating to benefits to be paid to the dependents of the plan members (widow and orphan benefits) is re-insured by
an external insurance company.

Source

December 31, 2018
The actuarial valuation of the plan assets and the present value of the defined benefit obligation were carried out at
December 31, 2018 by Ms L.H. Poh, Fellow of the Institute of Actuaries (December 31, 2017 and January 1, 2017: Ms L.H.
Poh, Fellow of the Institute of Actuaries). The present value of the defined benefit obligation, and the related current service
cost and past service cost, were measured using the projected unit credit method.
SFRS(I) 1-19.144 The principal assumptions used for the purpose of the actuarial valuations were as follows:
Valuation at
2018 2017 2017
Discount rate 7% 7% 7%
Expected return on plan assets 9% 8% 8%
Expected rate of salary increases 5% 5% 5%
Future pension increases 4% 4% 4%
Average longevity (in years) at retirement age for current pensioners*
Males 27.5 27.3 27.3
Females 29.8 29.6 29.6
Average longevity (in years) at retirement age for current employees
(future pensioners)*
Males 29.5 29.3 29.3
Females 31.0 30.0 30.0
Others [describe]
* Based on the People’s Republic of China’s standard mortality table [with modification to reflect expected changes in *
mortality]. Others [(please describe)].
SFRS(I) 1-19.140 The amount recognised in the statement of financial position in respect of the group’s defined benefit retirement benefit plan
is as follows:
Group
2018 2017 2017
$’000 $’000 $’000
Present value of funded obligations 159,021 157,302 169,541

Fair value of plan assets (125,093) (118,828) (119,736)
Net liability recognised in the statement of financial position 33,928 38,474 49,805
169
Source

December 31, 2018
SFRS(I) 1-19.120 Amounts recognised in profit or loss in respect of these defined benefit plans are as follows.
SFRS(I) 1-19.135
Group
2018 2017
$’000 $’000
SFRS(I) 1-19.141 Service cost
Current service cost 17,561 12,297
Past service cost and (gain) loss from settlements (9,903) (6,306)
Net interest expense 2,578 2,554
Components of defined benefit costs recognised in profit or loss 10,236 8,545
Remeasurement on the net defined benefit liability:

Return on plan assets (excluding amounts included in net interest expense) - -
Actuarial gains and losses arising from changes in financial assumptions - -
Actuarial gains and losses arising from changes in demographic assumptions - -
Actuarial gains and losses arising from changes in experience adjustments - -
Others (describe) - -
Adjustments for restrictions on the defined benefit asset - -
Components of defined benefit costs recognised in other comprehensive income - -
Total 10,236 8,545
SFRS(I) 1-19.135 The charge for the year is included in the employee benefits expense in profit or loss. [Where analysis of expenses recognised
in profit or loss is by nature]
OR
Of the charge for the year, $7.83 million (2017: $6.54 million) is included in profit or loss in cost of sales and $2.41 million
(2017: $2.01 million) is included in administrative expenses. [Where analysis of expenses recognised in profit or loss is by
function]

Source

December 31, 2018
SFRS(I) 1-19.141 Changes in the present value of the defined benefit obligation are as follows:
Group
2018 2017
$’000 $’000
Opening defined benefit obligation 157,302 169,541

Current service cost 17,561 12,297
Interest cost 9,021 10,057
Remeasurement (gains) losses:
Actuarial gains and losses from changes in financial assumptions - -
Actuarial gains and losses from changes in demographic assumptions - -
Actuarial gains and losses from experience adjustments - -
Past service cost, including (gains) losses on curtailments (9,903) (6,306)
Obligation transferred on disposal of subsidiary (4,932) -
Liabilities assumed in a business combination 2,436 -
Exchange differences on foreign plans - -
Benefits paid (12,464) (28,287)
Closing defined benefit obligation 159,021 157,302
SFRS(I) 1-19.141 Changes in the fair value of plan assets are as follows:
Group
2018 2017
$’000 $’000
Opening fair value of plan assets 118,828 119,736

Interest income 6,443 7,503
Remeasurement gains (losses):
Return on plan assets (excluding amounts included in net interest expense) - -
Contributions by employer 6,278 11,440
Contributions by plan participants 5,570 8,650
Exchange difference 438 (214)
Benefits paid (12,464) (28,287)
Closing fair value of plan assets 125,093 118,828
171
Source

December 31, 2018
SFRS(I) 1-19.142 The fair value of plan assets at the end of the reporting period is analysed as follows:
Group
2018 2017 2017
$’000 $’000 $’000
Equity instruments (categorised by industry type)
- Consumer industry 1,182 2,629 2,666
- Energy and utilities 2,000 2,000 2,000
Subtotal 3,182 4,629 4,666
Debt instruments (categorised by issuer’s rating)

- AAA 24,096 28,735 29,030
- AA 10,000 10,000 10,000
Subtotal 34,096 38,735 39,030
Property (as categorised by nature and location)

- Retail shops in Shanghai 20,000 15,000 13,000
- Residential properties in Beijing 9,717 3,226 5,365
Subtotal 29,717 18,226 18,365
Derivatives:
- Interest rate swaps 40,000 40,000 40,000
- Forward foreign exchange contracts 18,098 17,238 17,675
Subtotal 58,098 57,238 57,675
Total 125,093 118,828 119,736
SFRS(I) 1-19.142 The fair values of the above equity and debt instruments are determined based on quoted market prices in active markets
whereas the fair values of properties and derivatives are not based on quoted market prices in active markets. It is the
policy of the fund to use interest rate swaps to hedge its exposure to interest rate risk. This policy has been implemented
during the current and prior years. Foreign currency exposures are fully hedged by the use of the forward foreign exchange
contracts.
The actual return on plan assets was $6.4 million (2017: $7.5 million).
SFRS(I) 1-19.143 The plan assets do not include any of the group’s own financial instruments, nor any property occupied by, or other assets
used by, the group.
SFRS(I) 1-19.145(a) Significant actuarial assumptions for the determination of the defined obligation are discount rate, expected salary increase
and mortality. The sensitivity analyses below have been determined based on reasonably possible changes of the respective
assumptions occurring at the end of the reporting period, while holding all other assumptions constant.
 If the discount rate is 100 basis points higher (lower), the defined benefit obligation would decrease by $744,000
(increase by $740,000).
 If the expected salary growth increases (decreases) by 1%, the defined benefit obligation would increase by $120,000
(decrease by $122,000).
 If the life expectancy increases (decreases) by one year for both men and women, the defined benefit obligation would
increase by $150,000 (decrease by $156,000).
SFRS(I) 1-19.145(b) The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as
it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be
correlated.

Source

December 31, 2018
Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been
calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in
calculating the defined benefit obligation liability recognised in the statement of financial position.
SFRS(I) 1-19.145(c) There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.
SFRS(I) 1-19.146 Each year an Asset-Liability-Matching study is performed in which the consequences of the strategic investment policies are
analysed in terms of risk-and-return profiles. Investment and contribution policies are integrated within this study. Main
strategic choices that are formulated in the actuarial and technical policy document of the fund are:
 Asset mix based on 25% equity instruments, 50% debt instruments and 25% investment property;
 Interest rate sensitivity caused by the duration of the defined benefit obligation should be reduced by 30% by the use
of debt instruments in combination with interest rate swaps.
 Maintaining an equity buffer that gives a 97.5% assurance that assets are sufficient within the next 12 months.
There has been no change in the process used by the group to manage its risks from prior periods.
SFRS(I) 1-19.147 The group’s subsidiaries fund the cost of the entitlements expected to be earned on a yearly basis. Employees pay a fixed
5% percentage of pensionable salary. The residual contribution (including back service payments) is paid by the entities of
the group. The funding requirements are based on the local actuarial measurement framework. In this framework the
discount rate is set on a risk free rate. Furthermore, premiums are determined on a current salary base. Additional liabilities
stemming from past service due to salary increases (back-service liabilities) are paid immediately to the fund. Apart from
paying the costs of the entitlements, the group’s subsidiaries are not liable to pay additional contributions in case the fund
does not hold sufficient assets. In that case, the fund would take other measures to restore its solvency, such as a reduction
of the entitlements of the plan members.
The average duration of the benefit obligation at December 31, 2018 is 16.5 years (December 31, 2017: 15.6 years, January
1, 2017: 14.9 years). This number can be analysed as follows:
 Active members: 19.4 years (December 31, 2017: 18.4 years, January 1, 2017: 17.4 years);
 Deferred members: 22.6 years (December 31, 2017: 21.5 years, January 1, 2017: 20.8 years); and
 Retired members: 9.3 years (December 31, 2017: 8.5 years, January 1, 2017: 7.8 years).
The group expects to contribute approximately $10 million (2017: $8 million) to its defined benefit plan in the subsequent
financial year.
173
Source

December 31, 2018
35. Share-based payments
Equity-settled share option scheme
SFRS(I) 2.45(a) The company has a share option scheme for all employees of the company. The scheme is administered by the Remuneration
and Share Option Committee. Options are exercisable at a price based on the average of the last done prices for the shares
of the company on the Singapore Exchange Securities Trading Limited for the three market days preceding the date of grant.
The Remuneration and Share Option Committee may at its discretion fix the exercise price at a discount not exceeding 20%
to the above price. The vesting period is 2 years. If the options remain unexercised after a period of 4 years from the date
of grant, the options expire. Options are forfeited if the employee leaves the group before the options vest.
Details of the share options outstanding during the year are as follows:
SFRS(I) 2.45(b) Group and Company

2018 2017
Number of Weighted Number of Weighted
share average share average
options exercise price options exercise price
$ $
Outstanding at the beginning of the year 4,500,000 4.31 2,500,000 4.45

Granted during the year 1,700,000 4.51 2,000,000 4.22
Forfeited during the year (1,000) 4.45 - -
Exercised during the year (650,000) 4.45 - -
Expired during the year (60,000) 4.45 - -
Outstanding at the end of the year 5,489,000 4.35 4,500,000 4.31
Exercisable at the end of the year 1,789,000 4.45 2,500,000 4.45
SFRS(I) 2.45(c),(d) The weighted average share price at the date of exercise for share options exercised during the year was $4.85 (2017: $Nil).
The options outstanding at the end of the year have a weighted average remaining contractual life of 3.4 years
(December 31, 2017: 3.6 years, January 1, 2017: 3 years).
SFRS(I) 2.47(a) In 2018, options were granted on March 31, June 30 and October 31. The estimated fair values of the options granted on
those dates were $1.84, $2.35 and $2.84 respectively. In 2017, options were granted on June 30 and December 31.
The estimated fair values of the options granted on those dates were $1.22 and $2.22 respectively.
These fair values for share options granted during the year were calculated using The Black-Scholes pricing model.
The inputs into the model were as follows:
2018 2017
$’000 $’000
Weighted average share price $4.85 $4.37

Weighted average exercise price $4.51 $4.22
Expected volatility 40% 35%
Expected life 4 4
Risk free rate 3.5% 3.0%
Expected dividend yield Nil Nil

Source

December 31, 2018
SFRS(I) 2.47(a) Expected volatility was determined by calculating the historical volatility of the company’s share price over the previous
4 years. The expected life used in the model has been adjusted, based on management’s best estimate, for the effects of
non-transferability, exercise restrictions and behavioural considerations.
SFRS(I) 2.51(a) The group and the company recognised total expenses of $2.86 million (2017: $1.20 million) related to equity-settled
share-based payment transactions during the year.
Guidance notes – Share based payment modifications
SFRS(I) 2.47(c) requires that for share-based payment arrangements that were modified during the period, the entity is
required to disclose:
(i) An explanation of those modifications;

(ii) The incremental fair value granted (as a result of those modifications); and
(iii) Information of how the incremental fair value granted was measured, consistently with the requirements set out in
SFRS(I) 2.47(a) & (b).
Cash-settled share-based payments
SFRS(I) 2.45(a) The group issued to certain employees share appreciation rights (“SARs”) that require the group to pay the intrinsic value
SFRS(I) 2.51(a),(b) of the SAR to the employee at the date of exercise. At December 31, 2018, the group and the company have recorded
liabilities of $6.68 million (December 31, 2017: $3.52 million, January 1, 2017: $Nil). The fair value of the SARs is determined
using the Black-Scholes pricing model using the assumptions noted above. The group and the company recorded total
expenses of $3.16 million (2017: $3.52 million) during the year in respect of SARs. At December 31, 2018, the total intrinsic
value of the vested SARs was $Nil (December 31, 2017: $Nil, January 1, 2017: $Nil).
Other share-based payment plan
SFRS(I) 2.45(a) Under the company’s employee share purchase plan, all employees may purchase the company’s shares at 85% of the
closing market price on the date of grant during a two-week period each year. Employees may purchase shares having a
value not exceeding 15% of their gross compensation during the offering period. The shares so purchased are generally
placed in the employees share savings plan and will only be released to employees who remain in the company’s employment
for a period of three years from the date of grant. Pursuant to the plan, the company issued 1,000,000 shares (2017: Nil)
during the year, at an average share price of $4.85 (2017: $Nil). The discount of $0.7 million (2017: $Nil) will be expensed
over the vesting period of 3 years.
175
Source

December 31, 2018
SFRS(I) 1-1.79(a) 36. Share capital
Group and Company

2018 2017 2018 2017
Number of ordinary shares $’000 $’000
Issued and paid up:
At the beginning of the year 120,000,000 120,000,000 152,098 152,098
Exercise of share options 650,000 - 650 -
Issued for cash 1,000,000 - 5,350 -
At the end of the year 121,650,000 120,000,000 158,098 152,098
Fully paid ordinary shares, which have no par value, carry one vote per share and a right to dividends as and when declared
by the company.
SFRS(I) 1-1.79(a) Share options over ordinary shares granted under the employee share option plan
As at December 31, 2018, employees held options over 5,489,000 ordinary shares (of which 3,700,000 are unvested) in
aggregate. The number of options and their expiry dates are as follows:
Date of grant Number of options Expiring on:
July 1, 2015 1,789,000 June 30, 2019

June 30, 2017 1,000,000 June 30, 2021
December 31, 2017 1,000,000 December 31, 2022
March 31, 2018 250,000 March 31, 2022
June 30, 2018 1,150,000 June 30, 2022
October 31, 2018 300,000 October 31, 2022
5,489,000
As at December 31, 2017, employees held options over 4,500,000 ordinary shares (of which 2,000,000 are unvested) in
aggregate. The number of options and their expiry dates are as follows:
July 1, 2015 2,500,000 June 30, 2019

June 30, 2017 1,000,000 June 30, 2021
December 31, 2017 1,000,000 December 31, 2022
4,500,000
As at January 1, 2017, employees held options over 2,500,000 ordinary shares (unvested) in aggregate. The number of
options and their expiry dates are as follows:
July 1, 2015 2,500,000 June 30, 2019
Share options granted under the employee share option plan carry no rights to dividends and no voting rights. Further details
of the employee share option plan are contained in Note 35.

