SG - XYZ Holdings (Singapore) Limited 2018. (SECURED)

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2018 XYZ Holdings (Singapore) Limited
Foreword
2018 is a year with significant changes for most if not all entities. First and foremost, for
annual periods beginning on or after 1 January 2018, all companies will have to contend with
the implementation of two new accounting standards, Revenue from Contracts with Customers
and Financial Instruments. In addition, for Singapore-incorporated companies with equity
and/or debt listed on Singapore Exchange, Business Trusts as well as foreign incorporated
companies listed on Singapore Exchange currently reporting under Financial Reporting
Standards for Singapore will have to apply a new financial reporting framework that is
equivalent to IFRS (Singapore Financial Reporting Standards (International)) The adoption of
the two new accounting standards, as well as the new financial reporting framework generally
requires retrospective application, with different approaches on the restatement of
comparatives and different optional reliefs available on transition.
In the wake of the new changes, implementation of the new standards and preparation of the
financial statements will indubitably entail significant time and effort in the current year. In
this 2018 publication of XYZ Holdings (Singapore) Limited, you may find the following sections
particularly useful in assisting you to get ready for the changes when preparing your
companies’ financial statements:
 Illustrative disclosures of new reporting framework requirements effective for 2018 in
Note 2 to the financial statements, including impact arising from adoption of the two
new accounting standards;
 As we move closer to 2019, enhanced disclosures on the expected impact on the
initial adoption of SFRS(I) 16 Leases in Note 2 to the financial statements.
We trust that this publication will greatly assist you in the preparation of your companies’
financial statements given the major changes in the financial reporting landscape. We would
highly encourage you to consult your EY member firm Assurance Partner if you have any
specific accounting queries.
Christopher Wong Gajendran Vyapuri

Head of Assurance Assurance Partner
Ernst & Young LLP Professional Practice
Ernst & Young LLP
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Preface
Scope of this publication

This illustrative financial statements are an illustration of the annual financial statements of a
Singapore-incorporated company listed on Singapore Exchange, XYZ Holdings (Singapore)
Limited (herein referred to as “XYZ”), prepared in accordance with the Singapore Financial
Reporting Standards (International) (SFRS(I)) and the Singapore Companies Act, Chapter 50.
This publication includes the following components:
 XYZ Holdings (Singapore) Limited – Illustrative directors’ statement, and financial
statements
 Appendix A – Additional illustrative disclosures that are not relevant to XYZ
What’s new in the 2018 edition
The group adopted SFRS(I), a new financial reporting framework equivalent to IFRS on
1 January 2018. This publication illustrates first-time adoption of SFRS(I). For entities that are
not first-time adopters of SFRS(I), illustrative disclosures are available in Good Group
(International) Limited, illustrative financial statements published by EY International Financial
Reporting Standards Group. Reference to standards in the commentaries and reference
indices at the side of the publication are based on IFRS. The mapping of IFRS to its SFRS(I)
equivalent and FRS equivalent are available in the next two pages.
This publication reflects the requirements of SFRS(I) and interpretations issued as at
31 October 2018 that are required to be applied by an entity with an annual reporting period
beginning on or after 1 January 2018. The main body of this publication includes illustration
of disclosures of new standards or amendments which are mandatorily effective for annual
periods beginning on or after 1 January 2018.
To facilitate readers’ reference, we have side-lined key changes in this 2018 publication as
compared to the previous edition in this manner.
Illustrative in nature
The illustrative financial statements serve to provide illustration of a set of annual
consolidated financial statements of a group of companies whose activities include sales of
electronics equipment, installation of fire prevention equipment, property development,
construction and investment holding. The disclosures contained in these illustrative financial
statements are made based on a hypothetical group of entities and certain assumptions have
been made about the applicability of the disclosures required by SFRS(I). In addition, certain
disclosure requirements of the Singapore Exchange Securities Trading Limited’s (SGX-ST)
Listing Manual have also been included in these illustrative financial statements. Readers
should note that the SGX-ST’s disclosure requirements may be included in other parts of the
entity’s annual report instead.
The illustrative financial statements are designed to capture a wide set of circumstances and
transactions which may not be relevant to all entities. Disclosures illustrated are those that
are relevant to the circumstance of XYZ. Also, since XYZ is a fictitious entity, assessing
materiality is not possible in some circumstances. XYZ is a helpful enabler for entities
preparing financial statements under SFRS(I), but its illustrative nature must be appreciated.
Important notices
This publication is intended as an illustrative guide rather than a definitive statement. While
the illustrative financial statements contain most of the usual disclosures typically found in
the financial statements of a group of companies whose activities include manufacturing,
property development and investment holding, the disclosures and commentaries in this
publication are not meant to be exhaustive. Reference should be made to the relevant
standards and regulations for specific disclosure requirements.
This publication should not be relied upon as a substitute for seeking professional advice
concerning the appropriate accounting treatment for specific individual situations or ensuring
compliance with the Singapore Financial Reporting Standards (International) and Singapore
Companies Act, Chapter 50.
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Preface
IFRSs vs SFRS(I)and FRS equivalents
IFRS SFRS(I) FRS

Description
Reference equivalent equivalent
Preface Preface to the International Financial Reporting Standards Preface Preface
Framework The Conceptual Framework for Financial Reporting Framework Framework
IAS 1 Presentation of Financial Statements SFRS(I) 1-1 FRS 1
IAS 2 Inventories SFRS(I) 1-2 FRS 2
IAS 7 Statements of Cash Flows SFRS(I) 1-7 FRS 7
IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors SFRS(I) 1-8 FRS 8
IAS 10 Events After the Reporting Period SFRS(I) 1-10 FRS 10
IAS 12 Income Taxes SFRS(I) 1-12 FRS 12
IAS 16 Property, Plant and Equipment SFRS(I) 1-16 FRS 16
IAS 17 Leases SFRS(I) 1-17 FRS 17
IAS 19 Employee Benefits SFRS(I) 1-19 FRS 19
IAS 20 Accounting for Government Grants and Disclosure of SFRS(I) 1-20 FRS 20
Government Assistance
IAS 21 The Effects of Changes in Foreign Exchange Rates SFRS(I) 1-21 FRS 21
IAS 23 Borrowing Costs SFRS(I) 1-23 FRS 23
IAS 24 Related Party Disclosures SFRS(I) 1-24 FRS 24
IAS 26 Accounting and Reporting by Retirement Benefit Plans SFRS(I) 1-26 FRS 26
IAS 27 Separate Financial Statements SFRS(I) 1-27 FRS 27
IAS 28 Investments in Associates and Joint Ventures SFRS(I) 1-28 FRS 28
IAS 29 Financial Reporting in Hyperinflationary Economies SFRS(I) 1-29 FRS 29
IAS 32 Financial Instruments: Presentation SFRS(I) 1-32 FRS 32
IAS 33 Earnings Per Share SFRS(I) 1-33 FRS 33
IAS 34 Interim Financial Reporting SFRS(I) 1-34 FRS 34
IAS 36 Impairment of Assets SFRS(I) 1-36 FRS 36
IAS 37 Provisions, Contingent Liabilities and Contingent Assets SFRS(I) 1-37 FRS 37
IAS 38 Intangible Assets SFRS(I) 1-38 FRS 38
IAS 39 Financial Instruments: Recognition and Measurement SFRS(I) 1-39 FRS 39
IAS 40 Investment Property SFRS(I) 1-40 FRS 40
IAS 41 Agriculture SFRS(I) 1-41 FRS 41
First-Time Adoption of International Financial Reporting
IFRS 1 SFRS(I) 1 FRS 101
Standards
IFRS 2 Share-based Payment SFRS(I) 2 FRS 102
IFRS 3 Business Combinations SFRS(I) 3 FRS 103
IFRS 4 Insurance Contracts SFRS(I) 4 FRS 104
IFRS 5 Non-current Assets Held for Sale and Discontinued Operations SFRS(I) 5 FRS 105
IFRS 6 Exploration for and Evaluation of Mineral Resources SFRS(I) 6 FRS 106
IFRS 7 Financial Instruments: Disclosures SFRS(I) 7 FRS 107
IFRS 8 Operating Segments SFRS(I) 8 FRS 108
IFRS 9 Financial Instruments SFRS(I) 9 FRS 109
IFRS 10 Consolidated Financial Statements SFRS(I) 10 FRS 110
IFRS 11 Joint Arrangements SFRS(I) 11 FRS 111
IFRS 12 Disclosure of Interests in Other Entities SFRS(I) 12 FRS 112
IFRS 13 Fair Value Measurement SFRS(I) 13 FRS 113
IFRS 14 Regulatory Deferral Accounts SFRS(I) 14 FRS 114
IFRS 15 Revenue from Contracts with Customers SFRS(I) 15 FRS 115
IFRS 16 Leases SFRS(I) 16 FRS 116
IFRS 17 Insurance Contracts SFRS(I) 17 FRS 117
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Preface
IFRIC interpretations vs SFRS(I) interpretations and FRS interpretations equivalents
IFRS SFRS(I) FRS

Description
Reference equivalent equivalent
SIC-7 Introduction of the Euro SFRS(I) INT 1-1 INT FRS 7

