FRENCKEN GROUP LIMITED
ANNUAL REPORT 2015
66
NOTES TO FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2015 (CONT’D)
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
(q) Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the executive
committee whose members are responsible for allocating resources and assessing performance of the operating
segments.
(r) Government grants
Grants from government are recognised at their fair values when there is reasonable assurance that the conditions
attached to the grants are complied with and the grants will be received. Expense related grants are recognised
as income in the period in which the respective expenses are incurred.
(s) Dividend to Company’s shareholders
Interim dividends are recorded in the financial year in which they are declared payable. Final dividends are
recorded in the financial year in which the dividends are approved by the shareholders.
(t) Share capital and treasury shares
Ordinary shares are classified as equity. Incremental costs directly attributable to the issuance of new shares are
deducted against the share capital account.
When any entity within the Group purchases the Company’s ordinary shares (“treasury shares”), the consideration
paid including any directly attributable incremental cost is presented as a component within equity attributable to
the Company’s equity holders, until they are cancelled, sold or reissued.
When treasury shares are subsequently cancelled, the cost of treasury shares are deducted against the share
capital account if the shares purchased out of capital of the Company, or against the retained profit of the
Company if the shares are purchased out of earnings of the Company.
When treasury shares are subsequently sold or reissued pursuant to the employee share option scheme, the cost
of treasury shares is reversed from the treasury share account and the realised gain or loss on sale or reissue,
net of any directly attributable incremental transaction costs and related income tax, is recognised in the capital
reserve.
(u) Financial assets
(i) Classification
The Group and the Company classify their financial assets as loans and receivables and available-for-sale.
The classification depends on the nature of the assets and the purpose for which the assets were acquired.
Management determines the classification of its financial assets at initial recognition.
(a) Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are
not quoted in an active market. They are presented as current assets, except for those expected to be
realised later than 12 months after the balance sheet date which are classified as non-current assets.
Loans and receivables are represented as trade receivables, receivables from subsidiaries, dividends
receivables from subsidiaries, other receivables, deposits and cash and cash equivalents on the balance
sheet.