Source

December 31, 2018
SFRS(I) 1-32.34 37. Treasury Shares
Group and Company

2018 2017 2018 2017
Number of ordinary shares $’000 $’000
At the beginning of the year - - - -

Repurchased during the year 200,000 - 500 -
At the end of the year 200,000 - 500 -
The company acquired 200,000 of its own shares through purchases on the Singapore Exchange during the year. The t otal
amount paid to acquire the shares was $0.5 million and has been deducted from shareholders’ equity. The shares are held
as treasury shares. The company intends to reissue these shares to executives who exercise their share options under the
employee share option plan.
Guidance notes – Nature and purpose of reserve
SFRS(I) 1-1.79(b) requires an entity to disclose the description of the nature and purpose of each reserve within equity,
either in the statement of financial position or in the statement of changes in equity or in the notes to the financial
statements, e.g. in the accounting policy notes or as presented in the following paragraphs.
SFRS(I) 1-1.79(b) 38. Capital reserves
Equity reserve
The equity reserve represents:

(i) The equity component of convertible debt instruments; and
(ii) Effects of changes in ownership interests in subsidiaries when there is no change in control (see Note 22).
Share option reserve
The share option reserve arises on the grant of share options to employees under the employee share option plan. Further
information about share-based payments to employees is set in Notes 35 and 36.
177
Source

December 31, 2018
SFRS(I) 1-1.79(b) 39. Revaluation reserves
The property revaluation reserve arises on the revaluation of land and buildings. Where revalued land or buildings are sold,
the portion of the property revaluation reserve that relates to that asset, and is effectively realised, is transferred directly
to retained earnings.
SFRS(I) 1-16.77(f) The revaluation reserves are not available for distribution to the company’s shareholders.
SFRS(I) 1- Movement in property revaluation reserves

1.106(d)(ii)
Group
2018 2017
$’000 $’000
Balance at beginning of year 35,452 37,977

Revaluation changes during the year in other comprehensive income 53,283 (2,845)
Related income tax in other comprehensive income (3,692) 320
Share of other comprehensive income of associates and joint venture - -
Balance at end of year 85,043 35,452
SFRS(I) 1-1.79(b) The investments revaluation reserve represents the cumulative gains and losses arising on the revaluation of:
SFRS(I) 1-1.82A
(i) investments in equity instruments designated as at FVTOCI, net of cumulative gain/loss transferred to retained
earnings upon disposal, and
(ii) investments in debt instruments classified as at FVTOCI, net of cumulative loss allowance recognised on these
investments and cumulative gain/loss reclassified to profit or loss upon disposal or reclassification of these
investments.
SFRS(I) 1- Movement in investments revaluation reserves

1.106(d)(i),(ii)
Group
2018 2017
$’000 $’000
Balance at beginning of year 489 432

SFRS(I) 7.20(a)(vii) Fair value gain on investments in equity instruments designated as at FVTOCI 66 67
Income tax relating to fair value gain on investments in equity instruments designated
as at FVTOCI (20) (20)
SFRS(I) 9.B5.7.1 Cumulative (gain) loss on investments in equity instruments designated as at FVTOCI
transferred to retained earnings upon disposal - -
SFRS(I) 7.20(a)(viii) Fair value gain on investments in debt instruments classified as at FVTOCI 29 14
Income tax relating to fair value gain on investments in debt instruments classified
as at FVTOCI (9) (4)
SFRS(I) 7.20(a)(viii) Cumulative (gain) loss on investments in debt instruments classified as at FVTOCI
reclassified to profit or loss upon disposal - -
SFRS(I) 1-1.82(cb) Cumulative (gain) loss on investments in debt instruments classified as at FVTOCI
reclassified to profit or loss upon reclassification from FVTOCI to FVTPL - -
SFRS(I) 7.16A Impairment loss recognised on investments in debt instruments classified as at FVTOCI - -
Balance at end of year 555 489

Source

December 31, 2018
SFRS(I) 7.35H The following table shows the movement in 12m ECL that has been recognised for redeemable notes classified as at FVTOCI:
Group
2018 2017
$’000 $’000
Balance at beginning of year - -

Net movement for the year - -
Balance at end of year - -
SFRS(I) 7.11A(e) Investments in equity instruments designated as at FVTOCI are not subject to impairment, and their cumulative fair value
gain/loss included in the investments revaluation reserve is not subsequently reclassified to profit or loss. There has been
no transfer of the cumulative gain or loss arising from these equity investments within equity during the current or prior
period.
40. Hedging and translation reserves
The cash flow hedge reserve represents the cumulative amount of gains and losses on hedging instruments deemed effective
in cash flow hedges. The cumulative deferred gain or loss on the hedging instrument is recognised in profit or loss only when
the hedged transaction impacts the profit or loss, or is included directly in the initial cost or other carrying amount of the
hedged non-financial items (basis adjustment).
SFRS(I) 1- Movement in hedging reserves

1.106(d)(i),(ii)
Foreign exchange
risk Interest rate risk Total
2018 2017 2018 2017 2018 2017
$’000 $’000 $’000 $’000 $’000 $’000
Group
Balance at beginning of year 1,876 1,290 - - 1,876 1,290
SFRS(I) 7.24C(b)(i) Gain (Loss) arising on changes in fair value of
hedging instruments 155 686 1,779 - 1,934 686
Income tax related to gain (loss) recognised in
other comprehensive income - - - - - -
SFRS(I) 7.24C(b)(iv) (Gain) loss reclassified to profit or loss
- hedged item has affected profit or loss (578) (100) (195) - (773) (100)
(Gain) loss reclassified to profit or loss
- forecast transaction no longer expected to occur (85) - - - (85) -
Income tax related to amounts reclassified to
profit or loss - - - - - -
SFRS(I) 7.24E(a) Cumulative (gain) loss transferred to initial carrying
amount of hedged items - - - - - -
Income tax related to amounts transferred to initial
carrying amount of hedged item - - - - - -
Balance at end of year 1,368 1,876 1,584 - 2,952 1,876
179
Source

December 31, 2018
Exchange differences relating to the translation of the net assets of the group’s foreign operations, which relate to
subsidiaries only, from their functional currency into the parent’s functional currency, being Singapore dollars, are recognised
directly in the translation reserves.
SFRS(I) 1- Movement in translation reserves

1.106(d)(i),(ii)
Group
2018 2017
$’000 $’000
Balance at beginning of year (3,368) (4,098)

Gain (Loss) arising on changes in fair value of hedging instruments designated in
net investment hedge - -
Income tax relating to gain (loss) on hedges of net assets in foreign operations - -
Exchange differences on translating the net assets of foreign operations (1,693) 730
Income tax relating to gain (loss) arising on translating the net assets of
foreign operations - -
Gain (Loss) on hedging instruments reclassified to profit or loss on disposal of
foreign operations - -
Income tax related to gain (loss) on hedging instruments reclassified to profit or loss
on disposal of foreign operations - -
Gain (Loss) reclassified to profit or loss on disposal of foreign operations
Income tax related to gain (loss) reclassified to profit or loss on disposal of foreign operations
Balance at end of year (5,061) (3,368)
Guidance notes – hedges of a net investment in a foreign operation
SFRS(I) 7.24B If applicable, SFRS(I) 7.24B requires an entity to disclose, in a tabular format, the following amounts related to hedged
items separately by risk category for cash flow hedges and hedges of a net investment in a foreign operation:
(i) the change in value of the hedged item used as the basis for recognising hedge ineffectiveness for the period (i.e. for
cash flow hedges the change in value used to determine the recognised hedge ineffectiveness in accordance with paragraph
6.5.11(c) of SFRS(I) 9);
(ii) the balances in the cash flow hedge reserve and the foreign currency translation reserve for continuing hedges that
are accounted for in accordance with paragraphs 6.5.11 and 6.5.13(a) of SFRS(I) 9; and
(iii) the balances remaining in the cash flow hedge reserve and the foreign currency translation reserve from any hedging
relationships for which hedge accounting is no longer applied.

Source

December 31, 2018
Guidance notes – Other possible line items under “Reserves” account
If applicable, the following is an illustrative disclosure:
Movement in financial liabilities at FVTPL credit risk reserve
Group
2018 2017
$’000 $’000
Balance at beginning of year xx xx

SFRS(I) 7.20(a)(i) Fair value gain on financial liabilities designated as at FVTPL attributable to
changes in credit risk xx xx
Related income tax in other comprehensive income xx xx
Transfer of credit risk reserve to retained earnings upon derecognition of
related financial liabilities xx xx
Others [describe] xx xx
Balance at end of year xx xx
SFRS(I) 9.5.7.7 The changes in fair value of financial liabilities designated as at FVTPL attributable to the financial liabilities’ own credit
risk are recognised in other comprehensive income and accumulated in the financial liabilities at FVTPL credit risk reserve.
The cumulative gain or loss accumulated in this reserve is not subsequently reclassified to profit or loss.
SFRS(I) 1-1.92 41. Components of other comprehensive income
Other comprehensive income
Group
2018 2017
$’000 $’000
Items that will not be reclassified subsequently to profit or loss
SFRS(I) 9.B5.7.1 Net fair value gain on investments in equity instruments designated as at FVTOCI 46 47
changes in credit risk - -
Gain (Loss) on revaluation of property 53,283 (2,845)
SFRS(I) 1-1.91(b) Deferred tax arising on revaluation of property (3,692) 320
Remeasurement of defined benefit obligation - -
subject to basis adjustment - -
Items that may be reclassified subsequently to profit or loss

SFRS(I) 9.5.7.10 Net fair value gain on investments in debt instruments measured at FVTOCI 20 10
not subject to basis adjustment 1,076 586
Exchange differences on translation of foreign operations (1,693) 730
Other comprehensive income for the year, net of tax 49,040 (1,152)
Guidance notes – Reclassification adjustments
SFRS(I) 1-1.94 allows an entity to present reclassification adjustments in the statement of profit or loss and other
comprehensive income or in the notes. An entity presenting reclassification adjustments in the notes presents the
components of other comprehensive income after any related reclassification adjustments.
181
Source

December 31, 2018
42. Revenue
Guidance notes
SFRS(I) 15.113(a) SFRS(I) 15.113(a) requires revenue recognised from contracts with customers to be disclosed separately from its other
sources of revenue (e.g. rental income) unless that amount is presented separately in the statement of comprehensive
income in accordance with other standards.
The group derives its revenue from the transfer of goods and services over time and at a point in time in the following major
product lines. This is consistent with the revenue information that is disclosed for each reportable segment under SFRS(I) 8
(see Note 43).
SFRS(I) 15.114 A disaggregation of the group’s revenue for the year, for both continuing and discontinued operations, is as follows:
SFRS(I) 15.115
SFRS(I) 15.B89
Group
2018 2017
$’000 $’000
Segment revenue
Continuing operations:
Electronic equipment - direct sales 143,549 76,988
- wholesalers 290,439 230,956
- internet sales 150,013 77,126
Leisure goods - wholesalers 91,149 84,036
- retail outlets 55,694 38,491
Computer software installation 29,743 11,091
Construction 304,073 209,562
1,064,660 728,250
Discontinued operation:
Sale of electronic toys - retail outlets 159,438 141,203
1,224,098 869,453
Timing of revenue recognition

At a point in time:
Electronic equipment - direct sales 143,549 76,988
- wholesalers 201,756 197,010
Leisure goods - wholesalers 91,149 84,036
- retail outlets 55,694 38,491
Sale of electronic toys - retail outlets 159,438 141,203
712,186 562,731
Over time:
Electronic equipment - direct sales - -
- wholesalers 88,683 33,946
Computer software installation 29,743 11,091
Construction 304,073 209,562
511,912 306,722
1,224,098 869,453