SIC-10 Government Assistance – No Specific Relation to Operating SFRS(I) INT 1-10 INT FRS 10
Activities
SIC-15 Operating Leases – Incentives SFRS(I) INT 1-15 INT FRS 15
SIC-25 Income Taxes – Changes in the Tax Status of an Entity or its SFRS(I) INT 1-25 INT FRS 25
Shareholders
SIC-27 Evaluating the Substance of Transactions Involving the Legal SFRS(I) INT 1-27 INT FRS 27
Form of a Lease
SIC-29 Service Concession Arrangements: Disclosures SFRS(I) INT 1-29 INT FRS 29
SIC-32 Intangible Assets - Web Site Costs SFRS(I) INT 1-32 INT FRS 32
IFRIC 1 Changes in Existing Decommissioning, Restoration and SFRS(I) INT 1 INT FRS 101
Similar Liabilities
IFRIC 2 Members’ Shares in Co-operative Entities and Similar SFRS(I) INT 2 -
Instruments
IFRIC 4 Determining Whether an Arrangement Contains a Lease SFRS(I) INT 4 INT FRS 104
IFRIC 5 Rights to Interests Arising from Decommissioning, SFRS(I) INT 5 INT FRS 105
Restoration and Environmental Rehabilitation Funds
IFRIC 6 Liabilities Arising from Participating in a Specific Market – SFRS(I) INT 6 INT FRS 106
Waste Electrical and Electronic Equipment
IFRIC 7 Applying the Restatement Approach under IAS 29 Financial SFRS(I) INT 7 INT FRS 107
Reporting in Hyperinflationary Economies
IFRIC 10 Interim Financial Reporting and Impairment SFRS(I) INT 10 INT FRS 110
IFRIC 12 Service Concession Arrangements SFRS(I) INT 12 INT FRS 112
IFRIC 14 IAS 19 - The Limit on a Defined Benefit Asset, Minimum SFRS(I) INT 14 INT FRS 114
Funding Requirements and their interaction
IFRIC 16 Hedges of a Net Investment in a Foreign Operation SFRS(I) INT 16 INT FRS 116
IFRIC 17 Distributions of Non-cash Assets to Owners SFRS(I) INT 17 INT FRS 117
IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments SFRS(I) INT 19 INT FRS 119
IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine SFRS(I) INT 20 INT FRS 120
IFRIC 21 Levies SFRS(I) INT 21 INT FRS 121
IFRIC 22 Foreign Currency Transactions and Advance Consideration SFRS(I) INT 22 INT FRS 122
IFRIC 23 Uncertainty over Income Tax Treatments SFRS(I) INT 23 INT FRS 123
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Preface
Abbreviations
The following abbreviations are used in this publication:
CA Singapore Companies Act, Chapter 50
IFRS International Financial Reporting Standards (International)
IFRIC INT Interpretations of IFRS
IFRS IG IFRS Implementation Guidance
SFRS(I) Singapore Financial Reporting Standards (International)
SFRS(I) INT Interpretations of SFRS(I)
SFRS(I) IG SFRS(I) Implementation Guidance
FRS Financial Reporting Standards in Singapore
INT FRS Interpretations of FRS
IAS International Accounting Standards
SSA Singapore Standards on Auditing
SGX Singapore Exchange Securities Trading Limited (SGX-ST)’s Listing Manual
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Contents
Page
General information 1
Director’s statement 2
Independent auditor’s report 7
Consolidated income statement 11
Consolidated statement of comprehensive income 12
Balance sheets 17
Statements of changes in equity 19
Consolidated cash flow statement 27
Notes to the financial statements 32
1. Corporate information 32
2. Summary of significant accounting policies 32
2.1 Basis of preparation 32
2.2 First-time adoption of Singapore Financial Reporting Standards
(International) (SFRS(I) 34
2.3 Standards issued but not yet effective 50
2.4 Basis of consolidation and business combinations 54
2.5 Transactions with non-controlling interests 57
2.6 Foreign currency 58
2.7 Property, plant and equipment 59
2.8 Investment properties 60
2.9 Intangible assets 61
2.10 Land use rights 62
2.11 Impairment of non-financial assets 62
2.12 Subsidiaries 63
2.13 Joint arrangements 63
2.14 Joint ventures and associates 64
2.15 Financial instruments 67
2.16 Impairment of financial assets 72
2.17 Cash and cash equivalents 73
2.18 Not in use
2.19 Development properties 73
2.20 Inventories 73
2.21 Provisions 74
2.22 Government grants 75
2.23 Financial guarantee 75
2.24 Borrowing costs 76
2.25 Convertible redeemable preference shares 76
2.26 Employee benefits 77
2.27 Leases 80
2.28 Non-current assets held for sale and discontinued operations 80
2.29 Revenue 81
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Contents
Page
Notes to the financial statements (continued)

2.30 Taxes 86
2.31 Share capital and share issuance 88
2.32 Treasury shares 88
2.33 Contingencies 88
3. Significant accounting judgements and estimates 89
3.1 Judgements made in applying accounting policies 89
3.2 Key sources of estimation uncertainty 91
4. Revenue 95
5. Interest income 103
6. Other income 103
7. Finance costs 104
8. Impairment losses on financial assets and other expenses 104
9. Profit before tax from continuing operations 105
10. Income tax expense 107
11. Discontinued operation and disposal group classified as held for sale 110
12. Earnings per share 112
13. Property, plant and equipment 115
14. Investment properties 118
15. Intangible assets 120
16. Land use rights 125
17. Investment in subsidiaries 125
18. Investment in joint venture 139
19. Investment in associates 142
20. Deferred tax 145
21. Trade and other receivables 147
22. Investment securities 153
23. Not in use
24. Development properties 157
25. Inventories 158
26. Derivatives 159
27. Cash and short-term deposits 160
28. Provisions 161
29. Deferred capital grants 162
30. Loans and borrowings 162
31. Trade and other payable 168
32. Other liabilities 169
33. Share capital and treasury shares 170
34. Other reserves 171
35. Employee benefits 172
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Contents
Page
Notes to the financial statements (continued)

36. Related party transactions 175
37. Commitments 178
38. Contingencies 181
39. Fair value of assets and liabilities 182
40. Financial risk management objectives and policies 201
41. Capital management 223
42. Segment information 225
43. Dividends 231
44. Events occurring after the reporting period 232
45. Authorisation of financial statements for issue 232
Appendices
Appendix A Additional illustrative disclosures that are not relevant to XYZ Holdings
Appendix A-1 Consolidated statement of comprehensive income in one statement –
Illustrating the analysis of expenses by nature 235
Appendix A-2 Defined benefit plans 237
Appendix A-3 SFRS(I) 7 Hedge accounting disclosures 248
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Co. Reg. No 123456789Z
XYZ Holdings (Singapore)

Limited and its subsidiaries
Illustrative financial statements
for the financial year ended 31 December 2018
The names of people and corporations included as illustrations are fictitious. Any resemblance
to any person or business is purely coincidental

Co. Reg. No 123456789Z
XYZ Holdings (Singapore) Limited

and its subsidiaries
Illustrative financial statements
for the financial year ended 31 December 2018
The names of people and corporations included as illustrations are fictitious. Any resemblance to
any person or business is purely coincidental.
XYZ Holdings (Singapore) Limited and its subsidiaries
General information
Gneral information
Directors
Ang Beng Choo – Chairman
De Silva Elizabeth Frances – Chief Executive Officer
Goh Hock Inn
Jee Kim Leng
Musa Nasir Osman
Pek Que Ru
See Tong Tong
Company secretary SGX 1207.1
Lee Yiew Hong
Registered office
[Address, telephone number, facsimile number and electronic mail address (if any)] SGX 1207.2
Solicitors
Laura & Co. LLP
Bankers
Good Bank Limited
South Bank Limited
CPA Bank Limited
Share registrar SGX 1207.3
[Address]
Auditor SGX 713.1

Ernst & Young LLP
One Raffles Quay
North Tower, Level 18
Singapore 048583
Partner in charge: Alex Yang (Date of appointment: since financial year ended 31 December 2017)
2018 XYZ Holdings (Singapore) Limited | 1

Directors’ statement
For the financial year ended 31 December 2018
The directors are pleased to present their statement to the members together with the audited CA 201.16
consolidated financial statements of XYZ Holdings (Singapore) Limited (the Company) and its
subsidiaries (collectively, the Group) and the balance sheet and statement of changes in equity
of the Company for the financial year ended 31 December 2018.
1. Opinion of the directors

In the opinion of the directors,
CA Sch 12.1.a
(i) the consolidated financial statements of the Group and the balance sheet  and
statement of changes in equity of the Company are drawn up so as to give a true and
fair view of the financial position of the Group and of the Company as at 31
December 2018 and the financial performance, changes in equity and cash flows of
the Group and changes in equity of the Company  for the year ended on that date;
and
(ii) at the date of this statement there are reasonable grounds to believe that the CA Sch 12.1.b
Company will be able to pay its debts as and when they fall due.
2. Directors CA Sch 12.7
The directors of the Company in office at the date of this statement are:
Ang Beng Choo
De Silva Elizabeth Frances (appointed on 2 February 2018)
Goh Hock Inn
Jee Kim Leng
Musa Nasir Osman
Pek Que Ru
See Tong Tong
In accordance with Articles 93 and 94 of the Company’s Articles of Association, Jee Kim
Leng, Pek Que Ru and See Tong Tong retire and, being eligible, offer themselves for re-
election.
3. Arrangements to enable directors to acquire shares and debentures CA Sch.12.8.a

CA Sch.12.8.b
Except as described in paragraph five below, neither at the end of nor at any time during
the financial year was the Company a party to any arrangement whose objects are, or one
of whose objects is, to enable the directors of the Company to acquire benefits by means
of the acquisition of shares or debentures of the Company or any other body corporate.

CA Sch 12.9
4. Directors’ interests in shares and debentures
The following directors, who held office at the end of the financial year, had, according to
the register of directors’ shareholdings, required to be kept under Section 164 of the
Singapore Companies Act, Chapter 50, an interest in shares and share options of the
Company and related corporations (other than wholly-owned subsidiaries) as stated
below:
Direct interest Deemed interest
At the At the end of At the At the end of

beginning of financial year beginning of financial year
financial year financial year
or date of or date of
Name of director appointment appointment
Ordinary shares of the Company

Goh Hock Inn 340,000 345,000 2,100,000 2,100,000
De Silva Elizabeth Frances 5,000 10,000 – –
Share options of the Company
Goh Hock Inn 50,000 60,000 – –
Ordinary shares of £1 each of the
holding company (Good Group
(International)
Goh Hock InnLtd)
10,000 10,000 – –
There was no change in any of the above-mentioned interests in the Company between SGX 1207.7
the end of the financial year and 21 January 2019.
Except as disclosed in this statement, no director who held office at the end of the
financial year had interests in shares, share options, warrants or debentures of the
Company, or of related corporations, either at the beginning of the financial year, or date
of appointment if later, or at the end of the financial year.
5. Options
SGX 853
At an Extraordinary General Meeting held on 23 December 2012, shareholders approved
the Senior Executive Option Plan and the General Employee Share Option Plan for the
granting of non-transferable options that are settled by physical delivery of the ordinary
shares of the Company, to eligible senior executives and employees respectively.
The committee administering the employee share option plans comprise three directors, SGX 852.1.a
Musa Nasir Osman, Pek Que Ru and See Tong Tong.
During the financial year: CA Sch 12.2
 The Company has granted 37,000 share options under the Senior Executive Option
Plan. These options expire on 30 June 2023 and are exercisable if and when the
Group’s earnings per share amount increases by 12% within three years from the
date of grant.
 The Company has also granted 163,000 share options under the General Employee
Share Option Plan. These options expire on 30 June 2023 and are exercisable if the
employee remains in service for three years from the date of grant and that certain
market conditions as detailed in Note 35 to the financial statements are met.

