45
TEHO INTERNATIONAL INC LTD.
Annual Report 2016
NOTES
TO THE FINANCIAL STATEMENTS
Year ended 30 June 2016
These notes form an integral part of the financial statements.
The financial statementswere authorised for issue by the Board of Directors on 29 September
2016.
1 DOMICILEANDACTIVITIES
TEHO International Inc Ltd. (the “Company”) is a company incorporated in Singapore
with limited liability. The address of the Company’s registered office is 1 Commonwealth
Lane, #09-23, One Commonwealth, Singapore 149544.
The financial statements of the Group as at and for the year ended 30 June 2016
comprise the Company and its subsidiaries (together referred to as the “Group” and
individually as “Group entities”) and the Group’s interest in associates.
The Company is an investment holding company. The principal activities of the
subsidiaries are described in Note 7.
2 BASIS OF PREPARATION
2.1 Statement of compliance
The financial statements have been prepared in accordance with the Singapore
Financial Reporting Standards (“FRS”).
2.2 Basis of measurement
The financial statements are prepared on the historical cost basis except as otherwise
described in the notes below.
2.3 Functional and presentation currency
These financial statements are presented in Singapore dollars, which is the Company’s
functional currency.
2 BASIS OF PREPARATION (CONT’D)
2.4 Use of estimates and judgements
The preparation of the financial statements in conformity with FRSs requires
management to make judgements, estimates and assumptions that affect the
application of accounting policies and the reported amounts of assets, liabilities, income
and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates are recognised in the period in which the estimates are revised
and in any future periods affected.
Information about critical judgements in applying accounting policies that have the most
significant effect on the amounts recognised in the financial statements is included in
the following note:
• Note 7 Consolidation: whether the Group has control over an investee;
Information about assumptions and estimation uncertainties that have a significant risk
of resulting in a material adjustment within the next financial year are included in the
following notes:
• Note 4 Valuation of leasehold buildings;
• Note 5 Assumptions of recoverable amounts relating to goodwill and other
intangible assets;
• Note 7 Assumptions of recoverable amounts relating to investment in subsidiaries;
• Note 9 Measurement of realisable amounts of inventories;
• Note 10 Measurement of realisable amounts of development properties;
• Note 11 Assessment of the recoverability of trade receivables; and
• Note 20 Measurement of profit attributable to properties under development.
Measurement of fair values
A number of the Group’s accounting policies and disclosures require the measurement
of fair values, for both financial and non-financial assets and liabilities.