Source

December 31, 2018
Guidance notes – Disaggregation of revenue
SFRS(I) 15.114 SFRS(I) 15.114 requires an entity to disaggregate revenue recognised from contracts with customers into categories that
depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. This
disaggregation will depend on the entity's individual facts and circumstances. The group has assessed that the
disaggregation of revenue by operating segments in Note 43 is appropriate in meeting this disclosure requirement as this
is the information regularly reviewed by the chief operating decision maker (CODM) in order to evaluate the financial
performance of the entity. The group also believes that presenting a disaggregation of revenue based on the timing of
transfer of goods or services (i.e. at a point in time or over time) provides users of the financial statements with useful
information as to the nature and timing of revenue from contracts with customers.
If an entity discloses disaggregated revenue on a basis other than that used for revenue information disclosed for each
reportable segment the entity should disclose sufficient information to allow users of the financial statements to understand
the relationship between these two disclosures.
SFRS(I) 15.120(a) The following table shows the aggregate amount of the transaction price allocated to performance obligations that are
unsatisfied (or partially unsatisfied) as at the end of the reporting period.
SFRS(I) 1.D34 As permitted under SFRS(I) 1, the transaction price allocated to (partially) unsatisfied performance obligations as of
December 31, 2017 is not disclosed, using the transition provisions of SFRS(I) 15.
Group
2018
$’000
Maintenance obligations relating to electronic equipment 10,800

Installation of software services 936
Construction of residential properties 6,936
18,672
Guidance notes
SFRS(I) 1.D34 A first-time adopter may apply the transition provisions in paragraph C5 of SFRS(I) 15. In those paragraphs references to
the date of initial application shall be interpreted as the beginning of the first SFRS(I) reporting period. If a first-time
adopter decides to apply those transition provisions, it shall also apply paragraph C6 of SFRS(I) 15.
SFRS(I) 15.120(b) Management expects that 72% of the transaction price allocated to the unsatisfied contracts as of December 31, 2018 will
be recognised as revenue during the next reporting period amounting to $13,445,000. Of the remaining 28%, $4,365,000
will be recognised in the 2020 financial year and $862,000 in the 2021 financial year.
Guidance notes – Practical expedient on disclosure of transaction price allocated to remaining performance
obligations
SFRS(I) 15.121 No disclosure of transaction price allocated to remaining performance obligations in accordance with SFRS(I) 15.120 is
necessary if either of the following conditions is met:
(a) The performance obligation is part of a contract that has an original expected during of one year or less; or
(b) Revenue is recognised based on the entity’s right to invoice the customer in the amount that corresponds directly
with the value of the entity’s performance completed to date in accordance with SFRS(I) 15.B16.
SFRS(I) 15.122 When the practical expedient in SFRS(I) 15.121 is applied, SFRS(I) 15.122 requires disclosure of such application. SFRS(I)
15.122 also requires qualitative disclosure of whether any consideration from contracts with customers is not included in
the transaction price (e.g. due to constraint on estimate of variable consideration) and, therefore, not included in the
information disclosed in accordance with SFRS(I) 15.120.
183
Source

December 31, 2018
Guidance notes – presentation of contract balances
There is no requirement in SFRS(I) 15 for contract balances (i.e. contract assets, receivables and contract liabilities) to be
disclosed together at a single place in the financial statements. Indeed, it will likely be more practical for many entities to
continue to include balances arising from contracts with customers within the same financial statement line item and
SFRS(I) 15.109 related notes as previously under FRS 18 e.g. contract liabilities within a deferred revenue note. SFRS(I) 15 allows entities
to use terms other than contract asset and contract liability to describe such balances.
Contract balances and the related disclosures have been included in the following places in the notes to the financial
statements:
Receivables Balance described as “Trade receivables” (Note 8)

Contract assets Note 9
Contract costs Note 10
Contract liabilities Note 29
Materiality considerations will affect the line items to be disclosed separately within each relevant SFRS(I) 15 contract
balance. A single net contract asset or liability should be presented for each contract balance. For illustrative purposes, all
line items are disclosed separately (ignoring the size of the balances involved).
43. Segment information
Guidance notes
The following segment information is required by SFRS(I) 8 Operating Segments, to be presented in the consolidated
financial statements of a group with a parent (and in the separate or individual financial statements of an entity):
 Whose debt or equity instruments are traded in a public market; or
 That files, or is in the process of filing, its (consolidated) financial statements with a securities commission or other
regulatory organisation for the purpose of issuing any class of instruments in a public market.
SFRS(I) 15 Revenue from Contracts with Customers and SFRS(I) 8 Operating Segments do not have similar aggregation
criteria. More disaggregation may be required in Note 42, because SFRS(I) 8 permits aggregation in certain situations.
Management should not assume the two disclosures will be disaggregated at the same level, unless they can conclude
that the disaggregation level is the same in both standards and segment revenue is measured on the same basis as the
revenue standard. In that case, the segment disclosures presented in Note 42 need not be repeated in Note 43.
SFRS(I) 8.22 Products and services from which reportable segments derive their revenues
Information reported to the group’s chief operating decision maker (CODM) for the purposes of resource allocation and
assessment of segment performance focuses on the types of goods or services delivered or provided, and in respect of the
“electronic equipment” and “leisure goods” operations, the information is further analysed based on the different classes of
customers. Management has chosen to organise the group around differences in products and services. No operating
segments have been aggregated in arriving at the reportable segments of the group.

Source

December 31, 2018
Specifically, the group’s reportable segments under SFRS(I) 8 are as follows:
Electronic equipment - Direct sale customers

- Wholesale customers
- Internet customers
Leisure goods - Wholesale customers

- Retail customers
Computer software installation
Construction
The leisure goods segments supply sports shoes and equipment, as well as outdoor play equipment.
The electronic equipment segment supply industrial electronic equipment to support the operations of heavy industrial
machinery, military equipment and automotives, electronic security systems and office electronic equipment (calculators,
computer peripherals etc.). It also supplied electronic toys prior to discontinuation (see below).
SFRS(I) 8.23 Segment revenues and results
The following is an analysis of the group’s revenue and results by reportable segment:
Revenue Net Profit

Group 2018 2017 2018 2017
$’000 $’000 $’000 $’000
Electronic equipment*
- Direct sale customers 143,549 76,988 29,975 6,052
- Wholesale customers 290,439 230,956 26,490 15,679
- Internet customers 150,013 77,126 5,740 3,014
Leisure goods
- Retail customers 55,694 38,491 10,390 2,835

- Corporate customers 29,743 11,091 19,465 5,981
Construction services
- Government customers 104,073 20,000 12,879 3,930
Total for continuing operations 1,064,660 728,250 150,865 58,009
Share of profit of associates and joint venture 1,270 1,517

Investment revenue 4,012 1,628
Central administration costs and directors’ salaries (19,132) (16,726)
Other gains and losses 120 (50)
Finance costs (31,870) (24,508)
SFRS(I) 8.28(b) Profit before tax (continuing operations) 105,265 19,870
185
Source

December 31, 2018
Revenue Net Profit

Group 2018 2017 2018 2017
$’000 $’000 $’000 $’000
Discontinued operation
Sale of electronic toys
- Retail customers 159,438 141,203 15,053 7,822
Total for discontinued operation 159,438 141,203 15,053 7,822
Central administration costs and directors’ salaries (2,067) (2,432)

Finance costs (493) (830)
SFRS(I) 8.28(b) Profit before tax (discontinued operation) 12,493 4,560
Income tax expense (continuing and discontinued operations) (17,983) (4,199)
SFRS(I) 8.28(a) Consolidated revenue and profit for the year 1,224,098 869,453 99,775 20,231
* excluding electronic toys
SFRS(I) 8.23(b) Revenue reported above represents revenue generated from external customers. There were no inter-segment sales in the
year (2017: $Nil).
SFRS(I) 8.27 The accounting policies of the reportable segments are the same as the group’s accounting policies described in Note 2.
SFRS(I) 8.23(f) Segment profit represents the profit earned by each segment without allocation of central administration costs and directors’
salaries, share of profit of associates and joint venture, investment revenue, finance costs and income tax expense. This is
the measure reported to the chief operating decision maker for the purposes of resource allocation and assessment of
segment performance.
The exceptional rectification costs of $14.17 million disclosed in Note 49 relate to the electronic equipment – direct sale
customers reportable segment.

Source

December 31, 2018
SFRS(I) 8.23 Group

2018 2017 2017
$’000 $’000 $’000
Segment assets
Electronic equipment
- Direct sale customers 220,063 183,103 169,420
- Wholesale customers 169,857 101,960 87,444
- Internet customers 22,320 17,250 16,000
Leisure goods
- Wholesale customers 226,117 211,798 204,380
- Retail customers 28,680 27,750 26,010

- Corporate customers 5,080 2,409 2,576
- Corporate customers 150,112 142,112 135,674
- Government customers 150,121 141,121 128,654
Total segment assets 972,350 827,503 770,158
Unallocated assets 184,232 151,076 99,083
SFRS(I) 8.28(c) Consolidated total assets 1,156,582 978,579 869,241
SFRS(I) 8.27 For the purposes of monitoring segment performance and allocating resources between segments, the chief operating
decision maker monitors the tangible, intangible and financial assets attributable to each segment.
All assets are allocated to reportable segments other than investments in associates (Note 23), investments in joint venture
(Note 24), “other” financial assets and tax assets. Goodwill has been allocated to reportable segments as described in
Note 20. Assets used jointly by reportable segments are allocated on the basis of the revenues earned by individual
reportable segments.
Guidance notes
An entity is required to disclose a measure of segment assets only if that measure is regularly reported to the chief
operating decision maker.
187
Source

December 31, 2018
Other segment information
Depreciation and Additions to

amortisation non-current assets
SFRS(I) 8.23(e) Group 2018 2017 2018 2017
SFRS(I) 8.24(b) $’000 $’000 $’000 $’000
Electronic equipment*
- Direct sale customers 8,000 5,000 23,723 12,318
- Internet customers 1,212 800 - 3,631
Leisure goods
- Retail customers 1,645 604 2,665 1,712

- Corporate customers 900 400 300 200
- Government customers 2,922 1,621 7,235 2,122
30,711 17,238 69,692 44,522
* excluding electronic toys
SFRS(I) 8.23(i) In addition to the depreciation and amortisation reported above, impairment losses of $4.13 million (2017: $Nil) and
$0.46 million (2017: $Nil) were recognised in respect of property, plant and equipment and goodwill, respectively.
These impairment losses were attributable to the following reportable segments:
2018
$’000
Electronic equipment
- Direct sale customers 2,130
- Wholesale customers 2,000
- Corporate customers 463
4,593
SFRS(I) 8.32 Revenue from major products and services
The group’s revenue from its major products and services are disclosed in Note 42.

Source

December 31, 2018
SFRS(I) 8.33(a),(b) Geographical information
The group operates in four principal geographical areas – U.S.A., Singapore (country of domicile), Malaysia and South Korea.
The group’s revenue from external customers and information about its segment assets (non-current assets excluding
investments in associates and joint venture, finance lease receivables, deferred tax assets and “other” financial assets) by
geographical location are detailed below:
Revenue from
external customers Non-current assets
2018 2017 2018 2017 2017
$’000 $’000 $’000 $’000 $’000
Based on location of customer
U.S.A. 822,699 584,347 350,876 325,787 314,370

Singapore 171,486 121,803 218,551 118,446 110,530
Malaysia 52,701 37,432 101,501 127,850 122,415
South Korea 137,892 97,942 20,000 20,000 20,000
Others 39,320 27,929 10,000 10,000 10,000
1,224,098 869,453 700,928 602,083 577,315
SFRS(I) 8.34 Information about major customers
Included in revenues arising from sale of electronic equipment to wholesale customers of $290.4 million
(2017: $231.0 million) are revenues of approximately $90.3 million (2017: $40.2 million) which arose from sale to the
group’s largest customer.
189
Source

December 31, 2018
44. Investment revenue
Group
2018 2017
$’000 $’000
Rental revenue:
SFRS(I) 1-17.47(e) Finance lease contingent rental revenue - -
Operating lease rental revenue:
SFRS(I) 1-40.75(f) Investment properties 600 680
SFRS(I) 1-17.56(b) Contingent rental revenue - -
Others - -
600 680
SFRS(I) 7.20(b) Interest revenue:

Bank deposits 100 10
Investment in debt instruments measured at FVTOCI 104 94
Finance lease receivables 2,573 981
Other financial assets measured at amortised cost 149 53
Total interest revenue 2,926 1,138
SFRS(I) 7.B5(e) Dividends from equity investments designated as at FVTOCI:

SFRS(I) 7.11A(d) Relating to investments derecognised during the year - -
SFRS(I) 7.11A(d) Relating to investments held at the end of the reporting period 486 452
Others (aggregate of immaterial items) - -
4,012 2,270
Investment revenue earned on financial assets, analysed by category of asset, is as follows:
Group
2018 2017
$’000 $’000
Financial assets measured at FVTOCI 104 94

Financial assets measured at amortised cost 2,822 1,044
2,926 1,138
Investment income earned on non-financial assets 1,086 1,132
4,012 2,270
Fair value gains and losses, as well as interest income on financial instruments classified as at FVTPL are included in “other
gains and losses” in Note 45.

