59
TEHO INTERNATIONAL INC LTD.
Annual Report 2016
NOTES
TO THE FINANCIAL STATEMENTS
Year ended 30 June 2016
3 SIGNIFICANTACCOUNTING POLICIES (CONT’D)
3.20 New standards and interpretations not adopted
Anumber of newstandards, amendments to standards and interpretations are effective
for annual periods beginning after 1 July 2015 and earlier application is permitted;
however, the Group has not early applied the following new or amended standards in
preparing these statements. The Group is currently assessing the potential impact of
adopting these new standards and interpretations, on the financial statements of the
Group and the Company.
These new standards include, among others, FRS 115
Revenue from Contracts with
Customers
and FRS 109
Financial Instruments
which are mandatory for adoption by
the Group on 1 July 2018 while FRS 116
Leases
is mandatory for adoption by the Group
on 1 July 2019.
•
FRS 115 establishes a comprehensive framework for determining whether, how
much and when revenue is recognised. It also introduces new cost guidance
which requires certain costs of obtaining and fulfilling contracts to be recognised
as separate assets when specified criteria are met. When effective, FRS 115
replaces existing revenue recognition guidance, including FRS 18
Revenue
,
FRS 11
Construction Contracts
, INT FRS 113
Customer Loyalty Programmes
, INT
FRS 115
Agreements for the Construction of Real Estate
, INT FRS 118
Transfers of
Assets from Customers
and INT FRS 31
Revenue – Barter Transactions Involving
Advertising Services
.
•
FRS 109 replaces most of the existing guidance in FRS 39
Financial Instruments
:
Recognition and Measurement
. It includes revised guidance on classification and
measurement of financial instruments, a new expected credit loss model for
calculating impairment on financial assets, and new general hedge accounting
requirements.
•
FRS 116 establishes the principles that entities would apply to report information
to users of the financial statements about the amount, timing and uncertainty of
cash flows arising froma lease. The newstandardswill require a lessee to recognise
assets and liabilities arising from a lease on its statements of financial position.
As FRS 115, FRS 109 and FRS 116, when effective, will change the existing accounting
standards and guidance applied by the Group and the Company in accounting for
revenue, financial instruments and leases, these standards are expected to be relevant
to the Group and the Company. The Group does not plan to adopt these standards early.
The Accounting Standards Council (“ASC”) announced on 29 May 2014 that Singapore-
incorporated companies listed on the Singapore Exchange (“SGX”) will apply a new
financial reporting framework identical to the International Financial Reporting
Standards (“IFRS”) for the financial year ending 30 June 2019 onwards. The Group is
currently assessing the impact of transitioning to the new reporting framework on its
financial statements.
4 PROPERTY, PLANTAND EQUIPMENT
Leasehold Plant and Motor Asset under
Note buildings machinery vehicles construction Total
$
$
$
$
$
Group
Cost:
At 1 July 2014
29,723,282 4,755,887 607,664
– 35,086,833
Additions
3,800,200 678,294 529,710 275,983 5,284,187
Acquisitions
through
business
combinations
28
– 483,898
–
– 483,898
Disposals/Written off
– (26,478) (136,345)
– (162,823)
Revaluation
2,200,000
–
–
– 2,200,000
Effects of movements
in exchange rates
– 15,337
–
–
15,337
At 30 June 2015
35,723,482 5,906,938 1,001,029 275,983 42,907,432
Additions
– 636,987 27,967 1,361,385 2,026,339
Disposals/Written off
(13,200,000) (939,834) (130,020)
– (14,269,854)
Reclassification
to investment
property
6
–
–
– (1,637,368) (1,637,368)
Effects of movements
in exchange rates
– (7,601)
–
–
(7,601)
At 30 June 2016
22,523,482 5,596,490 898,976
– 29,018,948