5. Options (continued)
 75,000 treasury shares were reissued at a weighted average exercise price of CA Sch 12.5
S$1.08 each, upon the exercise of options granted pursuant to the employee share
option plans.
Details of all the options to subscribe for ordinary shares of the Company pursuant to the CA Sch 12.6
employee share option plans as at 31 December 2018 are as follows:
Expiry date Exercise price (S$) Number of options

31 December 2019 1.05 45,000
30 November 2020 1.18 55,000
1 January 2021 1.22 100,000
31 December 2022 1.26 125,000
30 June 2023 1.30 200,000
Total 525,000
Details of the options to subscribe for ordinary shares of the Company granted to SGX 852.1.b.i
directors of the Company pursuant to the Senior Executive Option Plan are as follows:
Aggregate
Options options granted Aggregate options Aggregate
granted since exercised since options
during commencement commencement of outstanding as
financial of plan to end of plan to end of at end of
Name of director year financial year financial year financial year
Goh Hock Inn 15,000 105,000 (35,000) 70,000
De Silva Elizabeth Frances 22,000 75,000 (15,000) 60,000
Total 37,0001 180,000 (50,000) 130,000
1
These options are exercisable between the periods from 30 June 2021 to 30 June 2023
at the exercise price of S$1.30 if the vesting conditions are met.
Since the commencement of the employee share option plans till the end of the financial SGX 852.2
year:
SGX 852.1.b.ii
 No options have been granted to the controlling shareholders of the Company and their
associates
 No participant other than the two directors mentioned above has received 5% or more SGX 852.1.b.ii
of the total options available under the plans SGX 852.c.i
SGX 852.1.c.ii
 No options have been granted to directors and employees of the holding company and
its subsidiaries
 No options that entitle the holder to participate, by virtue of the options, in any share CA Sch 12.2
issue of any other corporation have been granted
 No options have been granted at a discount SGX 852.1.d

6. Audit committee
CA 201B.9
The audit committee (AC) carried out its functions in accordance with Section 201B (5) 
of the Singapore Companies Act, Chapter 50, including the following:
 Reviewed the audit plans of the internal and external auditors of the Group and the
Company, and reviewed the internal auditor’s evaluation of the adequacy of the
Company’s system of internal accounting controls and the assistance given by the
Group and the Company’s management to the external and internal auditors
 Reviewed the quarterly and annual financial statements and the independent auditor’s
report on the annual financial statements of the Group and the Company before their
submission to the board of directors
 Reviewed effectiveness of the Group and the Company’s material internal controls,
including financial, operational and compliance controls and risk management via
reviews carried out by the internal auditor
 Met with the external auditor, other committees, and management in separate
executive sessions to discuss any matters that these groups believe should be
discussed privately with the AC
 Reviewed legal and regulatory matters that may have a material impact on the financial
statements, related compliance policies and programmes and any reports received
from regulators
 Reviewed the cost effectiveness and the independence and objectivity of the external
auditor
 Reviewed the nature and extent of non-audit services provided by the external auditor
 Recommended to the board of directors the external auditor to be nominated,
approved the compensation of the external auditor, and reviewed the scope and results
of the audit
 Reported actions and minutes of the AC to the board of directors with such
recommendations as the AC considered appropriate
 Reviewed interested person transactions in accordance with the requirements of the
Singapore Exchange Securities Trading Limited’s Listing Manual
The AC, having reviewed all non-audit services provided by the external auditor to the SGX 1207.6.b
Group, is satisfied that the nature and extent of such services would not affect the
independence of the external auditor. The AC has also conducted a review of interested
person transactions.
The AC convened four meetings during the year with full attendance from all members,
except for one where a member was absent. The AC has also met with internal and
external auditors, without the presence of the Company’s management, at least once a
year.
Further details regarding the AC are disclosed in the Report on Corporate Governance.
7. Auditor
Ernst & Young LLP have expressed their willingness to accept re-appointment as auditor.

CA 201.16
On behalf of the board of directors:
___________________________ ___________________________
Ang Beng Choo De Silva Elizabeth Frances
Director Director
27 February 2019
Commentary:
 IAS 1 uses the terms statement of financial position and statement of cash flows. However, an
entity is not obliged to use these terminologies.
In this illustration, the Group has chosen to use the terms balance sheet and cash flow
statement. If an entity has chosen to use the terms introduced by IAS 1, the entity should make
reference to the terms used in its financial statements.
 Presentation of the statement of changes in equity for the Company when consolidated financial
statements are presented is optional. In this illustration, the Company has chosen to present the
statement of changes in equity for the Company together with the consolidated financial
statements and balance sheet of the Company. Accordingly, the statement by directors includes
the directors’ opinion on whether the statement of changes in equity is drawn up so as to give a
true and fair view of the changes in equity of the Company. This applies to the auditor’s opinion
expressed in the independent auditor’s report as well.
 Section 201B (5) of the Companies Act requires a description of the nature and extent of the
functions performed by the audit committee pursuant to Section 201B (5). If the nature and
extent of the functions are described in the Report on Corporate Governance and the Directors’
Report makes reference to the Report on Corporate Governance instead, the directors must
ensure that the Report on Corporate Governance describes the functions pursuant to Section
201B (5) of the Companies Act.

Independent auditor’s report 

Independent Auditor’s Report to the Members of XYZ Holdings (Singapore) Limited SSA 700.21 and 22
CA 207.1
Report on the Audit of the Financial Statements SSA 700.44 and 45
Opinion SSA 700.23
We have audited the financial statements of XYZ Holdings (Singapore) Limited (the “Company”) and its SSA 700.24
subsidiaries (collectively, the “Group”), which comprise the balance sheets of the Group and the Company
as at 31 December 2018, the statements of changes in equity of the Group and the Company  and the
consolidated income statement, consolidated statement of comprehensive income  and consolidated cash
flow statement  of the Group for the year then ended, and notes to the financial statements, including a
summary of significant accounting policies.
In our opinion, the accompanying consolidated financial statements of the Group, the balance sheet and SSA 700.25
the statement of changes in equity of the Company are properly drawn up in accordance with the CA 207.2.a
provisions of the Companies Act, Chapter 50 (the Act) and Singapore Financial Reporting Standards
(International) (SFRS(I)) so as to give a true and fair view of the consolidated financial position of the
Group and the financial position of the Company as at 31 December 2018 and of the consolidated financial
performance, consolidated changes in equity and consolidated cash flows of the Group and changes in
equity of the Company for the year ended on that date.
Basis for Opinion SSA 700.28
We conducted our audit in accordance with Singapore Standards on Auditing (SSAs). Our responsibilities
under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial
Statements section of our report. We are independent of the Group in accordance with the Accounting and
Corporate Regulatory Authority (ACRA) Code of Professional Conduct and Ethics for Public Accountants
and Accounting Entities (ACRA Code) together with the ethical requirements that are relevant to our audit
of the financial statements in Singapore, and we have fulfilled our other ethical responsibilities in
accordance with these requirements and the ACRA Code. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters SSA 700.30
Key audit matters are those matters that, in our professional judgement, were of most significance in our
audit of the financial statements of the current period. These matters were addressed in the context of our
audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters. For each matter below, our description of how our audit addressed the
matter is provided in that context.
We have fulfilled our responsibilities described in the Auditor’s Responsibilities for the Audit of the Financial
Statements section of our report, including in relation to these matters. Accordingly, our audit included the
performance of procedures designed to respond to our assessment of the risks of material misstatement of
the financial statements. The results of our audit procedures, including the procedures performed to
address the matters below, provide the basis for our audit opinion on the accompanying financial
statements.
[Description of each key audit matter in accordance with SSA 701 Communicating Key Audit Matters in the
Independent Auditor’s Report]  SSA 720.21 and32
Other Information SSA 720.22.a

Management is responsible for other information. The other information comprises the information
included in the annual report,  but does not include the financial statements and our auditor’s report
thereon. SSA 720.22.c
Our opinion on the financial statements does not cover the other information and we do not express any
form of assurance conclusion thereon. SSA 720.22.d
In connection with our audit of the financial statements, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, SSA 720.22.e
based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard. 


Independent Auditor’s Report to the Members of XYZ Holdings (Singapore) Limited (continued)
Responsibilities of Management and Directors for the Financial Statements SSA 700.33.a
Management is responsible for the preparation of financial statements that give a true and fair view in SSA 700.34.a
accordance with the provisions of the Act and SFRS(I), and for devising and maintaining a system of
internal accounting controls sufficient to provide a reasonable assurance that assets are safeguarded
against loss from unauthorised use or disposition; and transactions are properly authorised and that they
are recorded as necessary to permit the preparation of true and fair financial statements and to maintain
accountability of assets.
In preparing the financial statements, management is responsible for assessing the Group’s ability to SSA 700.34.b
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless management either intends to liquidate the Group or to cease
operations, or has no realistic alternative but to do so.
The directors’ responsibilities include overseeing the Group’s financial reporting process. SSA 700.34
Auditor’s Responsibilities for the Audit of the Financial Statements SSA 700.38
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are SSA 700.37
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with SSAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
basis of these financial statements.
As part of an audit in accordance with SSAs, we exercise professional judgement and maintain professional SSA 700.39
scepticism throughout the audit. We also:
 Identify and assess the risks of material misstatement of the financial statements, whether due to SSA 700.39.b.i
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override
of internal control.
 Obtain an understanding of internal control relevant to the audit in order to design audit procedures SSA 700.39.b.ii
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Group’s internal control.
 Evaluate the appropriateness of accounting policies used and the reasonableness of accounting SSA 700.39.b.iii
estimates and related disclosures made by management.
SSA 700.39.b.iv
 Conclude on the appropriateness of management’s use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty exists related
to events or conditions that may cast significant doubt on the Group’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in our
auditor’s report to the related disclosures in the financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to
the date of our auditor’s report. However, future events or conditions may cause the Group to cease
to continue as a going concern.
SSA 700.39.b.v
 Evaluate the overall presentation, structure and content of the financial statements, including the
disclosures, and whether the financial statements represent the underlying transactions and events
in a manner that achieves fair presentation.
 Obtain sufficient appropriate audit evidence regarding the financial information of the entities or SSA 700.38.c
business activities within the Group to express an opinion on the consolidated financial statements.
We are responsible for the direction, supervision and performance of the group audit. We remain
solely responsible for our audit opinion.
SSA 700.40.a
We communicate with the directors regarding, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in internal control that we identify
during our audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements SSA 700.40.b
regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.


Independent Auditor’s Report to the Members of XYZ Holdings (Singapore) Limited (continued)
Auditor’s Responsibilities for the Audit of the Financial Statements (continued)
From the matters communicated with the directors, we determine those matters that were of most SSA 700.40.c
significance in the audit of the financial statements of the current period and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should
not be communicated in our report because the adverse consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements SSA 700.43
In our opinion, the accounting and other records required by the Act to be kept by the Company and by CA 207.2.b
those subsidiary corporations incorporated in Singapore of which we are the auditors have been properly
kept in accordance with the provisions of the Act.
The engagement partner on the audit resulting in this independent auditor’s report is [Partner’s name]. SSA 700.46
_____________________
SSA 700.47
Ernst & Young LLP
Public Accountants and
Chartered Accountants
SSA 700.48
Singapore SSA 700.49
27 February 2019


Commentary:
 SSA 701 Communicating Key Audit Matters (KAM)s In the Independent Auditor’s Report is
applicable to audits of complete sets of general purpose financial statements of listed entities.
Listed entities are defined in the Glossary of Terms to SSA as “an entity whose shares, stock or
debt are quoted or listed on a recognised stock exchange, or are marketed under the regulations
of a recognised stock exchange or other equivalent body“. As such, KAM reporting is also
applicable to entities which have their bonds or notes trading on SGX or other recognised stock
exchange.
 This illustrative independent auditor’s report is of a listed entity which prepares consolidated
financial statements.
For illustrative auditor’s reports of private companies and other entity types, please refer to
Appendix 1 of AGS 1 Sample Independent Auditor’s Reports.
 Please refer to commentary no. 1 of the directors’ statement.
 In this illustration, the Group has chosen to present its comprehensive income in two linked
statements. If an entity has chosen to present its comprehensive income in one single statement,
the reference to consolidated income statement should be removed.
 Please refer to commentary no. 2 of the directors’ statement.
 Key audit matters (KAM)s relate to those matters that, in the auditor’s professional judgement,
were of most significance in the audit of the financial statements of the current period and are
selected from matters communicated to those charged with governance.
This illustrative auditor’s report does not include illustration of KAMs of XYZ Holdings (Singapore)
Limited. The auditor’s report should be customised to include the KAMs according to the specific
circumstances of the entity.
 SSA 720 The Auditor’s Responsibilities Relating to Other Information defines other information as
financial or non-financial information (other than financial statements and the auditor’s report
thereon) included in an entity’s annual report.
A list of examples of amounts or other items that may be included in other information are
available in Appendix 1 of SSA 720.
 In this illustration, the auditor has obtained all of the other information prior to the date of the
auditor’s report and has not identified a material misstatement of the other information.
For other illustrations of “Other information” paragraphs, such as when the auditor has not
obtained all of the other information prior to the date of the auditor’s report but expects to obtain
other information after the date of auditor’s report, or when the auditor has identified a material
misstatement of the other information, please refer to Appendix 2 in SSA 720.