Source

December 31, 2018
45. Other gains and losses
Group
2018 2017
$’000 $’000
SFRS(I) 1-1.98(c) Gain (Loss) on disposal of property, plant and equipment - -

SFRS(I) 1-1.98(d) Gain (Loss) on disposal of investments - -
SFRS(I) 1-20.39(b) Government grants received for staff re-training - -
Net foreign exchange gains (losses) (392) (196)
SFRS(I) 7.20(a)(i) Net gain (loss) arising on financial assets designated as at FVTPL - -
SFRS(I) 7.20(a)(i) Net gain (loss) arising on financial assets mandatorily measured at FVTPL 12 25
SFRS(I) 7.20(a)(vi) Net gain (loss) arising on financial assets measured at amortised cost - -
SFRS(I) 7.20(a)(i) Net gain (loss) arising on financial liabilities designated as at FVTPL - -
SFRS(I) 7.20(a)(i) Net gain (loss) arising on financial liabilities mandatorily measured at FVTPL - -
SFRS(I) 7.20(a)(v) Net gain (loss) arising on financial liabilities measured at amortised cost - -
SFRS(I) 1-40.76(d) Change in fair value of investment property 500 -
SFRS(I) 7.20(a)(viii) Reclassification of net gain (loss) on debt investments classified as at FVTOCI from equity to
profit or loss upon disposal - -
SFRS(I) 7.24A(c) Hedge ineffectiveness on cash flow hedges - -
SFRS(I) 7.24C(b)(ii)
SFRS(I) 7.24A(c) Hedge ineffectiveness on net investment hedges - -
SFRS(I) 7.24C(b)(ii)
Others - -
120 (171)
SFRS(I) 7.20(a) No other gains or losses have been recognised in respect of financial assets and financial liabilities other than as disclosed
in Notes 44, 45 and 46 and the loss allowance recognised/reversed in respect of certain financial assets and financial
guarantee contracts (see Note 49).
Guidance notes
SFRS(I) 7.20A If the entity has gain or loss recognised in the statement of comprehensive income arising from the derecognition of
financial assets measured at amortised cost, to disclose:
(i) an analysis of the gain or loss, showing separately gains and losses arising from derecognition of those financial assets;
and
(ii) the reasons for derecognising those financial assets.
191
Source

December 31, 2018
46. Finance costs
Continuing operations Discontinued operation Total

Group 2018 2017 2018 2017 2018 2017
$’000 $’000 $’000 $’000 $’000 $’000
Interest on bank overdrafts and loans 34,028 24,275 493 830 34,521 25,105
Interest on convertible loan notes (Note 33) 1,260 - - - 1,260 -
Interest on obligations under finance leases 348 233 - - 348 233
SFRS(I) 7.20(b) Total borrowing costs 35,636 24,508 493 830 36,129 25,338
SFRS(I) 1-23.26(a) Less: Amounts included in the cost of

qualifying assets (3,571) - - - (3,571) -
32,065 24,508 493 830 32,558 25,338
SFRS(I) 9.6.5.8(a) (Gain) Loss arising on derivatives designated

as hedging instruments in fair value hedges - - - - - -
SFRS(I) 9.6.5.8(b) (Gain) Loss arising on adjustment for hedged
item attributable to the hedged risk in a
designated fair value hedge accounting
relationship - - - - - -
Unwinding of discount on provisions - - - - - -
SFRS(I) Fair value gains on interest rate swaps
9.6.5.11(d)(ii) designated as cash flow hedges
reclassified from equity (Note 14) (195) - - - (195) -
31,870 24,508 493 830 32,363 25,338
Guidance notes
SFRS(I) 1-23.26(b) Borrowing costs included in the cost of qualifying assets during the year arose on the general borrowing pool and are
calculated by applying a capitalisation rate of 7% to expenditure on such assets.

Source

December 31, 2018
SFRS(I) 1-12.79 47. Income tax expense
Income tax recognised in profit or loss

Group 2018 2017 2018 2017 2018 2017
$’000 $’000 $’000 $’000 $’000 $’000
SFRS(I) 1-12.79 Tax expense (income) comprises:
SFRS(I) 1-12.80(a) Current tax expense (income) 11,403 2,408 1,673 252 13,076 2,660
SFRS(I) 1-12.80(b) Adjustments recognised in the

current year in relation to the
current tax prior years 584 197 66 35 650 232
SFRS(I) 1-12.80(c) Deferred tax expense (income)

relating to the origination and
reversal of temporary differences 4,255 1,205 78 102 4,333 1,307
Deferred tax reclassified from equity

to income - - - - - -
16,242 3,810 1,817 389 18,059 4,199
SFRS(I) 1-12.80(d) Effect of changes in tax rates and laws (76) - - - (76) -
SFRS(I) 1-12.80(g) Write-downs (reversal of previous

write-downs) of deferred tax assets - - - - - -
SFRS(I) 1-12.80(h) Tax expense (income) associated with

changes in accounting policies that
cannot be accounted for
retrospectively - - - - - -
Total tax expense (income) 16,166 3,810 1,817 389 17,983 4,199
Guidance notes
193
Source

December 31, 2018
SFRS(I) 1-12.81(c) Domestic income tax is calculated at 17% (2017: 17%) of the estimated assessable profit for the year. Taxation for other
jurisdictions is calculated at the rates prevailing in the relevant jurisdictions.
SFRS(I) 1-12.81(c) The total charge for the year can be reconciled to the accounting profit as follows:
Group
2018 2017
$’000 $’000
Profit before tax:
Continuing operations 105,265 19,870
Discontinued operation 12,493 4,560
117,758 24,430
SFRS(I) 1-12.81(c) Numerical reconciliation of income tax expense
Group
2018 2017 2018 2017
$’000 % $’000 %
Income tax expense calculated at 17% (2017: 17%) 20,019 17 4,153 17

Effect of revenue that is exempt from taxation (736) (0.6) - -
Effect of expenses that are not deductible in determining
taxable profit - - 51 0.2
Effect of tax concessions (research and development and other
allowances) - - - -
Tax effect of share of results of associates and joint venture (216) (0.2) (258) (1.1)
Impairment losses on goodwill that are not deductible 79 0.1 - -
Effect of changes in expected manner of recovery of assets - - - -
Effect of revaluations of assets for taxation purpose - - - -
Effect of unused tax losses and tax offsets not recognised as
deferred tax assets - - - -
Effect of previously unrecognised and unused tax losses and
tax offsets now recognised as deferred tax assets (1,751) (1.5) - -
Effect of different tax rates of subsidiaries operating in other
jurisdictions 14 0.0 21 0.1
Effect on deferred tax balances due to the change in income tax
rate from [xx]% to 17% (76) - - -
Effect of changes in tax laws on deferred tax balances - - - -
17,333 14.8 3,967 16.2
Adjustments recognised in the current year in relation to the

current tax of prior years 650 0.6 232 0.9
Income tax expense recognised in profit or loss 17,983 15.4 4,199 17.1

Source

December 31, 2018
Income tax recognised directly in equity
Group
2018 2017
$’000 $’000
SFRS(I) 1-12.81(a) Current tax
Share-issue expenses - -
Share buy-back expenses - -
- -
SFRS(I) 1-12.81(a) Deferred tax

Initial recognition of the equity component of compound financial instruments 174 -
Share-issue and buy-back expenses deductible over 5 years - -
Excess of tax deductions related to share-based payments - -
Others [describe] - -
174 -
Total deferred tax recognised directly in equity 174 -
Guidance notes
SFRS(I) 1-12.81(ab) Income tax relating to each component of other comprehensive income
SFRS(I) 1-1.90
Group
2018 2017
$’000 $’000
Deferred tax
Property revaluations 3,692 (320)
Translation of foreign operations - -
Revaluations of financial instruments treated as cash flow hedges - -
Revaluations of financial assets classified as at FVTOCI 29 24
Actuarial movements on defined benefit plans - -
3,721 (296)
Reclassifications from equity to profit or loss:

Reclassification to profit or loss from equity on cash flow hedges - -
Reclassification to profit or loss on disposal of a foreign operations - -
- -
Total deferred tax on components of other comprehensive income 3,721 (296)
Guidance notes
195
Source

December 31, 2018
48. Discontinued operation
SFRS(I) 5.30 On May 14, 2018, the group entered into a sale agreement to dispose of GAAP Playsystems Limited, which carried out all of
SFRS(I) 5.41 the group’s electronic toys manufacturing activities. The disposal was effected in order to generate cash flow for the
expansion of the group’s other businesses. The disposal was completed on November 30, 2018, on which date control of
GAAP Playsystems Limited passed to the acquirer.
The profit for the year from the discontinued operation is analysed as follows:
Group
2018 2017
$’000 $’000
Profit of electronic toys operation for the year 2,183 4,171

Gain on disposal of electronic toys operation (Note 52) 8,493 -
10,676 4,171
SFRS(I) 5.33(b) The results of the electronic toys operation for the period from January 1, 2018 to November 30, 2018 are as follows:
SFRS(I) 5.34
Group
2018 2017
$’000 $’000
Revenue 159,438 141,203

Cost of sales (97,431) (79,923)
Distribution costs (19,447) (16,458)
Administrative expenses (38,067) (39,432)
Finance costs (493) (830)
Profit before tax 4,000 4,560
SFRS(I) 1-12.81(h) Income tax expense (1,817) (389)
SFRS(I) 5.33(d) Profit for the year (attributable to owners of the company) 2,183 4,171
SFRS(I) 5.33(c) During the year, GAAP Playsystems Limited contributed $4.8 million (2017: $4.25 million) to the group’s net operating cash
SFRS(I) 5.34 flows, paid $1.37 million (2017: $2.89 million) in respect of investing activities and paid $0.9 million (2017: $3.71 million)
in respect of financing activities.
The carrying amounts of the assets and liabilities of GAAP Playsystems Limited at the date of disposal are disclosed in
Note 52.

Source

December 31, 2018
49. Profit for the year
Profit for the year has been arrived at after charging (crediting):

Group 2018 2017 2018 2017 2018 2017
$’000 $’000 $’000 $’000 $’000 $’000
Depreciation and amortisation:
Depreciation of property, plant and

equipment 28,097 16,392 1,420 2,650 29,517 19,042
SFRS(I) 1-36.126(a) Impairment of property, plant and

equipment 4,130 - - - 4,130 -
SFRS(I) 1-38.118(d) Amortisation of intangible assets 2,614 846 - - 2,614 846
SFRS(I) 1-36.126(a) Impairment of goodwill 463 - - - 463 -
SFRS(I) 1-1.104 Total depreciation and amortisation 35,304 17,238 1,420 2,650 36,724 19,888
Directors’ remuneration:
- of the company 1,232 1,089 - - 1,232 1,089
- of the subsidiaries 726 655 121 135 847 790
Total directors’ remuneration 1,958 1,744 121 135 2,079 1,879
Employee benefits expenses

(including directors’ remuneration)
SFRS(I) 2.50 Share-based payments

SFRS(I) 2.51(a) Equity settled 2,740 1,092 120 110 2,860 1,202
SFRS(I) 2.51(a) Cash settled 3,059 3,431 105 85 3,164 3,516
SFRS(I) 1-19.46 Defined contribution plans 8,200 5,760 1,600 1,540 9,800 7,300
Defined benefit plans 7,686 6,215 2,550 2,330 10,236 8,545
Others 192,325 167,804 25,794 22,841 218,119 190,645
SFRS(I) 1-1.104 Total employee benefits expenses 214,010 184,302 30,169 26,906 244,179 211,208
197
Source

December 31, 2018

Group 2018 2017 2018 2017 2018 2017
$’000 $’000 $’000 $’000 $’000 $’000
Impairment loss on financial assets
SFRS(I) 15.113(b) Impairment loss (reversed)

recognised on trade receivables and
contract assets 33 253 - - 33 253
SFRS(I) 7.20(a)(viii) Impairment loss on debt investments
classified as at FVTOCI - - - - - -
Total impairment loss (reversed) on
financial assets 33 253 - - 33 253
SFRS(I) 1-21.52(a) Net foreign exchange losses (gains) 392 196 (98) (109) 294 87
SFRS(I) 1-38.126 Research and development costs 4,800 6,560 - - 4,800 6,560
SFRS(I) 1-20.39(b) Government grants (398) (473) - - (398) (473)
SFRS(I) 1-2.36(d) Cost of inventories recognised as expense 697,027 552,343 97,431 79,923 794,458 632,266
LM 1207(6)(a) Audit fees:

- paid to auditors of the company 110 100 - - 110 100
- paid to other auditors 70 60 - - 70 60
Total audit fees 180 160 - - 180 160
LM 1207(6)(a) Non-audit fees:

- paid to auditors of the company 20 20 - - 20 20
- paid to other auditors 40 35 - 5 40 40
Total non-audit fees 60 55 - 5 60 60
Aggregate amount of fees paid to auditors 240 215 - 5 240 220

Source

December 31, 2018
Guidance notes
1. Additional disclosure if analysis of expenses recognised in profit or loss is by function

Separate disclosure of employee benefit expense and depreciation is required where the analysis of expenses recognised
in profit or loss are presented by function.
LM 1207(6) 2. Audit fees disclosure

Where a company is listed, the disclosures relating to audit fees are required to be made in the annual report i.e. not
necessarily in the financial statements.
The specific disclosures required for listed companies are:
LM 1207(6)(a) a. The aggregate amount of fees paid to auditors, broken down into audit and non-audit services. If there are no audit
or non-audit fees paid, to make an appropriate negative statement.
LM 1207(6)(b) b. Confirmation by the audit committee that it has undertaken a review of all non-audit services provided by the auditors
and they would not, in the audit committee’s opinion, affect the independence of the auditors.
LM 1207(6)(c) c. A statement that the issuer complies with Rules 712, and Rule 715 or 716 in relation to appointment of its auditing
firms.
SFRS(I) 1-1.97 Costs of $14.17 million have been recognised during the year in respect of rectification work to be carried out on goods
supplied to one of the group’s major customers, which have been included in [cost of sales/cost of inventories and employee
benefits expense]. The amount represents the estimated cost of work to be carried out in accordance with an agreed schedule
up to 2018. $8.11 million has been expended in the current year, with a provision of $6.06 million (2017: $Nil) carried
forward to meet anticipated expenditure in 2019 and 2020 (Note 32).
199
Source

