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FRENCKEN GROUP LIMITED
ANNUAL REPORT 2014
NOTES TO FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2014
1 GENERAL
Frencken Group Limited (the “Company”) is listed on the Singapore Exchange and incorporated and domiciled in
Singapore. The address of its registered office is 80 Robinson Road, #02-00, Singapore 068898.
The principal activity of the Company is that of an investment holding company. The principal activities of the
subsidiaries are set out in Note 14.
The consolidated financial statements of the Group and balance sheet of the Company for the year ended 31 December
2014 were authorised for issue by the Board of Directors on 6 March 2015.
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Basis of preparation
These financial statements have been prepared in accordance with the provisions of the Singapore Companies
Act, Cap. 50 and Singapore Financial Reporting Standards (“FRS”). The financial statements have been prepared
under the historical cost convention except as disclosed in the accounting policies below.
Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.
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 financial statements is determined on such a basis, except for share-based payment transactions that
are within the scope of FRS 102
Share-based Payment
, leasing transactions that are within the scope of FRS 17
Leases
, and measurements that have some similarities to fair value but are not fair value, such as net realisable
value in FRS 2
Inventories
or value in use in FRS 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:
• Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity
can access at the measurement date;
• 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
• Level 3 inputs are unobservable inputs for the asset or liability.
All financial information presented in Singapore dollar (“$”) has been rounded to the nearest thousand ($’000),
unless otherwise stated.
The preparation of financial statements in conformity with FRS requires management to exercise its judgement
in the process of applying the Group’s accounting policies. It also requires the use of certain critical accounting
estimates and assumptions. The areas involving a higher degree of judgement or complexity, or areas where
assumptions and estimates are significant to the financial statements are disclosed in Note 3.