Consolidated income statement 

(Illustrating the analysis of expenses by function)

2018 2017 IAS 1.81A
Note $’000 $’000 IAS 1.103
Continuing operations 
IAS 1.82.a
Revenue 4 136,720 145,603 IAS 1.103
Cost of sales (104,271) (112,536) IAS 1.103
Gross profit 32,449 33,067 IAS 1.103
Other items of income  IAS 1.103

Interest income  5 430 327
Dividend income from investment securities  526 406
Other income 6 1,511 886
Other items of expense 

Marketing and distribution (4,895) (4,195) IAS 1.103
IAS 1.103,
Research and development  (320) (327) IAS 38.126
Administrative expenses (20,266) (18,952) IAS 1.103
Finance costs 7 (1,715) (1,512) IAS 1.82.b
Impairment losses on financial assets 8 (195) (425) IAS 1.82.ba

Other expenses 8 (1,276) (299) IAS 1.103
Share of results of joint ventures  151 126 IAS 1.82.c

Share of results of associates  657 324 IAS 1.82.c
Profit before tax from continuing operations 9 7,057 9,426 IAS 1.85
Income tax expense 10 (1,557) (1,733) IAS 1.82.d, IAS 12.77
Profit from continuing operations, net of tax 5,500 7,693 IAS 1.85
Discontinued operation 
IAS 1.82.ea, IFRS 5.33.a &
Loss from discontinued operation, net of tax 11 (544) (188) 33A
Profit for the year  4,956 7,505 IAS 1.81A.a
Attributable to:
Owners of the Company
Profit from continuing operations, net of tax 5,320 7,293 IFRS 5.33.d
Loss from discontinued operation, net of tax (544) (188) IFRS 5.33.d
Profit for the year attributable to owners of the Company 4,776 7,105 IAS 1.81B.ii
Non-controlling interests
Profit from continuing operations, net of tax 180 400
Loss from discontinued operation, net of tax – –
Profit for the year attributable to non-controlling interests 180 400 IAS 1.81B.i
Earnings per share from continuing operations attributable
to owners of the Company (cents per share)
Basic 12(a) 22.98 31.63 IAS 33.66 and 67A
Diluted 12(a) 22.73 31.19 IAS 33.66 and 67A
Earnings per share (cents per share)

Basic 12(b) 20.63 30.82 IAS 33.66 and 67A
Diluted 12(b) 20.44 30.39 IAS 33.66 and 67A
The accompanying accounting policies and explanatory notes form an integral part of the financial statements.

Consolidated statement of comprehensive income


2018 2017
$’000 $’000
Profit for the year 4,956 7,505 IAS 1.81A.a
Other comprehensive income: 
Items that will not be reclassified to profit or loss IAS 1.82A.a.i
Net fair value gains on equity instruments at fair value

through other comprehensive income 130 - IFRS 7.20.a.vii
Net surplus on revaluation of freehold land and buildings 1,250 2,404 IAS 16.77.f
Share of gain on property revaluation of associates  62 10 IAS 1.82A.b.i
1,442 2,414
Items that may be reclassified subsequently to profit or loss IAS 1.82A.a.ii
Net fair value gains on debt instruments at fair value through
other comprehensive income 64 - IFRS 7.20.a.viii
Net fair value changes on debt instruments at fair value

through other comprehensive income reclassified to
profit or loss (20) - IFRS 7.20.a.viii
Net fair value gains on available-for-sale financial assets - 110 IFRS 7.20.a.ii
Net fair value changes on available-for-sale financial assets

reclassified to profit or loss - (12) IFRS 7.20.a.ii
Foreign currency translation (181) (82) IAS 21.52.b
(137) 16
Other comprehensive income for the year, net of tax 1,305 2,430 IAS 1.81A.b
Total comprehensive income for the year  6,261 9,935 IAS 1.81A.c
Attributable to:
Owners of the Company 6,091 9,475 IAS 1.81B.b.ii
Non-controlling interests 170 460 IAS 1.81B.b.i
Total comprehensive income for the year 6,261 9,935
Attributable to:
Total comprehensive income from continuing operations,
net of tax 6,585 9,643 IFRS 5.33.d
Total comprehensive income from discontinued operation,
net of tax (494) (168) IFRS 5.33.d
Total comprehensive income for the year attributable to
owners of the Company 6,091 9,475


Commentary:
Complete set of financial statements
 Under IAS 1, a complete set of financial statements comprises:

(a) A statement of financial position as at the end of the period* IAS 1.10
(b) A statement of profit or loss and other comprehensive income for the period
(c) A statement of changes in equity for the period
(d) A statement of cash flows for the period*
(e) Notes, comprising a summary of significant accounting policies and other explanatory
information
(f) Comparative information in respect of the preceding period**
(g) A statement of financial position as at the beginning of the earliest comparative period when
an entity applies an accounting policy retrospectively or makes a retrospective restatement
of items in its financial statements, or when it reclassifies items in its financial statements*** IAS 1.10
* IAS 1 uses the terms statement of financial position and statement of cash flows. However,
an entity is not obliged to use these terms.
** An entity shall present, as a minimum, two statements of financial position, two statements
of profits or loss and other comprehensive income, two separate statements of profit or loss
(if presented), two statements of cash flows and two statements of changes in equity, and IAS 1.38 and 38A
related notes. This shall include comparative information for narrative and descriptive
information if it is relevant to understanding the current period’s financial statements.
*** In such cases, a complete set of financial statements will include three statements of financial
IAS 1.10
position.
Presentation of statement of profit or loss and other comprehensive income and analysis of expenses
 An entity can present a single statement of profit or loss and other comprehensive income, with
profit or loss and other comprehensive income in two sections or as two linked statements. IAS 1.81A
When an entity present a single statement of profit or loss and other comprehensive income, with
profit or loss and other comprehensive income in two sections, the sections shall be presented
together, with the profit or loss section presented first followed directly by the other
comprehensive income section. When an entity present the profit or loss section in a separate
statement of profit or loss, the separate statement of profit or loss shall immediately precede the
statement of comprehensive income, which shall begin with profit or loss.
An entity shall present an analysis of expenses using a classification based on either the nature of
expenses or their function within the entity, whichever provides information that is reliable and IAS 1.99
more relevant. The main consideration in choosing an appropriate analysis for disclosure
purposes should be the entity’s accounting system and management reporting system.
In this illustration, the format adopted is two linked statements with analysis of expenses by their
function within the entity. An illustration of a statement of comprehensive income in a single IAS 1.104
statement with analysis of expenses by their nature is provided in Appendix A-1 Consolidated
statement of comprehensive income in one statement – illustrating the analysis of expenses by
nature. Where the former format is adopted (as in the case of this illustration), the entity shall
disclose additional information on the nature of expenses, including depreciation and amortisation
as well as employee benefits expense in the notes.


Commentary (continued):
Reporting of continuing and discontinued operations
 The separate reporting of continuing and discontinued operations in the statement of IFRS 5.30 and 33
comprehensive income is required only where there are discontinued operations as defined by
IFRS 5 Non-current Assets Held for Sale and Discontinued Operations.
An entity shall re-present the disclosures required for discontinued operations for prior periods IFRS 5.34
presented in the financial statements so that the disclosures relate to all operations that have
been discontinued by the end of the reporting period for the latest period presented.
On disposal of the disposal group, the gain or loss from discontinued operation presented on the IFRS 5.33.b.iii
statement of comprehensive income includes the gain or loss on disposal of the disposal group
constituting the discontinued operation.
Other additional disclosures
 Additional line items, heading and subtotals should be presented on the face of the statement of IAS 1.85
comprehensive income, when such presentation is relevant to the understanding of the entity’s
financial performance.
 Commentary on certain line items illustrated in the statement of comprehensive income
Interest income and dividend income

“Interest income” and “dividend income” exclude interest income and dividends respectively, IFRS 7.AGB5.e
from financial assets at fair value through profit or loss. XYZ Holdings (Singapore) Limited has
made a policy choice to include interest and dividend income in the net gains or net losses on
financial assets at fair value through profit or loss, instead of recognising them separately.
Research and development
“Research and development” costs represent the aggregate amount of research and development IAS 38.126 and 127
expenditure recognised as an expense during the period, including amortisation of deferred
development cost.
Share of results of associates and joint ventures
“Share of results of associates” and “share of results of joint ventures” are presented net of tax IAS 1.IG6
and non-controlling interests in the associates and joint ventures.
Terminology used
 Although IAS 1 uses the terms “other comprehensive income”, “profit or loss” and “total IAS 1.8
comprehensive income”, an entity may use other terms to describe the totals as long as the
meaning is clear. For example, an entity may use the term “net income” to describe profit or loss.


Tax effects related to each component of other comprehensive income IAS 1.91
 An entity may present components of other comprehensive income either:

(a) net of related tax effects, as illustrated in the statement of comprehensive income, or
(b) before related tax effects with one amount shown for the aggregate amount of income tax
relating to those components. 
 In this illustration, the share of other comprehensive income of associates relates to property
revaluation attributable to owners of the associates, which is an item that will not be reclassified to
profit or loss. If an entity has share of other comprehensive income of associates which relates to
items that may be reclassified subsequently to profit or loss, the item shall be presented under the
group of items that may be reclassified subsequently to profit or loss.
Additional illustrative disclosures:
Tax effects related to each component of other comprehensive income
 Extract of statement of comprehensive income illustrating other comprehensive income presented

at gross before related tax effects:
2018 2017
$’000 $’000
Other comprehensive income:
Items that will not be reclassified to profit or loss

Net fair value gains on equity instruments at fair value
through other comprehensive income 180 -
Net surplus on revaluation of freehold land and buildings 1,506 2,864
Share of gain on property revaluation of associates 75 12
Income tax relating to components of other comprehensive
income (319) (462)
1,442 2,414
Items that may be reclassified subsequently to profit or
loss
Net fair value gains on debt instruments at fair value
through other comprehensive income 80 -
Net fair value changes on debt instruments at fair value
through other comprehensive income reclassified to profit
or loss (30) -
Net fair value gains on available-for-sale financial assets - 135
Net fair value changes on available-for-sale financial assets IAS 1.90
reclassified to profit or loss - (11) IAS 12.81.ab
Foreign currency translation (181) (82)

Income tax relating to components of other comprehensive
income (6) (26)
(137) 16
Other comprehensive income for the year, net of tax 1,305 2,430
Either way, the amount of income tax relating to each component of other comprehensive
income must be disclosed either in the statement of comprehensive income or in the notes. In
this illustration, the entity has chosen to disclose the related tax effects in the Note 10 “Income
tax expense”.