December 31, 2018
50. Dividends
SFRS(I) 1-1.107 On May 23, 2018, a dividend of 4.2 cents per share (total dividend $5.04 million) was paid to shareholders. In May 2017,
the dividend paid was 6.7 cents per share (total dividend $8.04 million).
SFRS(I) 1-1.137(a) In respect of the current year, the directors propose that a dividend of 9.8 cents per share will be paid to shareholders on
SFRS(I) 1-10.13 May 25, 2019. This dividend is subject to approval by shareholders at the Annual General Meeting and has not been included
as a liability in these financial statements. The proposed dividend is payable to all shareholders on the Register of Members
on April 21, 2019. The total estimated dividend to be paid is $11.9 million.
51. Earnings per share
Guidance notes – Earnings per share
SFRS(I) 1-33 Earnings Per Share, requires that earnings per share (EPS) information to be presented by entities whose
ordinary shares or potential ordinary shares are publicly traded and by entities that are in the process of issuing ordinary
shares or potential ordinary shares in public securities markets. If other entities choose to disclose EPS information in
financial statements that comply with SFRS(I)s, such disclosures should comply fully with the requirements of SFRS(I) 1-
33.
SFRS(I) 1-33.12 requires that basic and diluted earnings per share be computed based on the amounts attributable to
ordinary owners of the parent entity in respect of (a) profit or loss from continuing operations attributable to the parent
entity; and (b) profit or loss attributable to the parent entity.
Voluntary “per-share” disclosures

Entities may voluntarily disclose per share amounts for other components of total comprehensive income or separate
income statement, subject to the requirements of paragraphs 73 and 73A of SFRS(I) 1-33 i.e. provided that:
 Such amounts are calculated using the weighted average number of ordinary shares determined in accordance with
SFRS(I) 1-33;
 Basic and diluted amounts per share relating to such a component are disclosed with equal prominence and
presented in the notes; and
 The entity discloses the basis on which the numerator(s) is (are) determined, including whether amounts per share
are before tax or after tax.
If a component of the statement of comprehensive income (or separate income statement) is used that is not reported as
a line item in the statement of comprehensive income (or separate income statement), reconciliation shall be provided
between the component used and a line item that is reported in the statement of comprehensive income (or separate
income statement).

Source

December 31, 2018
From continuing and discontinued operations
The calculation of the basic and diluted earnings per share attributable to the ordinary owners of the company is based on
the following data:
SFRS(I) 1-33.70(a) Earnings 2018 2017

$’000 $’000
Earnings for the purpose of basic earnings per share

(profit for the year attributable to owners of the company) 99,166 20,134
Effect of dilutive potential ordinary shares:
Interest on convertible loan notes (net of tax) 1,040 -
Earnings for the purpose of diluted earnings per share 100,206 20,134
SFRS(I) 1-33.70(b) Number of shares 2018 2017

$’000 $’000
Weighted average number of ordinary shares for the purposes of basic earnings per share 120,825 120,000
Share options 2,860 1,872
Convertible loan notes 45,000 -
Weight average number of ordinary shares for the purposes of diluted earnings per share 168,685 121,872
From continuing operations
The calculation of the basic and diluted earnings per share from continuing operations attributable to the ordinary owners
of the company is based on the following data.
SFRS(I) 1-33.70(a) Earnings figures are calculated as follows:
2018 2017
$’000 $’000
Profit for the year attributable to owners of the company 99,166 20,134
Less:
Profit for the year from discontinued operation (10,676) (4,171)
Earnings for the purposes of basic earnings per share from continuing operations 88,490 15,963
Interest on convertible loan notes (net of tax) 1,040 -
Earnings for the purposes of diluted earnings per share from continuing operations 89,530 15,963
SFRS(I) 1-33.70(b) The denominators used are the same as those detailed above for both basic and diluted earnings per share.
SFRS(I) 1-33.68 From discontinued operation
Basic earnings per share for the discontinued operation is 8.8 cents per share (2017: 3.5 cents per share) and diluted
earnings per share for the discontinued operation is 6.3 cents per share (2017: 3.4 cents per share), based on the profit for
the year from the discontinued operation of $10.7 million (2017: $4.2 million) and the denominators detailed above for both
basic and diluted earnings per share.
201
Source

December 31, 2018
Impact of changes in accounting policies (other than arising from first-time adoption)
SFRS(I) 1-8.28(f)(ii) The following table summarises that effect on both basic and diluted earnings per share, arising from changes in accounting
policies:
Increase (decrease) in
profit for the year Increase (decrease) Increase (decrease) in
attributable to the in basic earnings diluted earnings
owners of the company per share per share
2018 2017 2018 2017 2018 2017
Cents per Cents per Cents per Cents per
$’000 $’000 share share share share
Changes in accounting policies

relating to:
- Application of the amendments
to XXX xx xx xx xx xx xx
- Others (Please specify) xx xx xx xx xx xx
xx xx xx xx xx xx

Source

December 31, 2018
52. Disposal of subsidiary
SFRS(I) 1-7.40(d) As referred to in Note 48, on November 30, 2018, the group discontinued its electronic toys operation at the time of the
disposal of its subsidiary, GAAP Playsystems Limited.
Details of the disposal are as follows:
Carrying amounts of net assets over which control was lost

December 31,
2018
$’000
Non-current asset
Property, plant and equipment 10,125
Current assets
Inventories 11,976
Trade receivables 13,549
Cash and cash equivalents 4,382
Total current assets 29,907
Non-current liabilities
Retirement benefit obligation (4,932)
Deferred tax liability (255)
Total non-current liabilities (5,187)
Current liabilities
Income tax payable (1,854)
Trade payables (2,321)
Bank loans (6,398)
Total current liabilities (10,573)
Attributable goodwill 1,673
Net assets derecognised 25,945
SFRS(I) 1-7.40(a) Consideration received:
SFRS(I) 1-7.40(b) Cash 10,899

Deferred consideration 23,539
Total consideration received 34,438
203
Source

December 31, 2018
2018
$’000
Gain on disposal
Consideration received 34,438
Net assets derecognised (25,945)
Non-controlling interest derecognised -
Fair value of retained interest -
Cumulative gain (loss) on financial assets at FVTOCI -
reclassified from equity on loss of control of subsidiary
Cumulative exchange differences in respect of the net assets of the subsidiary -
reclassified from equity on loss of control of subsidiary
Gain on disposal 8,493
The gain on disposal of the subsidiary is recorded as part of profit for the year from discontinued operation in the statement
of profit or loss and other comprehensive income.
Guidance notes
2018
$’000
SFRS(I) 1-7.40(c) Net cash inflow arising on disposal
Cash consideration received 10,899
Cash and cash equivalents disposed of (4,382)
6,517
The deferred consideration will be settled in cash by the purchaser on or before May 30, 2019.
The impact of GAAP Playsystems Limited on the group’s results and cash flows in the current and prior periods is disclosed
in Note 48.

Source

December 31, 2018
53. Acquisition of subsidiary
Guidance notes
SFRS(I) 3.B66 The disclosures illustrated here that are required by SFRS(I) 3.B64 are also required for business combinations after the
end of the reporting period but before the financial statements are authorised for issue unless the initial accounting for
the acquisition is incomplete at the time the financial statements are authorised for issue. In such circumstances,
the entity is required to describe which disclosures could not be made and the reasons why they could not be made.
SFRS(I) 3.B64(a)- On August 1, 2018, the group acquired 80% of the issued share capital of Huiji Electronic Systems (China) Limited (“HESL”)
(d) for cash consideration of $8.1 million. This transaction has been accounted for by the acquisition method of accounting.
HESL is an entity incorporated in the People’s Republic of China with its principal activity being the sale and manufacture of
electronic equipment. The group acquired HESL for various reasons, the primary reason being to gain access to HESL’s
already established manufacturing facilities and assembled workforce (instead of setting up new facilities which may take
time to reach optimum production efficiency levels).
SFRS(I) 3.B64(f) 53.1 Consideration transferred (at acquisition date fair values)
Huiji Electronic Systems (China) Limited Total

$’000
Cash 7,942
Contingent consideration arrangement (i) 75
Effect of settlement of legal claim against HESL (ii) 40
SFRS(I) 1-7.40(a) Total 8,057
SFRS(I) 3.B64(g) (i) The contingent consideration requires the group to pay the vendors an additional $3,000,000 if HESL’s profit before
interest and tax (PBIT) in each of the years 2018 and 2019 exceeds $5,000,000. HESL’s PBIT for the past three years
has been $2,700,000 on average and the management does not consider it probable that this payment will be required.
$75,000 represents the estimated fair value of this obligation estimated based on an income approach and discounted
at 13% per annum.
SFRS(I) 3.B64(l) (ii) Prior to the acquisition of HESL, the group was pursuing a legal claim against that company in respect of damage to
goods in transit to a customer. Although the group was confident of recovery, this amount has not previously been
recognised as an asset. In line with the requirements of SFRS(I) 3, the group has recognised the effective settlement of
this legal claim on the acquisition of HESL by recognising $40,000 (being the estimated fair value of the claim) as a gain
in the statement of profit or loss and other comprehensive income within the “other gains and losses” line item. This has
resulted in a corresponding increase in the consideration transferred.
The fair value of the gain was determined after considering estimations of probabilities of outcomes of the lawsuit,
and associated legal fees.
205
Source

December 31, 2018
Guidance notes – Transactions recognised separately from the acquisition of assets or assumption of liabilities
in a business combination
SFRS(I) 3.51 The illustrative disclosures above are on a settlement of pre-existing non-contractual relationship between acquirer and
acquiree, and is an example of a transaction to be recognised separately from the acquisition of assets or assumption of
liabilities in a business combination.
A transaction entered into by or on behalf of the acquirer or primarily for the benefit of the acquirer or the combined entity,
rather than primarily for the benefit of the acquiree (or its former owners) before the combination, is likely to be a separate
transaction. The following are examples of separate transactions that are not to be included in applying the acquisition
method:
a. A transaction that in effect settles pre-existing relationships between the acquirer and acquiree;
b. A transaction that remunerates employees or former owners of the acquiree for future services; and
c. A transaction that reimburses the acquiree or its former owners for paying the acquirer’s acquisition- related costs.
SFRS(I) 3.B50–B62 provide related application guidance.
SFRS(I) 3.B64(m) Acquisition-related costs amounting to $145,000 have been excluded from the consideration transferred and have been
recognised as an expense in the period, within the “other operating expenses” line item in the statement of profit or loss
and other comprehensive income.
SFRS(I) 3.B64(i) 53.2 Assets acquired and liabilities assumed at the date of acquisition
SFRS(I) 1-7.40(d) Huiji Electronic Systems (China) Limited Total

$’000
Current assets
Cash and cash equivalents 4,272
Trade and other receivables 12,520
Inventories 2,854
Non-current assets
Trademarks 870
Plant and equipment 8,907
Deferred tax asset 351
Current liabilities
Trade and other payables (21,268)
Deferred tax liabilities (150)
Retirement benefit obligation (2,436)
Contingent liabilities (21)
Net assets acquired and liabilities assumed 5,899

Source

December 31, 2018
SFRS(I) 3.B64(j) Guidance notes – Contingent liability assumed in a business combination
If a contingent liability is not recognised because its fair value cannot be measured reliably, the acquirer shall disclose the
information required by SFRS(I) 1-37.86 (See Note 55), and the reasons why the liability cannot be measured reliably.
SFRS(I) 1-37.86 requires a brief description of the nature of the contingent liability and, where practicable:
a. An estimate of its financial effect;

b. An indication of the uncertainties relating to the amount or timing of any outflow; and
c. The possibility of any reimbursement.
SFRS(I) 3.B64(h) The receivables acquired (which principally comprised trade receivables) in these transactions with a fair value of
$12,520,000 had gross contractual amounts of $13,000,000. The best estimate at acquisition date of the contractual cash
flows not expected to be collected is $480,000.
SFRS(I) 3.B64(h) Guidance notes – Acquired receivables
The disclosures above in relation to acquired receivables should be provided by major class of receivables e.g. loans, direct
finance leases and any other class of receivables.
53.3 Non-controlling interest
SFRS(I) 3.B64(o) The non-controlling interest (20%) in HESL recognised at the acquisition date was measured by reference to the fair value
of the non-controlling interest and amounted to $1,500,000. This fair value was estimated by applying an income approach.
The following were the key model inputs used in determining the fair value:
 Assumed discount rate range of 18% to 22%;

 Assumed long-term sustainable growth rates of 3% to 5%; and
 Assumed adjustments because of the lack of control or lack of marketability that market participants would consider
when estimating the fair value of the non-controlling interests in HESL.
53.4 Goodwill arising on acquisition
Huiji Electronic Systems (China) Limited Total

$’000
Consideration transferred 8,057

Add: Non-controlling interest 1,500
Less: Fair value of identifiable net assets acquired (5,899)
Goodwill arising on acquisition 3,658
207
Source

December 31, 2018
SFRS(I) 3.B64(e) Goodwill arose in the acquisition of HESL because the cost of the combination included a control premium. In addition,
the consideration paid for the combination effectively included amounts in relation to the benefit of expected synergies,
revenue growth, future market development and the assembled workforce of HESL. These benefits are not recognised
separately from goodwill because they do not meet the recognition criteria for identifiable intangible assets.
The group also acquired the customer lists and customer relationships of HESL as part of the acquisition. These assets could
not be separately recognised from goodwill because they are not capable of being separated from the group and sold,
transferred, licensed, rented or exchanged, either individually or together with any related contracts. Consequently, they
are subsumed into goodwill.
SFRS(I) 3.B64(k) None of the goodwill arising on these acquisitions is expected to be deductible for tax purposes.
Guidance notes – Bargain purchase
SFRS(I) 3.B64(n) In a bargain purchase the acquirer is required to disclose:
 The amount of any gain recognised and the line item in the statement of profit or loss and other comprehensive
income in which the gain is recognised; and
 A description of the reasons why the transaction resulted in a gain.
SFRS(I) 3 does not specify that the amount of the gain recognised must be shown as a separate line item. It could be
shown as part of “other gains and losses”. However, the requirements of SFRS(I) 3.B64(n) ensure that the amount is
separately disclosed in the notes.
53.5 Net cash outflow on acquisition of subsidiaries
2018
$’000
SFRS(I) 1-7.40(b) Consideration paid in cash 7,942

SFRS(I) 1-7.40(c) Less: Cash and cash equivalent balances acquired (4,272)
3,670
53.6 Impact of acquisitions on the results of the group
SFRS(I) 3.B64(q) Included in the profit for the year is $0.5 million attributable to the additional business generated by HESL. Revenue for the
period from HESL amounted $6.9 million.
Had the business combination during the year been effected at January 1, 2018, the revenue of the group from continuing
operations would have been $1.1 billion, and the profit for the year from continuing operations would have been $106.2
million.
Guidance notes – Impact of acquisitions on the results of the group
If disclosure of any of the information required by SFRS(I) 3.B64(q) above is impracticable, the acquirer should disclose
that fact and explain why the disclosure is impracticable.

