/ . 6 4
E U R O S P O R T S G L O B A L L I M I T E D
Notes to
the F iNaNci al statemeNts
3 1 ma r ch 2 0 1 5
2 .
Summa r y o f S i gn i f i c an t ac coun t i ng Po l i c i e s ( Con t ’ d )
basis of Presentation
The consolidated financial statements include the financial statements made up to the end of the reporting year of the
company and all of its subsidiaries. The consolidated financial statements are the financial statements of the group in
which the assets, liabilities, equity, income, expenses and cash flows of the parent and its subsidiaries are presented as
those of a single economic entity and are prepared using uniform accounting policies for like transactions and other
events in similar circumstances. All significant intragroup balances and transactions, including income, expenses and
cash flows are eliminated on consolidation. Subsidiaries are consolidated from the date the reporting entity obtains
control of the investee and cease when the reporting entity loses control of the investee. Control exists when the
Group has the power to govern the financial and operating policies so as to gain benefits from its activities.
Changes in the Group’s ownership interest in a subsidiary that do not result in the loss of control are accounted for
within equity as transactions with owners in their capacity as owners. The carrying amounts of the Group’s and non-
controlling interests are adjusted to reflect the changes in their relative interests in the subsidiary. When the Group
loses control of a subsidiary it derecognises the assets and liabilities and related equity components of the former
subsidiary. Any gain or loss is recognised in profit or loss. Any investment retained in the former subsidiary is measured
at fair value at the date when control is lost and is subsequently accounted as available-for-sale financial assets in
accordance with FRS 39.
The Company’s separate financial statements have been prepared on the same basis, and as permitted by the
Companies Act, Chapter 50, the Company’s separate statement of profit or loss and other comprehensive income is
not presented.
revenue recognition
The revenue amount is the fair value of the consideration received or receivable from the gross inflow of economic
benefits during the reporting year arising from the course of the activities of the entity and it is shown net of any related
sales taxes and rebates. Revenue from the sale of goods is recognised when significant risks and rewards of ownership
are transferred to the buyer, there is neither continuing managerial involvement to the degree usually associated
with ownership nor effective control over the goods sold, and the amount of revenue and the costs incurred or to
be incurred in respect of the transaction can be measured reliably. Revenue
from rendering of services that are not
significant transactions is recognised as the services are provided or when the significant acts have been completed.
Rental revenue is recognised on a time-proportion basis that takes into account the effective yield on the asset on a
straight-line basis over the lease term. Interest is recognised using the effective interest method.
Employee benefits
Contributions to a defined contribution retirement benefit plan are recorded as an expense as they fall due. The entity’s
legal or constructive obligation is limited to the amount that it agrees to contribute to an independently administered
fund (such as the Central Provident Fund in Singapore, a government managed defined contribution retirement benefit
plan). For employee leave entitlement the expected cost of short-term employee benefits in the form of compensated
absences is recognised in the case of accumulating compensated absences, when the employees render service that
increases their entitlement to future compensated absences; and in the case of non-accumulating compensated
absences, when the absences occur. A liability for bonuses is recognised where the entity is contractually obliged or
where there is constructive obligation based on past practice.