Balance sheets 

As at 31 December 2018
Group Company
2018 31 December 1 January 2018 31 December 1 January
2017 2017 2017 2017
Note $'000 $’000 $’000 $'000 $’000 $’000

Assets
Non-current assets
Property, plant and equipment 13 30,718 31,064 28,155 1,079 603 497 IAS 1.54.a
Investment properties 14 4,645 3,955 3,825 - - - IAS 1.54.b
Intangible assets 15 2,419 1,333 1,368 - - - IAS 1.54.c
Land use rights 16 5,811 5,733 5,730 - - - IAS 1.55
Investment in subsidiaries 17 - - - 12,147 10,582 10,576 IAS 1.55
Investment in joint venture 18 1,674 1,515 1,364 - - - IAS 1.54.e
Investment in associates 19 10,595 10,291 10,099 - - - IAS -1.54.e
Deferred tax assets 20 470 463 455 21 26 20 IAS 1.54.o and 56
Other receivables 21 2,793 2,815 2,802 16,753 17,401 16,705 IAS 1.54.h
Investment securities 22 4,608 3,106 3,630 - - - IAS 1.54.d
63,733 60,275 57,428 30,000 28,612 27,798
Current assets
Development properties 24 2,900 1,728 1,666 - - - IAS 1.54.g
Inventories 25 23,458 22,642 24,536 - - - IAS 1.54.g
Right of return assets 2,089 1,285 856 - - - IFRS 15.B21
Prepaid operating expenses 122 250 312 53 122 135 IAS 1.55
Trade and other receivables 21 24,794 24,930 22,008 338 350 313 IAS 1.54.h
Contract assets 4 3,751 6,928 3,269 - - - IFRS 15.105
Capitalised contract costs 4 658 690 490 - - -
Investment securities 22 1,712 1,260 1,150 - - - IAS 1.54.d
Derivatives 26 170 105 95 - - - IAS 1-1.54.d
Cash and short-term deposits 27 6,117 4,858 3,668 4,621 4,145 3,790 IAS 1.54.i
65,771 64,676 58,050 5,012 4,617 4,238
Assets of disposal group classified IAS 1.54.j
as held for sale 11 2,270 - - 2,300 - - IFRS 5.38
68,041 64,676 58,050 7,312 4,617 4,238
Total assets 131,774 124,951 115,478 37,312 33,229 32,036
Equity and liabilities
Current liabilities
Provisions 28 801 295 155 - - - IAS 1.54.l
Deferred capital grants 29 300 210 150 - - - IAS 20.24
Income tax payable 2,914 6,417 5,999 1,447 2,115 2,322 IAS 1.54.n
Loans and borrowings 30 1,189 2,290 2,350 - - - IAS 1.54.m
Trade and other payables 31 17,367 14,965 15,488 470 414 388 IAS 1.54.k
Contract liabilities 4 926 1,309 1,255 - - - IFRS 15.105
Refund liabilities 2,480 5,333 3,796 - - - IFRS 15.B21
Other liabilities 32 3,659 2,579 3,067 1,166 446 261 IAS 1.54.m
Derivatives 26 22 - - - - - IAS 1.54.m
29,658 33,398 32,260 3,083 2,975 2,971
Liabilities directly associated with
disposal group classified as held IAS 1.54.p,
for sale 11 2,071 - - - - - IFRS 5.38
31,729 33,398 32,260 3,083 2,975 2,971
Net current assets 36,312 31,278 25,790 4,229 1,642 1,267
Non-current liabilities
Provisions 28 1,525 1,225 1,630 - - - IAS 1.54.l
Deferred capital grants 29 3,488 1,754 954 - - - IAS 20.24
Deferred tax liabilities 20 2,273 1,904 1,517 226 231 239 IAS 1.54.o and 56
Loans and borrowings 30 13,415 13,188 14,290 5,750 5,628 5,600 IAS 1.54.m
Other payables 31 200 - - - - - IAS 1.54.k
20,901 18,071 18,391 5,976 5,859 5,839
Total liabilities 52,630 51,469 50,651 9,059 8,834 8,810
Net assets 79,144 73,482 64,827 28,253 24,395 23,226
Equity attributable to owners of
the Company
Share capital 33(a) 11,090 9,665 9,510 11,090 9,665 9,510 IAS 1.54.r
Treasury shares 33(b) (159) - - (159) - - IAS 1.54.r
Retained earnings 58,804 55,978 50,564 16,700 14,309 13,424 IAS 1.54.r
Other reserves 7,223 5,859 3,233 622 421 292 IAS 1.54.r
Reserve of disposal group
classified as held for sale 11 128 - - - - - IFRS 5.38
77,086 71,502 63,307 28,253 24,395 23,226
Non-controlling interests 2,058 1,980 1,520 - - - IAS 1.54.q
Total equity 79,144 73,482 64,827 28,253 24,395 23,266
Total equity and liabilities 131,744 124,951 115,478 37,312 33,229 32,036

Balance sheets 
As at 31 December 2018
Commentary:
Complete set of financial statements
 Please refer to commentary no. 1 of the consolidated statement of comprehensive income.
 An entity shall disclose the amount expected to be recovered or settled after more than twelve IAS 1.61
months for each asset and liability line item that combines amounts expected to be recovered or
settled:
(a) no more than twelve months after the reporting period, and
(b) more than twelve months after the reporting period.
 An entity shall present current and non-current assets, and current and non-current liabilities, as IAS 1.60
separate classifications in its balance sheets in accordance with IAS 1.66 to IAS 1.67 except when a
presentation based on liquidity provides information that is reliable and more relevant. When that
exception applies, an entity shall present all assets and liabilities in order of liquidity.

Statements of changes in equity

changes in equity
Attributable to owners of the Company

Equity Premium Equity
attributable paid on Gain or loss component of Reserve of
to owners Foreign acquisition Employee on convertible disposal
of the Other Fair value Asset Statutory currency of non- share reissuance redeemable group Non-
2018 Equity, Company, Share Treasury Retained reserves, adjustment revaluation reserve translation controlling option of treasury preference classified as controlling
Group Note total total capital shares earnings total reserve reserve fund reserve interests reserve shares shares held for sale interests
$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
Opening balance at 1 January
2018 (FRS framework) 2.2 68,849 66,949 9,665 - 51,627 5,657 426 4,414 740 (344) - 341 - 80 - 1,900
Cumulative effects of adopting
SFRS(I) 4,392 4,312 - - 4,118 194 (8) - - 202 - - - - - 80 IAS 1.106.b
Opening balance at 1 January
2018 (SFRS(I) framework) 73,241 71,261 9,665 - 55,745 5,851 418 4,414 740 (142) - 341 - 80 - 1980
Profit for the year 4,956 4,776 – - 4,776 - - - - - - - - - - 180 IAS 1.106.d.i
Other comprehensive income 
IAS 1.106A, IAS

Net fair value gains on equity 1.106.d.ii, IFRS
instruments at FVOCI 130 130 – – – 130 130 – – – – – – – – – 7.20.a.vii
IAS 1.106A, IAS
Net fair value gains on debt 1.106.d.ii, IFRS
instruments at FVOCI 64 64 - - - 64 64 - - - - - -- - - - 7.20.a.viii
Net gains on fair value changes

of debt instruments at FVOCI IAS 1.106A, IAS
reclassified to profit or loss on 1.106.d.ii, IFRS
derecognition (20) (20) - - - (20) (20) - - - - - - - - - 7.20.a.viii
Net surplus on revaluation of IAS 1.106A, IAS

freehold land and buildings 1,250 1,250 – – – 1,250 – 1,250 – – – – – – – – 1.106.d.ii, IAS 16.77.f
IAS 1.106A, IAS
Foreign currency translation (181) (171) – – – (171) – – – (171) – – – – – (10) 1.106.d.ii, IAS 21.52.b
Share of other comprehensive IAS 1.106A, IAS

income of associates 62 62 – – – 62 - 62 – – – – – – – – 1.106.d.ii
Other comprehensive income
for the year, net of tax 1,305 1,315 – – - 1,315 174 1,312 – (171) – – – – – (10)
Total
r comprehensive income for
the year 6,261 6,091 - - 4,776 1,315 174 1,312 - (171) - - - – - 170 IAS 1.106.a



Contributions by and
distributions to owners IAS 1.106.d.iii
Shares issued for acquisition of a
subsidiary 33(a) 1,475 1,475 1,475 - - - - - - - - - - - - - IAS 1.106.d.iii
Share issuance expense 33(a) (50) (50) (50) - - - - - - - - - - - - - IAS 32.39
Grant of equity-settled share
options to employees 35 245 245 - - - 245 - - - - - 245 - - - - IFRS 2.50
Purchase of treasury shares 33(b) (254) (254) - (254) - - - - - - - - - - - - IAS 32.33
Treasury shares reissued
pursuant to employee share IFRS 2.50, IAS
option plans 33(b) 81 81 - 95 - (14) - - - - - (79) 65 - - - 32.33
Dividends on ordinary shares 43 (1,613) (1,613) - - (1,613) - - - - - - - - - - - IAS 1.107i
Total contributions by and
distributions to owners (116) (116) 1,425 (159) (1,613) 231 - - - - – 166 65 – - - IAS 1.106.d.iii
Changes in ownership interests in

subsidiaries IAS 1.106.d.iii
Acquisition of subsidiary 17 558 - - - - - - - - - - - - - - 558
Acquisition of non-controlling
interests without a change in
control 17 (800) (150) - - - (150) - - - - (150) - - - - (650)
Total changes in ownership
interests in subsidiaries (242) (150) - - - (150) - - - - (150) - - - - (92) IAS 1.106.d.iii
Total transactions with owners

in their capacity as owners (358) (266) 1,425 (159) (1,613) 81 - - - - (150) 166 65 - - (92) IAS 1.106.d.iii



Others
Reserve attributable to disposal
group classified as held for
sale 11 - - - - - (128) - (128) - - - - - - 128 - IFRS 5.38
Expiry of employee share options - - - - 30 (30) - - - - - (30) - - - - IFRS 2.50

Transfer to statutory reserve
fund - - - - (163) 163 - - 163 - - - - - - - IAS 1.106.d.iii
Transfer of fair value reserves of

equity instruments at FVOCI
upon disposal 29 (29) (29)
Total Others - - - - (104) (24) (29) (128) 163 - - (30) - - 128 -
Closing balance at 31 December