Source

December 31, 2018
SFRS(I) 3.61 The management of the group considers these “pro-forma” numbers to represent an approximate measure of the
performance of the combined group on an annualised basis and to provide a reference point for comparison in future periods.
In determining the “pro-forma” revenue and profit of the group had HESL been acquired at the beginning of the current
reporting period, the management has:
 Calculated depreciation of plant and equipment acquired on the basis of the fair values arising in the initial accounting
for the business combination rather than the carrying amounts recognised in the pre-acquisition financial statements;
 Based borrowing costs on the funding levels, credit ratings and debt/equity position of the group after the business
combination; and
 Excluded takeover defense costs of the acquiree as a one-off pre-acquisition transaction.
Guidance notes – Other disclosures
SFRS(I) 3.B64(p) 1. Acquisitions achieved in stages

In a business combination achieved in stages, the acquirer is required to disclose:
 The acquisition-date fair value of the equity interest in the acquiree held by the acquirer immediately before the
acquisition date; and
 The amount of any gain or loss recognised as a result of remeasuring to fair value the equity interest in the acquiree
held by the acquirer before the business combination and the line item in the statement of profit or loss and other
comprehensive income in which that gain or loss is recognised.
The intended scope of the second bullet point is not completely clear. It will certainly capture gains or losses that arise
where the previous equity interest was not recognised at fair value, e.g. an interest in an associate to which equity
accounting has been applied. But it would appear appropriate also to disclose any gain or loss in respect of the previous
equity interest that is reclassified from other comprehensive income to the statement of profit or loss and other
comprehensive income, e.g. because the investment was classified as at fair value through other comprehensive income.
SFRS(I) 3.B67(a) 2. Initial accounting for a business combination determined provisionally

If the initial accounting for a business combination is incomplete for particular assets, liabilities, non-controlling interests
or items of consideration and the amounts recognised in the financial statements for the business combination thus have
been determined only provisionally, the acquirer shall disclose the following information:
(i) The reasons why the initial accounting for the business combination is incomplete;
(ii) The assets, liabilities, equity interests or items of consideration for which the initial accounting is incomplete; and
(iii) The nature and amount of any measurement period adjustments recognised during the reporting period.
An example of such a disclosure may be as follows:
“The initial accounting for the acquisition of Huiji Electronic Systems (China) Limited has only been provisionally
determined as the acquisition occurred close to the end of the reporting period. At the date of finalisation of these financial
statements, the necessary market valuations and other calculations for the items listed below had not been finalised and
they have therefore only been provisionally determined based on the management’s best estimate of the likely values.
[List out assets, liabilities, non-controlling interests or items of consideration where fair values are provisionally
determined]
Disclosures are made for each material business combination or in the aggregate for individually immaterial business
combinations that are material collectively.
209
Source

December 31, 2018
SFRS(I) 1-7.43 54. Non-cash transactions
Additions to plant and equipment during the year amounting to $1.56 million (2017: $0.8 million) were financed by new
finance leases.
SFRS(I) 1-37.86 55. Contingent liabilities
During the year, a customer of the group instigated proceedings for alleged defects in an electronic product which, it is
claimed, were the cause of a major fire in the customer’s premises in February 2018. Total losses to the customer have
been estimated at $29.8 million and this amount is being claimed from the group.
The group’s lawyers have advised that they do not consider that the claim has merit, and they have recommended that it
be contested. No provision has been recognised in these financial statements as the group’s management does not consider
that there is any probable loss.
The group acquired $0.02 million of contingent liabilities at the date of acquisition of Huiji Electronic Systems (China) Limited
(Note 53.2). These were recognised as provisions, and were settled prior to the end of the reporting period (Note 32).
SFRS(I) 12.23 Contingent liabilities arising from interest in a joint venture
Group
2018 2017 2017
$’000 $’000 $’000
Guarantees given to banks in respect of bank facilities utilised by

JV Electronics Limited 22,981 23,023 23,848
The amount disclosed represents the aggregate amount of the contingent liabilities for the group as an investor is liable.
The extent to which an outflow of funds will be required is dependent on the future operations of the joint ventures being
more or less favourable than currently expected. The group is not contingently liable for the liabilities of the other venturers
in its joint ventures.

Source

December 31, 2018
SFRS(I) 1-16.74(c) 56. Commitments
Group
2018 2017 2017
$’000 $’000 $’000
Commitments for the acquisition of property, plant and equipment 9,965 20,066 32,777
SFRS(I) 1-40.75(h) In addition, the group has entered into a contract for the management and maintenance of its investment property for the
next 5 years, which will give rise to an annual charge of $0.12 million.
SFRS(I) 12.23 The group’s share of the capital commitments of its joint venture, JV Electronics Limited, is as follows:
Group
2018 2017 2017
$’000 $’000 $’000
Commitments for the acquisition of property, plant and equipment 928 379 350
57. Operating lease arrangements
The group as lessee

Group
2018 2017
$’000 $’000
SFRS(I) 1-17.35(c) Payment recognised as an expense during the year:
Minimum lease payments under operating leases 297 283

Contingent rentals - -
Sub-lease payments received - -
297 283
SFRS(I) 1-17.35(a) At the end of the reporting period, the group has outstanding commitments under non-cancellable operating leases, which
fall due as follows:
Group
2018 2017 2017
$’000 $’000 $’000
Within one year 309 297 296

In the second to fifth years inclusive 1,420 1,439 1,459
After five years 692 930 770
2,421 2,666 2,525
211
Source

December 31, 2018
Guidance notes
Where applicable:
In respect of non-cancellable operating leases, the following liabilities have been recognised:
Group
2018 2017 2017
$’000 $’000 $’000
Onerous lease contracts:
Current xx xx xx
Non-current xx xx xx
Lease incentives:
Current xx xx xx
Non-current xx xx xx
xx xx xx
SFRS(I) 1-17.35(d) Operating lease payments represent rentals payable by the group for certain of its office properties. Leases are negotiated
SFRS(I) 7.7 for an average term of seven years and rentals are fixed for an average of three years.
SFRS(I) 1- The group as lessor

17.56(b),(c)
The group rents out its investment properties in Singapore, U.S.A. and the People’s Republic of China under operating leases.
Property rental income earned during the year was $0.6 million (2017: $0.7 million). The properties are managed and
maintained by independent property managers at an annual cost of $0.12 million per year. In addition, legal fees of $0.01
million (2017: $0.01 million) which arose in negotiating operating leases for a substantial proportion of the group’s
investment property portfolio in 2011 are being expensed over the lease terms of the relevant properties.
Certain of the group’s investment properties, with a carrying amount of $3.89 million, have been disposed of since the end
of the reporting period. The remaining properties are expected to generate rental yields of 10% on an ongoing basis. All of
the properties held have committed tenants for the next seven years.
SFRS(I) 1-17.56(a) At the end of the reporting period, the group has contracted with tenants for the following future minimum lease payments:
Group
2018 2017 2017
$’000 $’000 $’000
Within one year 810 602 607

In the second to fifth years inclusive 3,179 3,240 3,256
After five years 1,539 2,288 3,345
5,528 6,130 7,208

Source

December 31, 2018
58. Adoption of a new financial reporting framework
SFRS(I) 1.23 The group and the company adopted the new financial reporting framework – Singapore Financial Reporting Standards
(International) (“SFRS(I)”) for the first time for financial year ended December 31, 2018 and SFRS(I) 1 First-time Adoption
of Singapore Financial Reporting Standards (International) has been applied in the first set of SFRS(I) financial statements.
SFRS(I) is identical to the International Financial Reporting Standards (“IFRS”) as issued by the International Accounting
Standards Board (IASB).
Guidance notes
SFRS(I) 1.7 First-time adopters of SFRS(I)s are required to use the same accounting policies in their opening SFRS(I) statement of
SFRS(I) 1.8 financial position (January 1, 2017) and throughout all periods presented in their first SFRS(I) financial statements (periods
up till December 31, 2018). Those accounting policies will comply with each SFRS(I) effective at the end of the first SFRS(I)
reporting period (December 31, 2018), except as specified by SFRS(I) 1’s exceptions and voluntary exemptions from
retrospective application. Entities are not allowed to apply different versions of SFRS(I) that were effective at earlier dates,
but they may apply a new SFRS(I) that is not yet mandatory if that SFRS(I) permits early application.
SFRS(I) 1.23 As a first-time adopter of SFRS(I), the group and the company have applied retrospectively, accounting policies based on
each SFRS(I) effective as at end of the first SFRS(I) reporting period (December 31, 2018), except for areas of exceptions
and optional exemptions set out in SFRS(I) 1. In the first set of SFRS(I) financial statements for the financial year ended
December 31, 2018, an additional opening statement of financial position as at date of transition (January 1, 2017) is
presented, together with related notes. Reconciliation statements from previously reported FRS amounts and explanatory
notes on transition adjustments are presented for equity as at date of transition (January 1, 2017) and as at end of last
financial period under FRS (December 31, 2017), and for total comprehensive income and cash flows reported for the last
financial period under FRS (for the year ended December 31, 2017). Additional disclosures are made for specific transition
adjustments if applicable.
There is no change to the group’s and the company’s previous accounting policies under FRS or material adjustments on the
initial transition to the new framework, other than those arising from the application of SFRS(I) 9 and SFRS(I) 15 [list other
new SFRS(I) pronouncements, if applicable] which are effective at the same time, [and the election of certain transition
options available under SFRS(I) 1].
213
Source

December 31, 2018
Management has elected the following transition exemption:
SFRS(I) 1.C1 • SFRS(I) 3 Business Combinations has not been applied to acquisitions of subsidiaries that are considered businesses
SFRS(I) 1.C4(b)-(f) under SFRS(I) that occurred before January 1, 2017. The FRS carrying amounts of assets and liabilities determined in
that business combination, that are required to be recognised under SFRS(I), are the deemed cost at the date of the
acquisition. After the date of the acquisition, measurement is in accordance with SFRS(I). Assets and liabilities that do
not qualify for recognition under SFRS(I) are excluded from the opening SFRS(I) statement of financial position. The
group did not recognise or exclude any previously recognised amounts as a result of SFRS(I) recognition requirements.
SFRS(I) 1.C4(g)-(h) SFRS(I) 1 also requires that the FRS carrying amount of goodwill must be used in the opening SFRS(I) statement of
financial position (apart from adjustments for goodwill impairment and recognition or derecognition of intangible assets).
In accordance with SFRS(I) 1, the group has tested goodwill for impairment at the date of transition to SFRS(I). No
goodwill impairment was deemed necessary at January 1, 2017.
SFRS(I) 1.D34 • As permitted under SFRS(I) 1, the transaction price allocated to (partially) unsatisfied performance obligations as of
December 31, 2017 is not disclosed using the transition provisions of SFRS(I) 15.
Guidance notes
SFRS(I) 1.E1 SFRS(I) 1.E1 allows an entity to apply the exemption given in SFRS(I) 9 to not restate comparatives in the year of initial
application, in which case the cumulative difference in loss allowance to be recognised in terms of SFRS(I) 9 are charged
against opening retained earnings in the period in which the entity first applies SFRS(I) 9. Nevertheless, restatement of
comparatives is permitted if and only if it is possible without the use of hindsight.
SFRS(I) 1.E2 An entity that chooses to present comparative information that does not comply with SFRS(I) 7 and SFRS(I) 9 in its first
year of transition shall:
(a) Apply the requirements of its previous GAAP in place of the requirements of SFRS(I) 9 to comparative information
about items within the scope of SFRS(I) 9.
(b) Disclose this fact together with the basis used to prepare this information.
(c) Treat any adjustment between the statement of financial position at the comparative period’s reporting date (i.e. the
statement of financial position that includes comparative information under previous GAAP) and the statement of
financial position at the start of the first SFRS(I) reporting period (i.e. the first period that includes information that
complies with SFRS(I) 7 and SFRS(I) 9) as arising from a change in accounting policy and give the disclosures
required by SFRS(I) 1-8.
(d) Provide additional disclosures when compliance with the specific requirements in SFRS(I)s is insufficient to enable
users to understand the impact of particular transactions, other events and conditions on the entity’s financial position
and financial performance.

Source

December 31, 2018
Guidance notes – examples of other exemptions available under SFRS(I) 1

Where applicable:
SFRS(I) 1.C2  The group has not applied SFRS(I) 1-21 retrospectively to fair value adjustments and goodwill from certain business
combinations that occurred before the date of transition to SFRS(I). Such fair value adjustments and goodwill are
treated as assets and liabilities of the parent rather than as assets and liabilities of the acquiree.
If the entity elects the above exemption, the accounting policy on foreign currency transactions and translation
should be tailored accordingly. If applicable, the following is an illustrative disclosure of the accounting policy in Note
2:
Any goodwill arising on the acquisition of a foreign operation subsequent to <date> and any fair value adjustments
to the carrying amounts of assets and liabilities arising on the acquisition are treated as assets and liabilities of the
foreign operation and translated at the spot rate of exchange at the reporting date.
Prior to <date>, the group treated certain goodwill and any fair value adjustments to the carrying amounts of assets
and liabilities arising on the acquisition as assets and liabilities of the parent. Therefore, those assets and liabilities
are non-monetary items already expressed in the functional currency of the parent and no further translation
differences occur.
SFRS(I) 1.D5  The group has applied the option to measure certain property, plant and equipment at the date of transition to
SFRS(I) at its fair value and use that fair value as its deemed cost at that date.
SFRS(I) 1.D13  The group has applied the option to reset the cumulative translation differences for all foreign operations to zero at
the date of transition to SFRS(I). The gain or loss on a subsequent disposal of any foreign operation shall exclude
the translation differences that arose before January 1, 2017 and shall include later translation differences.
215
Source

December 31, 2018
SFRS(I) 1.24 Reconciliations of equity and total comprehensive income
The effects of transition to SFRS(I) and the initial application of SFRS(I) 9 and SFRS(I) 15 are presented and explained
below.
Group
(A) Impact on the Statement of Financial Position as at January 1, 2017 (date of transition to SFRS(I))
As previously Application Initial Initial As adjusted

reported of application of application of under
under FRS SFRS(I) 1 (Note) SFRS(I) 9 (Note) SFRS(I) 15 (Note) SFRS(I)
$’000 $’000 $’000 $’000 $’000
Current assets
Cash and cash equivalents 2,374 - - - 2,374
Trade and other receivables 90,258 - (500) (a) (12,175) (f) 77,583
Contract assets - - (122) (a) 12,175 (f) 12,053
Contract costs - - - 110 (h) 110
Finance lease receivables 10,474 - - - 10,474
Held for trading investments 4,254 - (4,254) (b) - -
(FRS 39)
Financial assets at fair value
through profit or loss - - 4,254 (b) - 4,254
Held-to-maturity financial assets 18,577 - (18,577) (c) - -
(FRS 39)
Other financial assets at
amortised cost - - 18,577 (c) - 18,577
Derivative financial instruments 1,433 - - - 1,433
Inventories 77,992 - - - 77,992
Rights to returned goods asset - - - 604 (i) 604
Assets classified as held for sale - - - - -
Non-current assets
Property, plant and equipment 559,739 - - - 559,739
Investment property 11,299 - - - 11,299
Goodwill 2,754 - - - 2,754
Other intangible assets 3,523 - - - 3,523
Subsidiaries - - - - -
Associates 10,999 - - - 10,999
Joint venture 3,420 - - - 3,420
Available-for-sale investments 23,064 - (23,064) (d) - -
(FRS 39)
through other comprehensive
income - - 23,064 (d) - 23,064
through profit or loss 975 - - - 975
(FRS 39)
amortised cost - - 2,669 (c) - 2,669
Derivative financial instruments - - - - -
Deferred tax assets 1,941 - 110 (a) 805 (l) 2,856

Source

December 31, 2018

$’000 $’000 $’000 $’000 $’000
Current liabilities
Bank overdrafts and loans 29,999 - - - 29,999
Trade and other payables 110,210 - - (4,048) (g) 106,162
Contract liabilities - - - 4,048 (g) 6,357
1,943 (j)
366 (k)
Refund liabilities - - - 1,012 (i) 1,012
Finance leases 1,982 - - - 1,982
Provisions 4,385 - - - 4,385
Income tax payable 583 - - - 583
Liabilities directly associated with
assets classified as held for sale - - - - -
Bank loans 325,220 - - - 325,220
Convertible loan notes - - - - -
Other payables - - - - -
Contract liabilities - - - 1,857 (j) 1,857
Provisions - - - - -
Retirement benefit obligations 49,805 - - - 49,805
Share-based payments - - - - -
Deferred tax liabilities 4,350 - - - 4,350
Capital, reserves and

Share capital 152,098 - - - 152,098
Treasury shares - - - - -
Capital reserves - - - - -
Revaluation reserves 38,409 - - - 38,409
Hedging and translation reserves (2,808) - - - (2,808)
Retained earnings 150,278 - (512) (3,659) 146,107
Non-controlling interests 2,479 - - - 2,479
217
Source

December 31, 2018
(B) Impact on the Statement of Financial Position as at December 31, 2017 (end of last period reported under FRS)

$’000 $’000 $’000 $’000 $’000
Current assets
Cash and cash equivalents 1,175 - - 1,175
Trade and other receivables 124,318 - (550) (a) (14,039) (f) 109,729
Contract assets - - (141) (a) 14,039 (f) 13,898
Contract costs - - - 135 (h) 135
Held for trading investments 11,125 - (11,125) (b) - -
(FRS 39)
through profit or loss - - 11,125 (b) - 11,125
(FRS 39)
amortised cost - - 18,605 (c) - 18,605
Derivative financial instruments 2,938 - - - 2,938
Inventories 107,920 - - - 107,920
Rights to returned goods asset - - - 672 (i) 672
Assets classified as held for sale - - - - -
Non-current assets
Property, plant and equipment 566,842 - - - 566,842
Investment property 11,409 - - - 11,409
Goodwill 2,538 - - - 2,538
Other intangible assets 21,294 - - - 21,294
Subsidiaries - - - - -
Associates 12,274 - - - 12,274
Joint venture 3,662 - - - 3,662
Available-for-sale investments 23,215 - (23,215) (d) - -
(FRS 39)
through other comprehensive
income - - 23,215 (d) - 23,215
through profit or loss 1,000 - - - 1,000
(FRS 39)
amortised cost - - 2,694 (c) - 2,694
Deferred tax assets 2,241 - 125 (a) 925 (l) 3,291

Source

December 31, 2018

$’000 $’000 $’000 $’000 $’000
Current liabilities
Bank overdrafts and loans 78,686 - - - 78,686
Trade and other payables 132,258 - - (3,778) (g) 128,480
Contract liabilities - - - 3,778 (g) 6,793
2,544 (j)
471 (k)
Refund liabilities - - - 1,139 (i) 1,139
Provisions 2,065 - - - 2,065
Income tax payable 1,986 - - - 1,986
Liabilities directly associated with
assets classified as held for sale - - - - -
Bank loans 358,617 - - - 358,617
Convertible loan notes - - - - -
Other payables - - - - -
Contract liabilities - - - 1,798 (j) 1,798
Provisions - - - - -
Retirement benefit obligations 38,474 - - - 38,474
Share-based payments 3,516 - - - 3,516
Deferred tax liabilities 5,772 - - - 5,772
Capital, reserves and

Share capital 152,098 - - - 152,098
Treasury shares - - - - -
Capital reserves 1,202 - - - 1,202
Revaluation reserves 35,941 - - - 35,941
Hedging and translation reserves (1,492) - - - (1,492)
Retained earnings 162,987 - (566) (4,220) 158,201
Non-controlling interests 2,576 - - - 2,576
219
Source

December 31, 2018
(C) Impact on the Statement of Profit or Loss and Other Comprehensive Income for the year ended December 31, 2017
(last financial year reported under FRS)

$’000 $’000 $’000 $’000 $’000
Revenue 729,024 - - (127) (i) 728,250
(542) (j)
(105) (k)
Other operating income 6,745 - - - 6,745
Changes in inventories of finished (25) (h)
goods and work in progress 7,682 - - (68) (i) 7,589
Raw materials and consumables used (465,961) - - - (465,961)
Employee benefits expense (188,809) - - - (188,809)
Depreciation and amortisation
expense (17,238) - - - (17,238)
Other operating expenses (29,492) - (69) (a) - (29,561)
Share of profit of associates and
joint venture 1,517 - - - 1,517
Investment revenue 2,270 - - - 2,270
Other gains and losses (171) - - - (171)
Net gain (loss) from the
derecognition of financial assets
measured at amortised cost - - - - -
Net gain (loss) on reclassification
of financial assets from
amortised cost to FVTPL - - - - -
Net gain (loss) on reclassification
of financial assets from
FVTOCI to FVTPL - - - - -
Impairment loss reversed
(recognised) on financial assets (253) - - - (253)
Finance costs (24,508) - - - (24,508)
Income tax expense (3,915) (15) (a) 120 (l) (3,810)
Profit for the year from
continuing operations 16,891 - (84) (747) 16,060
Discontinued operation
Profit for the year from
discontinued operation 4,171 - - - 4,171

Source

December 31, 2018

$’000 $’000 $’000 $’000 $’000
Other comprehensive income
Items that will not be reclassified
subsequently to profit or loss
Net fair value gain on investments
in equity instruments
designated as at FVTOCI - - 47 (e) - 47
Net fair value gain on financial
liabilities designated as at
FVTPL attributable to changes in
credit risk - - - - -
Gain (Loss) on revaluation of
property (2,845) - - - (2,845)
Remeasurement of defined benefit
obligation - - - - -
Net fair value gain on hedging
instruments entered into for
cash flow hedges subject to
basis adjustment - - - - -
Share of other comprehensive
income of associates and
joint venture - - - - -
Income tax relating to component
of other comprehensive income
that will not be reclassified
subsequently 320 - - - 320
Items that may be reclassified

subsequently to profit or loss
Net fair value gain on available-
for-sale financial assets 57 - (57) (e) - -
Net fair value gain on investments
in debt instruments measured
at FVTOCI - - 10 (e) - 10
Net fair value gain on hedging
instruments entered into for
cash flow hedges not subject to
basis adjustment 586 - - - 586
Exchange differences on translation
of foreign operations 730 - - - 730
Share of other comprehensive
income of associates and
joint venture - - - - -
Income tax relating to component
of other comprehensive income
that may be reclassified
subsequently - - - - -
Total comprehensive income

for the year 19,910 - (84) (747) 19,079
221
Source

December 31, 2018
SFRS(I) 1.25 Notes to the reconciliations:
SFRS(I) 9
(a) The application of the SFRS(I) 9 impairment requirements has resulted in additional loss allowance to be recognised.
(b) Held for trading non-derivative financial assets that were measured at fair value through profit or loss (FVTPL) under
FRS 39 continue to be measured as such under SFRS(I) 9.
(c) Financial assets classified as held-to-maturity under FRS 39 that were measured at amortised cost continue to be
measured at amortised cost under SFRS(I) 9 as they are held within a business model to collect contractual cash flows
and these cash flows consist solely of payments of principal and interest on the principal amount outstanding.
(d) The group’s investments in equity instruments (neither held for trading nor a contingent consideration arising from a
business combination) that were previously classified as available-for-sale investments and were measured at fair
value at each reporting date under FRS 39 have been designated as at FVTOCI.
The group’s redeemable notes that were classified as available-for-sale investments under FRS 39 have been classified
as financial assets at fair value through other comprehensive income (FVTOCI) as they are held within a business
model whose objective is both to collect the contractual cash flows and to sell the debt instruments, and they have
contractual cash flows that are solely payments of principal and interest on the principal amount outstanding.
(e) The change in classification of the group’s redeemable notes and investments in equity instruments has resulted in the
fair value gain on available-for-sale investments of $57,000 recognised in other comprehensive income that used to
be subsequently reclassified to profit or loss to be split into two parts: 1) those arising on equity investments designated
as at FVTOCI that will not be subsequently reclassified to profit or loss, and 2) those arising from debt investments
measured at FVTOCI (i.e. the redeemable notes) that may be subsequently reclassified to profit or loss.
SFRS(I) 15
(f) Under SFRS(I) 15, revenue recognised prior to the date on which it is invoiced to the customer is recognised as a
contract asset. This balance was previously recognised as part of trade receivables (amounts due from customers under
construction contracts) and so has been reclassified. There was no impact on the statement of profit or loss as a result
of these reclassifications.
(g) The contract liability balance includes an amount reclassified from amounts due to customers under construction
contracts. This had no impact on the statement of profit or loss.
(h) The group incurs incremental commission fees paid to intermediaries in connection with obtaining residential property
sales contracts. When the group expects that these incremental costs will be recovered, it capitalises these and
amortises them over the period during which the residential property is transferred to the customer. These amounts
were previously expensed as incurred.
(i) Under the group’s standard contract terms for the sale of leisure goods and electronic equipment, customers have a
right of return within 30 days. At the point of sale, a refund liability and a corresponding adjustment to revenue is
recognised for those products expected to be returned. At the same time, the group has a right to recover the product
from customers when they exercise their right of return so consequently recognises a right to returned goods asset
and a corresponding adjustment to the cost of inventories recognised in profit or loss. No adjustments were previously
made for this in the group’s financial statements.