2018 79,144 77,086 11,090 (159) 58,804 7,223 563 5,598 903 (313) (150) 477 65 80 128 2,058


Equity
Equity component of
attributable Foreign Employee convertible
to owners of Other Fair value Asset Statutory currency share redeemable Non-
2017 Equity, the Company, Share Retained reserves, adjustment revaluation reserve translation option preference controlling
Group Note total total capital earnings total reserve reserve fund reserve reserve shares interests
$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
Opening balance at 1 January 2017 (FRS

framework) 2.2 62,458 61,018 9,510 48,477 3,031 328 2,000 613 (202) 292 - 1,440
Cumulative effects of adopting SFRS(I) 2,369 2,289 - 2,087 202 - - - 202 - - 80 IAS 1.106.b
Opening balance at 1 January 2017 (SFRS(I)

framework) 64,827 63,307 9,510 50,564 3,233 328 2,000 613 - 292 - 1520
Profit for the year 7,505 7,105 - 7,105 - - - - - - - 400 IAS 1.106.d.i
Other comprehensive income 

IAS 1.106A, IAS
Net fair value gain on available-for-sale financial 1.106.d.ii, IFRS
assets 98 98 - - 98 98 - - - - - - 7.20.a.ii
Net surplus on revaluation of freehold land and IAS 1.106A, IAS

buildings 2,404 2,404 - - 2,404 - 2,404 - - - - - 1.106.d.ii, IAS 16.77.f
IAS 1.106A, IAS

1.106.d.ii, IAS
Foreign currency translation (82) (142) - - (142) - - - (142) - - 60 21.52.b
IAS 1.106A, IAS

Share of other comprehensive income of associates 10 10 - - 10 - 10 - - - - - 1.106.d.ii
Other comprehensive income for the year, net of

tax 2,430 2,370 – – 2,370 98 2,414 – (142) – – 60
Total comprehensive income for the year 9,935 9,475 - 7,105 2,370 98 2,414 - (142) - - 460 IAS 1.106.a


Equity
Equity component of
attributable Foreign Employee convertible
to owners of Other Fair value Asset Statutory currency share redeemable Non-
2017 Equity, the Company, Share Retained reserves, adjustment revaluation reserve translation option preference controlling
Group Note total total capital earnings total reserve reserve fund reserve reserve shares interests
$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
Contributions by and distributions to owners IAS 1.106.d.iii
Grant of equity-settled share options to employees 35 150 150 - - 150 - - - - 150 - - IFRS 2.50
Exercise of employee share options 33(a) 72 72 155 - (83) - - - - (83) - - IFRS 2.50
Dividends on ordinary shares 43 (1,582) (1,582) - (1,582) - - - - - - - - IAS 1.107
Equity component of redeemable preference shares 80 80 - - 80 - - - - - 80 - IAS 32.28

Total transactions with owners in their capacity as
owners (1,280) (1,280) 155 (1,582) 147 - - - - 67 80 - IAS 1.106.d.iii
Others
Expiry of employee share options - - - 18 (18) - - - - (18) - - IFRS 2.50
Transfer to statutory reserve fund - - - (127) 127 - - 127 - - - - IAS 1.106.d.iii
Total others - - - (109) 109 - - 127 - (18) - -
Closing balance at 31 December 2017 73,482 71,502 9,665 55,978 5,859 426 4,414 740 (142) 341 80 1,980


Equity component
2018 Gain or loss on of convertible
Other reserves, Employee share reissuance of redeemable
Company  Note Equity, total Share capital Treasury shares Retained earnings total option reserve treasury shares preference shares
$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
Opening balance at 1 January 2018 (FRS framework) 24,395 9,665 - 14,309 421 341 - 80
Cumulative effects of adopting SFRS(I) (95) - - (95) - - - -
Opening balance at 1 January 2018 (SFRS(I) framework) 24,300 9,665 - 14,214 421 341 - 80
Profit for the year, representing total comprehensive income for the IAS 1.106.d.i, IAS
year 4,069 - - 4,069 - - - - 1.106.a
Shares issued for acquisition of a subsidiary 33(a) 1,475 1,475 - - - - - - IAS 1.106.d.iii
Share issuance expense 33(a) (50) (50) - - - - - - IAS 32.39
Grant of equity-settled share options to employees 35 245 - - - 245 245 - - IFRS 2.50
Expiry of employee share options - - - 30 (30) (30) - - IFRS 2.50
Purchase of treasury shares 33(b) (254) - (254) - - - - - IAS 32.33
Treasury shares reissued pursuant to employee share option plans 81 - 95 - (14) (79) 65 - IFRS 2.50, IAS 32.33
Dividends on ordinary shares 43 (1,613) - - (1,613) - - - - IAS 1.107
Total transactions with owners in their capacity as owners (116) 1,425 (159) (1,583) 201 136 65 - IAS 1.106.d.iii
Closing balance at 31 December 2018 28,253 11,090 (159) 16,700 622 477 65 80


Equity component
2017 Gain or loss on of convertible
Other reserves, Employee share reissuance of redeemable
Company  Note Equity, total Share capital Treasury shares Retained earnings total option reserve treasury shares preference shares
$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
Opening balance at 1 January 2017 23,226 9,510 - 13,424 292 292 - -
Profit for the year, representing total comprehensive income for the IAS 1.106.d.i , IAS
year 2,449 - - 2,449 - - - - 1.106.a
Grant of equity-settled share options to employees 35 150 - - - 150 150 - - IFRS 2.50
Exercise of employee share options 33(a) 72 155 - - (83) (83) - - IFRS 2.50
Expiry of employee share options - - - 18 (18) (18) - - IFRS 2.50
Equity component of redeemable preference shares 80 - - - 80 - - 80 IAS 32.28
Dividends on ordinary shares 43 (1,582) - - (1,582) - - - - IAS 1.107
Total transactions with owners in their capacity as owners (1,280) 155 - (1,564) 129 49 - 80 IAS 1.106.d.iii
Closing balance at 31 December 2017 24,395 9,665 - 14,309 421 341 - 80


Commentary:
Analysis of other comprehensive income for each component of equity in the statement of changes in equity
 IAS 1 Presentation of Financial Statements requires an analysis of other comprehensive income for
each component of equity to be presented either in the statement of changes in equity or in the notes IAS 1.106.d.ii
to the financial statements. IAS 1.106A
In this illustration, the Group has chosen to present an analysis of other comprehensive income for
each component of equity in the statement of changes in equity.
Statement of changes in equity for the company
 Presentation of the statement of changes in equity for the Company when consolidated financial
statements are presented is optional. Information relating to the equity items presented in the
Company’s balance sheet may be presented in the notes to the financial statements instead.

Consolidated cash flow statement 

2018 2017
Consolidated cash flow statement
Note $'000 $'000 IAS 7.18.b

Operating activities
Profit before tax from continuing operations 7,057 9,426
Loss before tax from discontinued operation 11 (551) (193)
Profit before tax, total 6,506 9,233
Adjustments for: IAS 7.20.b and c
Amortisation of deferred capital grant 29 (239) (180)
Amortisation of land use rights 16 132 130
Amortisation and impairment of intangible assets 15 420 252
Depreciation and impairment of property, plant and equipment 13 3,543 2,838
Grant of equity-settled share options to employees 35 245 155
Net fair value gains on investment properties 14 (489) (129)
Net fair value gains on held for trading investment securities and
derivatives 6 (298) (151)
Net fair value gains on FVOCI, available-for-sale financial assets
(transferred from equity on disposal of investment securities) 6 30 (15)
Net gain on remeasuring previously held equity interest in associates to fair
value on business combination 140 -
Fair value adjustment of contingent consideration for a business
combination  17 235 –
Impairment loss on investment securities 22 70 210
Impairment loss on trade receivables and contract assets 125 215
Net loss/(gain) on disposal of property, plant and equipment 76 (120)
Finance costs 1,715 1,512
Dividend income from investment securities (526) (406)
Interest income (430) (327)
Loss recognised on re-measurement to fair value less costs to sell 11 450 –
Provisions 756 (265)
Share of results of joint venture and associates (808) (450)
Amortisation of capitalised contract costs 210 285
Accretion of interests for bonds and convertible bonds 122 154
Unrealised exchange (gain)/loss (70) (84) IAS 7.28
Total adjustments 5,409 3,624
Operating cash flows before changes in working capital 11,915 12,857
Changes in working capital IAS 7.20.a
Increase in development property (1,172) (62)
Increase in capitalised contract costs (178) (485)
Increase in inventories and rights of return assets (868) 1,465
Decrease/(increase) in trade and other receivables and contract assets 4,299 (6,809)
Decrease/increase in trade and other payables, contract liabilities and
refund liabilities (1,872) 1,068
Decrease in prepaid operating expenses 128 62
Increase/(decrease) in other liabilities 395 (488)
Total changes in working capital 732 (5,249)
Cash flows from operations 12,647 7,608
Interest received 430 327 IAS 7.31
Interest paid (1,675) (1,695) IAS 7.31
Income taxes paid (4,839) (931) IAS 7.35
Net cash flows from operating activities 6,563 5,309 IAS 7.10


2018 2017
Note $'000 $'000

Investing activities IAS 7.21
Net cash inflow on acquisition of a subsidiary 17 217 – IAS 7.39
Dividend income from investment securities 526 406 IAS 7.31
Proceeds from disposal of investment securities and derivatives 239 779 IAS 7.16.d
Proceeds from government grants 29 2,040 1,030 IAS 20.28
Proceeds from disposal of property, plant and equipment 6,867 1,559 IAS 7.16.b
Purchase of investment securities (3,249) (450) IAS 7.16.c
Purchase of property, plant and equipment 13 (7,426) (4,323) IAS 7.16.a
Subsequent expenditure on investment properties 14 (500) – IAS 7.16.a
Additions to intangible assets 15 (200) (200) IAS 7.16.a
Net cash flows generated from/(used in) investing activities (1,486) (1,199) IAS 7.10
Financing activities IAS 7.21

Acquisition of non-controlling interests 17 (800) – IAS 7.42A
Dividends paid on ordinary shares 43 (1,613) (1,582) IAS 7.31
Purchase of treasury shares 33(b) (254) – IAS 7.17.b
Proceeds from re-issuance of treasury shares 33(b) 95 – IAS -7.17.a
Proceeds from exercise of employee share options – 72 IAS 7.17.a
Proceeds from loans and borrowings 1,540 409 IAS 7.17.c
Share issuance expense 17 (50) –
Repayment of loans and borrowings (1,355) (1,670) IAS 7.17.d
Repayment of obligations under finance leases (135) (115) IAS 7.17.e
Net cash flows (used in)/from financing activities (2,572) (2,886) IAS 7.10
Net increase in cash and cash equivalents 2,505 1,224

Effect of exchange rate changes on cash and cash equivalents  (50) (42) IAS 7.28
Cash and cash equivalents at 1 January 3,414 2,232 IAS 7.45
Cash and cash equivalents at 31 December 27 5,869 3,414 IAS 7.45


Presentation of consolidated cash flow statement using direct method
 In this illustration, the consolidated cash flow statement is presented using indirect method whereby IAS 7.18
profit or loss is adjusted for the effects of non-cash transactions, deferrals, accruals and investing or
financing cash flows. IAS 7.18 allows entities to report cash flows from operating activities using
either the direct method or indirect method. The cash flow from operating activities prepared using
the direct method is illustrated below:
IAS 7.App A
Group
2018 2017
$'000 $'000
Operating activities
Receipts from customers XXX XXX
Payments to suppliers and employees (XXX) (XXX)
Cash generated from operations XXX XXX
Interest paid (XXX) (XXX)
Income taxes paid (XXX) (XXX)
Net cash flows from/(used in) operating activities XXX (XXX)
The cash flow from financing and investing activities under the direct method are identical to that
prepared under indirect method.
Disposal of subsidiary
 In this illustration, there is no disposal of subsidiary or other business units during the financial year. IAS 7.40.a-d
If there is such disposal, an entity should disclose:
(a) The total disposal consideration;
(b) The portion of the disposal consideration discharged by means of cash and cash equivalents;
(c) The amount of cash and cash equivalents in the subsidiary or business unit disposed of; and
(d) The amount of the assets and liabilities other than cash and cash equivalents in the subsidiary or
business unit disposed of, summarised by each major category.
IAS 7.40A
An investment entity, as defined in IFRS 10 Consolidated Financial Statements, need not apply (c) and
(d) above to an investment in subsidiary that is required to be measured at fair value through profit or
loss.
Illustrative note disclosure:
The company disposed of XXX Limited, a wholly owned subsidiary, on 30 November 2018 at its IAS 7.40.b
carrying value. The disposal consideration was fully settled in cash.
The value of assets and liabilities of XXX Limited recorded in the consolidated financial IAS 7.40.d
statements as at 30 November 2018, and the cash flow effect of the disposal were:
$’000
Property, plant and equipment XXX
Trade and other receivables XXX
Inventories XXX
Cash and cash equivalents XXX IAS 7.40.c
XXX
Trade and other payables (XXX)
Income tax payable (XXX)
Carrying value of net assets XXX
Total consideration XXX IAS 7.40.a and b

IAS 7.40.c
Cash and cash equivalents of the subsidiary (XXX)
IAS 7.39
Net cash inflow on disposal of a subsidiary XXX


Commentary:
Contingent consideration for business combination
 In this illustration, there is no payment of contingent consideration for business combination during
the year. For illustrative disclosure of contingent consideration for business combination in the year
when the amount is paid and its impact on the presentation in the statement of cash flows, please
refer to commentary no.1 of Note 32 Other liabilities.
Foreign currency translation differences
 Foreign currency translation differences that arise on translation of foreign currency cash and cash IAS 7.28
equivalents should be reported in the consolidated cash flow statement in order to reconcile opening
and closing balances of cash and cash equivalents, separately from operating, financing and investing
cash flows.
 Cash flows arising from transactions in a foreign currency shall be recorded in an entity’s functional IAS 7.25
currency by applying to the foreign currency amount the exchange rate between the functional IAS 7.26
currency and the foreign currency at the date of the cash flow. Cash flows of a foreign subsidiary
shall be translated at the exchange rates between the functional currency and the foreign currency at
the date of the cash flows. For a group entity that has overseas investments with functional currency
that is different from the presentation currency of the Group, the individual cash flow line items may
include foreign currency translation differences that should be adjusted to remove the non-cash
movement in the individual cash flow line items.

Notes to the financial statements

The illustrative disclosures in XYZ Holdings (Singapore) Limited and its subsidiaries are IAS 1.113
based on one sample format of how the notes to the financial statements can be IAS 1.114
structured based on IAS 1.114.c.

Entities are encouraged to tailor its disclosures including the structure of the notes to
the financial statements according to each entity’s specific facts and circumstances.
Commentary:
Enhancing disclosure effectiveness

 There have been significant discussions about ‘disclosure overload’ in financial reporting with the
increased volume of financial statement disclosures as transactions and the requirements of
accounting standards become more complex.
Entities can consider improving disclosure effectiveness by using alternative formats that may better IAS 1.113
communicate the links between different pieces of financial information so as to permit users of IAS 1.114
financial statements to identify the relevant information more easily, and therefore enhance the
understandability and comparability of financial statements. Tailoring disclosures to the entity-specific
facts and circumstances may not reduce the length of the financial statements, but it should reduce the
clutter and, in turn, enhance the usefulness of the financial statements.
In addition, entities should consider their own specific circumstances when determining which IAS 1.30A
disclosures to include, based on its specific materiality considerations. If a particular transaction or
item is immaterial to the reporting entity, then it is not relevant, in which case, IFRS allows for non-
disclosure. If immaterial information is included in the financial statements, the sheer volume of
information can potentially reduce the transparency and usefulness of the financial statements as the
material, and thus relevant, information, loses prominence.
For an alternative format of the notes structure, please refer to the EY global publication Good Group
(International) Limited – Alternative Format that is available at www.ey.com. This alternative notes
structure is based on the nature of items and the entity’s view of importance of the items, such that the
significant accounting policies, judgements, key estimates and assumptions have also been placed
together in the same note as the related qualitative and quantitative disclosures, to provide a more
holistic discussion to users of the financial statements.


1. Corporate information 
XYZ Holdings (Singapore) Limited (the Company) is a limited liability company IAS 1.138.a and c
IAS 24.13
incorporated and domiciled in Singapore and is listed on the Singapore Exchange. The CA 201.10
immediate and ultimate holding company is Good Group (International) Ltd. 
The registered office and principal place of business of the Company is located at Level IAS 1.138.a
18, One Raffles Quay, North Tower, 048583, Singapore.
The principal activity of the Company is investment holding. The principal activities of the IAS 1.138.b
subsidiaries, associates and joint venture are disclosed in Note 17 to 19 to the financial
statements.
Commentary:
Disclosures required by IAS 1.138
 The following information may be provided in the notes to the financial statements or IAS 1.138
disclosed elsewhere in information published with the financial statements:
- the domicile and legal form of the entity, its country of incorporation and the address of
its registered office (or principal place of business, if different from the registered
office);
- a description of the nature of the entity’s operations and its principal activities; and
- the name of the parent and ultimate parent of the Group.
Disclosures of name of the ultimate controlling party
IAS 24.13
 IAS 24 requires an entity to disclose the name of the entity’s parent and, if different, the
ultimate controlling party. The ultimate controlling party can be either an entity or a person.
If neither the entity’s parent nor the ultimate controlling party produces consolidated
financial statements available for public use, the name of the next most senior parent that
does so shall also be disclosed.

Change in entity’s name during the financial year
 If the entity changes its name during the financial year, the change shall be disclosed. IAS 1.51.a
Illustrative disclosure where the entity changes its name during the financial year:
With effect from [insert effective date of change], the name of the company was changed
from [XXX] to [XXX].
2. Summary of significant accounting policies IAS 1.117
2.1 Basis of preparation 
The consolidated financial statements of the Group and the balance sheet and IAS 1.16, IAS 1-
1.51.b, IAS
statement of changes in equity of the Company have been prepared in accordance with
1.112.a
Singapore Financial Reporting Standards (International) (SFRS(I)). SGX 1207.5.d
For all periods up to and including the year ended 31 December 2017, the Group
prepared its financial statements in accordance with Financial Reporting Standards in
Singapore (FRS). These financial statements for the year ended 31 December 2018 are
the first the Group has prepared in accordance with SFRS(I). Refer to Note 2.2 for
information on how the Group adopted SFRS(I).
The financial statements have been prepared on the historical cost basis except as IAS 1.117.a
disclosed in the accounting policies below.
The financial statements are presented  in Singapore Dollars (SGD or $) and all values IAS 1.51.d and e
in the tables are rounded to the nearest thousand ($’000), except when otherwise
indicated.


2. Summary of significant accounting policies (continued)
2.1 Basis of preparation  (continued)
Commentary:
Going concern uncertainty
 When preparing financial statements, management shall make an assessment of an IAS 1.25
IAS 1.122
entity’s ability to continue as a going concern. Where the effect of the judgement made in
relation to the entity’s ability to continue as a going concern has significant effect on the
amounts recognised in the financial statements, the judgement made should be disclosed.
Financial statements shall be prepared on a going concern basis unless management IAS 1-1.25
either intends to liquidate the entity or to cease trading, or has no realistic alternative but
to do so. When management is aware, in making its assessment, of material uncertainties
related to events or conditions that may cast significant doubt upon the entity’s ability to
continue as a going concern, those uncertainties shall be disclosed. 
Functional and presentation currency
 When the presentation currency is different from the functional currency of the Company, IAS 21.53
that fact shall be stated, together with disclosure of the functional currency and the
reasons for using a different presentation currency.
Going concern uncertainty
 Illustrative disclosure where the ability of the company to continue as a going concern is
dependent on the holding company undertaking to provide continuing financial support to
the company to enable it to continue as a going concern:
The Company incurred a net loss of $XXX (2017: $XXX) during the financial year
ended 31 December 2018 and as at that date, the Company’s current and total
liabilities exceeded its current and total assets by $XXX (2017: $XXX) and $XXX
(2017: $XXX) respectively. These factors indicate the existence of a material
uncertainty which may cast significant doubt about the Company’s ability to continue
as a going concern. The ability of the Company to continue as a going concern
depends on the holding company undertaking to provide continuing financial support
to enable the Company to continue as a going concern.
If the Company is unable to continue in operational existence for the foreseeable
future, the Company may be unable to discharge its liabilities in the normal course of
business and adjustments may have to be made to reflect the situation that assets
may need to be realised other than in the normal course of business and at amounts
which could differ significantly from the amounts at which they are currently recorded
in the balance sheet. In addition, the Company may have to reclassify non-current
assets and liabilities as current assets and liabilities. No such adjustments have been
made to these financial statements.