Source

December 31, 2018
(j) The amounts allocated to the maintenance service for electronic equipment increased as a result of the allocation
method required under SFRS(I) 15 (i.e. an allocation based on stand-alone selling price). Such services are paid up-
front as part of the initial sales transaction whereas revenue is recognised proportionally over the three-year period
over which maintenance services are provided to the customer. Based on the previous allocation method, no amounts
were deferred. There has been an adjustment to revenue and recognition of a contract liability to reflect the change in
accounting.
(k) For internet sale of electronic equipment there is a timing difference between payment for the goods and when control
of the goods passes to the customer on delivery. An adjustment to revenue has therefore been made to reflect the
change in accounting. A contract liability has also been recognised for this amount. Previously no amounts were
deferred.
(l) To recognise the impact on deferred income tax of the other adjustments recognised.
Guidance notes –
Reconciliations of equity need to be disclosed for the company if there is impact at the company level. These illustrative
financial statements assume there is no impact at the company level.
SFRS(I) 1.25 (D) Impact on the Statement of Cash Flows for the year ended December 31, 2017 (last financial year reported under FRS)
The transition to SFRS(I) and the initial application of SFRS(I) 9 and SFRS(I) 15 have not had a material impact on the
statement of cash flows.
SFRS(I) 1-10.21 59. Events after the reporting period
On January 18, 2019, the premises of Huiji Electronic Systems (China) Limited were seriously damaged by fire. Insurance
claims are in process, but the cost of refurbishment is currently expected to exceed the amounts that will be reimbursed by
$8.3 million.
223
Source

December 31, 2018
SFRS(I) 1-1.41 60. Reclassifications and comparative figures (other than arising from first-time adoption)
Guidance notes – Reclassification and comparative figures
If information on reclassifications and comparative figures are applicable for the year, the following wordings and format
could be used:
Certain reclassifications have been made to the prior year’s financial statements to enhance comparability with the current
year’s financial statements [state reasons, e.g. following the group and the company’s adoption of the SFRS(I)s that became
effective during the year].
As a result, certain line items have been amended in the statement of financial position, statement of profit or loss and other
comprehensive income, statement of changes in equity and statements of cash flow, and the related notes to the financial
statements. Comparative figures have been adjusted to conform to the current year’s presentation.
The items were reclassified as follows:
Group
Previously After
reported reclassification
2018 2017
$’000 $’000
[To provide details] xx xx
61. Standards issued but not effective
SFRS(I) 1-8.30 At the date of authorisation of these financial statements, the following SFRS(I) pronouncements were issued but not
effective and are expected to have an impact to the group and the company in the periods of their initial application.
Effective for annual periods beginning on or after January 1, 2019

 SFRS(I) 16 Leases
 Amendments to SFRS(I) 9 Financial Instruments: Prepayment Features with Negative Compensation
 Amendments to SFRS(I) 1-19 Employee Benefits: Plan Amendment, Curtailment or Settlement
 Amendments to SFRS(I) 1-28 Investments in Associates and Joint Ventures: Long-term Interests in Associates and Joint
Ventures
 SFRS(I) INT 23 Uncertainty over Income Tax Treatments
 Annual Improvements to SFRS(I)s 2015-2017 Cycle
Effective for annual periods beginning on or after January 1, 2021

 SFRS(I) 17 Insurance Contracts
Effective date is deferred indefinitely

 Amendments to SFRS(I) 10 Consolidated Financial Statements and SFRS(I) 1-28 Investments in Associates and Joint
Ventures: Sale or Contribution of Assets between an Investor and its Associate or Joint Venture

Source

December 31, 2018
Guidance notes
Disclosures of SFRS(I) issued but not effective
It is not required to list all SFRS(I)s, SFRS(I) INTs and amendments to SFRS(I) that were issued but not effective at date
of authorisation of financial statements. Only those relevant to the entity should be indicated.
The list of SFRS(I)s issued but not effective yet is complete as of September 30, 2018. The potential impact of any new
or revised SFRS(I)s, SFRS(I) INTs and amendments to SFRS(I) after that date but before the issue of the financial
statements should also be considered and disclosed.
SFRS(I) 1-8.30(b) Management anticipates that the adoption of the above SFRS(I)s, SFRS(I) INTs and amendments to SFRS(I) in future
periods will not have a material impact on the financial statements of the group and of the company in the period of their
initial adoption except for the following:
Guidance notes
SFRS(I) 1- To meet the requirements of SFRS(I) 1-8.30(b) on disclosing any known or reasonably estimable information relevant to
8.31(d),(e) assessing the possible impact of a new SFRS(I), SFRS(I) INT or amendment to SFRS(I) on the entity’s financial statements
in the period of initial application, an entity should consider disclosing:
 the date as at which it plans to apply the new SFRS(I), SFRS(I) INT or amendments to SFRS(I) initially, and
 either a discussion of the impact that initial application is expected to have on the entity’s financial statements,
or if the impact is not known or reasonably estimable, a statement to that effect.
Illustrative disclosures on the discussion of possible impact:
Example 1 – where entity has assessed and the impact is known and reasonably estimable
Management anticipates that the initial application of the new SFRS(I) XXX will result in changes to the accounting policies
relating to [describe the type of transactions affected] and [account balances] are expected to be impacted by [describe
known or reasonably estimable effects]. Additional disclosures will also be made with respect of [describe the type of
transactions and balances affected], including any significant judgement and estimation made, and [describe any other
significant new disclosures]. Management does not plan to early adopt the new SFRS(I) XXX. [Or – Management plans to
early adopt the new SFRS(I) XXX with effect from annual periods beginning Mm Dd, Yyyy.]
Example 2 – where entity has not yet assessed and the impact is not known or not reasonably estimable
Management anticipates that the initial application of the new SFRS(I) XXX will result in changes to the accounting policies
relating to [describe the type of transactions affected]. Additional disclosures will also be made with respect of [describe
the type of transactions and balances affected], including any significant judgement and estimation made, and [describe
any other significant new disclosures]. Management has set up a committee to perform an assessment of the possible
impact of implementing SFRS(I) XXX. It is currently impracticable to disclose any further information on the known or
reasonably estimable impact to the entity’s financial statements in the period of initial application as management has yet
to complete its detailed assessment. Management does not plan to early adopt the new SFRS(I) XXX. [Or – Management
plans to early adopt the new SFRS(I) XXX with effect from annual periods beginning Mm Dd, Yyyy.]
225
Source

December 31, 2018
SFRS(I) 1-8.30(b) SFRS(I) 16 Leases

The Standard provides a comprehensive model for the identification of lease arrangements and their treatment in the
financial statements of both lessees and lessors. The identification of leases, distinguishing between leases and service
contracts, are determined on the basis of whether there is an identified asset controlled by the customer.
Significant changes to lessee accounting are introduced, with the distinction between operating and finance leases removed
and assets and liabilities are recognised in respect of all leases (subject to limited exemptions for short-term leases and
leases of low value assets). The Standard maintains substantially the lessor accounting approach under the existing
framework.
[Describe possible impact on the financial statements in the period of initial application.]
SFRS(I) 1-8.30(b) Amendments to SFRS(I) 9 Financial Instruments: Prepayment Features with Negative Compensation
The pronouncement allows financial assets with a prepayment option that could result in a party paying or receiving
reasonable compensation for early termination to meet the (solely payments of principal and interest) SPPI condition if
specific criteria are met.
SFRS(I) 1-8.30(b) Amendments to SFRS(I) 1-19 Employee Benefits: Plan Amendment, Curtailment or Settlement
The amendments clarify that the past service cost (or of the gain or loss on settlement) is calculated by measuring the
defined benefit liability (asset) using updated assumptions and comparing benefits offered and plan assets before and after
the plan amendment (or curtailment or settlement) but ignoring the effect of the asset ceiling (that may arise when the
defined benefit plan is in a surplus position).
On measuring the current service cost and the net interest on the net defined benefit liability (asset), an entity will now be
required to use the updated assumptions from this remeasurement to determine current service cost and net interest for
the remainder of the reporting period after the change to the plan. In the case of net interest, the amendments make it
clear that for the period post plan amendment, the net interest is calculated by multiplying the net defined benefit liability
(asset) as remeasured under SFRS(I) 1-19.99 with the discount rate used in the remeasurement (also taking into account
the effect of contributions and benefit payments on the net defined benefit liability (asset)).
SFRS(I) 1-8.30(b) Amendments to SFRS(I) 1-28 Investments in Associates and Joint Ventures: Long-term Interests in Associates
and Joint Ventures
The pronouncement clarifies that SFRS(I) 9, including its impairment requirements, applies to long-term interests in
associates and joint ventures to which the equity method is not applied but that form part of an entity’s net investment in
the investees.

Source

December 31, 2018
SFRS(I) 1-8.30(b) SFRS(I) INT 23 Uncertainty over Income Tax Treatments

The Interpretation provides guidance on determining the accounting tax position when there is uncertainty over income tax
treatments.
The Interpretation requires an entity to:

 determine whether uncertain tax positions are assessed separately or as a group; and
 assess whether it is probable that a tax authority will accept an uncertain tax treatment used, or proposed to be used,
by an entity in its income tax filings:
o if probable, the entity should determine its accounting tax position consistently with the tax treatme nt used or
planned to be used in its income tax filings.
o if not probable, the entity should reflect the effect of uncertainty in determining its accounting tax position.
SFRS(I) 1-8.30(b) Amendments to SFRS(I) 10 Consolidated Financial Statements and SFRS(I) 1-28 Investments in Associates
and Joint Ventures: Sale or Contribution of Assets between an Investor and its Associate or Joint Venture
The pronouncement addresses the requirements in dealing with the sale or contribution of assets between an investor and
its associate or joint venture. In a transaction involving an associate or a joint venture, the extent of gain or loss recognition
depends on whether the assets sold or contributed constitute a business.
When an entity sells or contributes assets that constitute a business to a joint venture or associate, or loses control of a
subsidiary that contains a business but it retains joint control or significant influence, the gain or loss resulting from that
transaction is recognised in full.
When an entity sells or contributes assets that do not constitute a business to a joint venture or associate, or loses control
of a subsidiary that does not contain a business but it retains joint control or significant influence, the gain or loss resulting
from that transaction is recognised only to the extent of the unrelated investors’ interests in the joint venture or associate,
i.e. the entity’s share of the gain or loss is eliminated.
Management does not plan to early adopt the amendments to SFRS(I) 10 and SFRS(I) 1-28 for financial year ending
December 31, 2019.
227
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Illustrative Financial Statements

Directors’ statement and

Year ended December 31, 2018

Scope Illustrative in nature

The illustrative financial statements include the

Standards issued, but not yet effective, as at

Guidance notes Abbreviations used

Illustrative Financial Statements 2018 ii

 SFRS(I) 1-40 Investment Property: Transfers of Investment Property

 SFRS(I) 2 Share-based Payment: Classification and Measurement of Share-based Payment Transactions

 SFRS(I) 9 Financial Instruments

 SFRS(I) 15 Revenue from Contracts with Customers

 SFRS(I) INT 22 Foreign Currency Transactions and Advance Consideration

 The accounting policies under SFRS(I) 9 are illustrated in Note 2.4.

 The accounting policies under SFRS(I) 15 are illustrated in Note 2.18.

Illustrative Financial Statements 2018 iv

Independent auditor’s report 8

Statements of financial position 17

Consolidated statement of profit or loss and other comprehensive income

Alt 1 – Consolidated statement of profit or loss and other comprehensive income 23

Alt 2 – Consolidated statement of profit or loss 27

Alt 2 – Consolidated statement of profit or loss and other comprehensive income 29

Statements of changes in equity 34

Consolidated statement of cash flows

Alt 1 – Direct method of reporting cash flows from operating activities 37

Alt 2 – Indirect method of reporting cash flows from operating activities 39

Notes to financial statements 42

36. Share capital 176

GAAP Singapore Ltd and its subsidiaries

Ang Boey Chwee

GAAP Singapore Ltd and its subsidiaries

CA Sch(12)(9)(a) 3 Directors’ interests in shares and debentures(4)

Name of directors and companies Shareholdings registered Shareholdings in which directors

GAAP Singapore Ltd

Ang Boey Chwee 40,000,000 50,000,000 250,000 250,000

Kenneth Lim Meng Nam 100,000 575,000 - -

Raymond See Teoh Ung - 25,000 - -

GAAP Holdings Ltd

Ang Boey Chwee 10,000 10,000 - -

GAAP Pacific Inc.

Raymond See Teoh Ung 1,000 1,000 - -

Illustrative Financial Statements 2018 2

GAAP Singapore Ltd and its subsidiaries

CA Sch(12)(4) 4 Share options(5)

(a) Options to take up unissued shares

Heng Ing Jong (Chairman)

LM 845(1) (b) Unissued shares under option and options exercised

July 1, 2015 2,500,000 - (650,000) (61,000) 1,789,000 $4.45 July 1, 2017 to

June 30, 2017 1,000,000 - - - 1,000,000 $4.22 July 1, 2019 to

December 31, 2017 1,000,000 - - - 1,000,000 $4.22 January 1, 2020 to

March 31, 2018 - 250,000 - - 250,000 $4.85 April 1, 2020 to

June 30, 2018 - 1,150,000 - - 1,150,000 $4.35 July 1, 2020 to

October 31, 2018 - 300,000 - - 300,000 $4.84 November 1, 2020 to

Total 4,500,000 1,700,000 (650,000) (61,000) 5,489,000

GAAP Singapore Ltd and its subsidiaries

Name of director Options Aggregate Aggregate Aggregate Aggregate

Kenneth Lim Meng Nam 8,000 28,000 (13,000) - 15,000

(c) The audit plans of the external auditors;

(g) The re-appointment of the external auditors of the group.