2.2 First-time adoption of Singapore Financial Reporting Standards (International) IAS 8.28
(SFRS(I))
These financial statements for the year ended 31 December 2018 are the first the
Group and the Company have prepared in accordance with SFRS(I). Accordingly, the
Group and the Company have prepared financial statements that comply with SFRS(I)
applicable as at 31 December 2018, together with the comparative period data for the
year ended 31 December 2017, as described in the summary of significant accounting
policies. On preparing the financial statements, the Group’s and the Company’s
opening balance sheets were prepared as at 1 January 2017, the Group and the
Company’s date of transition to SFRS(I). 
The principal adjustments made by the Group on adoption of SFRS(I) and the adoption
of the new standards that are effective on 1 January 2018 are disclosed below.
Exemptions applied on adoption of SFRS(I)

SFRS(I) allows first-time adopters exemptions from the retrospective application of
certain requirements under SFRS(I). The Group has applied the following exemptions:
 SFRS(I) 3 Business Combinations has not been applied to either acquisitions of IFRS 1.C1
subsidiaries that are considered businesses under SFRS(I), or acquisitions of

interests in associates and joint ventures that occurred before 1 January 2017.
The carrying amounts of assets and liabilities at the date of transition to SFRS(I) is
the same as previously reported under FRS.
 SFRS(I) 1-21 The Effects of Changes in Foreign Exchange Rates has not been IFRS 1.C2
applied retrospectively to fair value adjustments and goodwill from business
combinations that occurred before the date of transition to SFRS(I). Such fair value
adjustments and goodwill are treated as assets and liabilities of the parent rather
than as assets and liabilities of the acquiree. Therefore, those assets and liabilities
are already expressed in the functional currency of the parent or are non-monetary
foreign currency items and no further translation differences occur.
 Cumulative currency translation differences for all foreign operations are deemed IFRS 1.D13
to be zero at the date of transition, 1 January 2017. As a result, an amount of
$202,000 was adjusted against the opening retained earnings as at 1 January
2017.
 The comparative information do not comply with SFRS(I) 9 Financial Instruments or
SFRS(I) 7 Financial Instruments: Disclosures to the extent the disclosures relate to
items within the scope of SFRS(I) 9. 
Commentary:
 IFRS 1.21 requires an entity’s first IFRS financial statements to include at least three
statements of financial position, two statements of profit or loss and other
comprehensive income, two statements of cash flows and two statements of changes in
equity and related notes, including comparative information for all statements
presented.
 IFRS 1.E1 and E2 Exemptions from the requirement to restate comparative information
for IFRS 9 allows the comparative information in the entity’s first IFRS financial
statements need not comply with IFRS 7 Financial Instruments: Disclosure to the extent
that the disclosures required by IFRS 7 relate to items within the scope of IFRS 9.
Entities applying the exemption would apply the requirements of its previous GAAP to
financial instruments up to the financial year ended 31 December 2017.


2.2 First-time adoption of (SFRS(I)) (continued)
New accounting standards effective on 1 January 2018 

IAS 8.28
The accounting policies adopted are consistent with those previously applied under FRS
except that in the current financial year, the Group has adopted all the SFRS(I) which
are effective for annual financial periods beginning on or after 1 January 2018. Except
for the impact arising from the exemptions applied as described above and the
adoption of SFRS(I) 9 and SFRS(I) 15 described below, the adoption of these standards
did not have any material effect on the financial performance or position of the Group
and the Company.
Commentary:
 Standards effective for annual period beginning on or after 1 January 2018
The following Standards and Interpretations are effective for the annual period
beginning on or after 1 January 2018:
 IFRS 9 Financial Instruments
 IFRS 15 Revenue from Contracts with Customers
 Improvements to IFRSs (December 2016)
 Amendments to IAS 28 Measuring an Associate or Joint Venture at Fair Value
 Amendments to IFRS 2 Classification and Measurement of Share-based Payment
Transactions
 Amendments to IAS 40 Transfers of Investment Property
 IFRS INT 22 Foreign Currency Transactions and Advance Considerations
 IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors requires the
disclosure of the amount of the adjustment for the current period and each prior period
(to the extent practicable) upon initial application of a Standard or an Interpretation.
The disclosures relating to First-time adoption of Singapore Financial

Reporting Standards (International) (SFRS(I)) above are based on the
specific circumstances of XYZ Holdings (Singapore) Limited and may not be
applicable or relevant to other entities. Each entity should customise the
information disclosed according to the specific circumstances.


SFRS(I) 9 Financial Instruments 

On 1 January 2018, the Group adopted SFRS(I) 9 Financial instruments, which is IAS 8.28.a
effective for annual periods beginning on or after 1 January 2018.
The changes arising from the adoption of SFRS(I) 9 have been applied retrospectively. IFRS 1.E1
IFRS 1.E2
The Group has elected to apply the exemption in SFRS(I) 1 and has not restated
comparative information in the year of initial application. The impact arising from
SFRS(I) 9 adoption was included in the opening retained earnings at the date of initial
application, 1 January 2018. The comparative information was prepared in accordance
with the requirements of FRS 39.
Classification and measurement
SFRS(I) 9 requires debt instruments to be measured either at amortised cost, fair value IAS 8.28.c
IFRS 7.42J
through other comprehensive income (FVOCI) or fair value through profit or loss
(FVPL). Classification of debt instruments depends on the entity’s business model for
managing the financial assets and whether the contractual cash flows represent solely
payments of principal and interest (SPPI). An entity’s business model is how an entity
manages its financial assets in order to generate cash flows and create value for the
entity either from collecting contractual cash flows, selling financial assets or both. If a
debt instrument is held to collect contractual cash flows, it is measured at amortised IFRS 9.4.1.2
cost if it also meets the SPPI requirement. Debt instruments that meet the SPPI
requirement that are held both to collect the assets’ contractual cash flows and to sell IFRS 9.4.1.2A
the assets are measured at FVOCI. Financial assets are measured at FVPL if they do
not meet the criteria of FVOCI or amortised cost.
The assessment of the business model and whether the financial assets meet the SPPI IFRS 1.B8
requirements was made as of 1 January 2018, and then applied retropectively to those
financial assets that were not derecognied before 1 January 2018.
The Group’s debt instruments have contractual cash flows that are solely payments of
principal and interest. The Group has a mixed business model. Debt instruments that
were measured at amortised cost previously are held to collect contractual cash flows,
and accordingly measured at amortised cost under SFRS(I) 9. For debt instruments
that were measured at FVOCI previously, the Group’s business model is to hold the
debt instrument to collect contractual cash flows and sell, and accordingly measured at
FVOCI when it applies SFRS(I) 9. There is no significant impact arising from
measurement of these instruments under SFRS(I) 9.
SFRS(I) 9 requires all equity instruments to be carried at fair value through profit or
loss, unless an entity chooses on initial recognition, to present fair value changes in
other comprehensive income.
For equity securities, the Group continues to measure its currently held-for-trading
equity securities and one of its available-for-sale (AFS) quoted equity securities at
FVPL. The Group elects to measure its currently held AFS unquoted equity securities at
FVOCI. As a result of the change in measurement of the Group’s quoted equity
securities previously measured at FVOCI to FVPL, the fair value adjustment reserve of
$80,000 related to those investments that were previously presented under the fair
value adjustment reserve were transferred to retained earnings as at 1 January 2018.


SFRS(I) 9 Financial Instruments (continued) 

Classification and measurement
For the previously held AFS unquoted equity securities measured at FVOCI, cumulative IAS 8.28.c
impairment charge of $35,000 previously recognised in profit or loss were reclassified
from retained earnings to fair value adjustment reserve as at 1 January 2018. In
addition, the Group currently measures one of its investments in unquoted equity
securities at cost. Upon adoption of SFRS(I) 9, the Group measures the unquoted
equity securities at FVOCI. The impact arising from this change resulted in an increase
in carrying value of $65,000 to the unquoted equity securities with a corresponding
adjustment to fair value adjustment reserve as at 1 January 2018.
Impairment
SFRS(I) 9 requires the Group to record expected credit losses on all of its financial
assets measured at amortised cost or FVOCI and financial guarantees. The Group
previously recorded impairment based on the incurred loss model when there is
objective evidence that a financial asset is impaired.
Upon adoption of SFRS(I) 9, the Group recognised additonal impairment on the Group’s
trade receivables of $293,000, contract assets of $15,000 and loans to associates and
fellow subsidiaries carried at amortised costs of $37,000. Debt instrument held at
amortised cost and debt instruments at fair value through OCI requires an additional
impairment of $10,000 and $25,000 respectively. Additional impairment on finacial
guarantee of $2,000 were also recognised.
The additional impairment recognised arising from adoption of SFRS(I) 9 above
resulted in a corresponding decrease in retained earnings of $382,000 as at 1 January
2018.
The Company recognised an additional impairment on the Company’s amounts due
from subsidiaries, loans to associates and loans to a fellow subsidiary of $66,000,
$22,000 and $15,000 upon adoption of SFRS(I) 9 as at 1 January 2018. Additional
impairment on the Company’s finacial guarantee of $10,000 were also recognised.
Tax adjustments and other adjustments
Upon adoption of SFRS(I) 9, the Group’s investment in joint venture and investment in
associates as at 1 January 2018 decreased by $2,000 and $3,000 respectively with a
corresponding adjustment to retained earnings of $5,000.
The corresponding tax impact to the Group arising from the adoption of SFRS(I) 9
resulted in an increase in deferred tax liabilities, fair value reserves and retained
earnings of $11,000, $7,000 and $47,000 respectively and a corresponding decrease
in tax payable amounting to $67,000.
The corresponding tax impact to the Company arising from the adoption of SFRS(I) 9
resulted in an decrease in tax payable of $18,000 and a corresponding increase in
retained earnings of $18,000 respectively.


The Group has assessed which business model apply to the financial assets held by the Group at 1 January 2018 and has classified its financial instruments
into the appropriate categories in accordance with SFRS(I) 9. The effects, before tax impact are as follows: 
IFRS 7.42I and J
Financial assets: Group IFRS 7.42O
Measurement category FRS 39 Re- Re- SFRS(I) 9 Retained Fair value

carrying classifications measurements carrying earnings reserves
amount on 31 amount on 1 effect on 1 effect on 1
December January January January
2017 $’000 $’000 2018 2018 2018
$’000 $’000 $’000 $’000
FVPL 1,260 - - 1,260 - -
Reclassified from AFS - 848 - 848 72 (72)
FVPL balances, reclassifications and remeasurements at 1 1,260 848 - 2,108 72 (72)

January 2018
FVOCI 1,856 - - 1,856 - -

Reclassified from AFS equity securities carried at cost - 600 65 665 - -
Reclassified to FVPL - (848) - (848) - -
Reversal of impairment losses for equity instruments - - - - 35 (35)
FVOCI balances, reclassifications, remeasurements at 1 January 1,856 (248) 65 1,673 35 (35)
2018
The initial application of SFRS(I) 9 does not have any reclassification effect to the Company’s financial statements.


2.2 First-time adoption of SFRS(I)) (continued)
Impairment IFRS 7.42P
The reconciliation for loss allowances for the Group are as follow:
Group
Trade Contract Debt Debt Loans to Financial

receivables assets instruments instruments associates guarantees
carried at carried at and fellow
amortised cost FVOCI subsidiaries
carried at
amortised
cost
$’000 $’000 $’000 $’000 $’000 $’000
Opening loss allowance as at 460 - - 25 - -

1 January 2018
Provision for financial - - - - - 8
guarantee as at 1 January
2018
Amount restated through 293 15 10 25 37 2
opening retained earnings
Adjusted loss allowance 753 15 10 50 37 10
The reconciliation for loss allowances for the Company are as follow:
Company
Loans to Financial
subsidiaries, guarantees
associates and
fellow subsidiaries
carried at
amortised cost
$’000 $’000
Opening loss allowance as at 1 January 2018 - -

Provision for financial guarantee as at 1 January 2018 - 100
Amount restated through opening retained earnings 103 10
Adjusted loss allowance 103 110


Commentary
IFRS 1.E1
 In this illustration, the Group has elected to apply the exemption under E1 of IFRS 1
which allows entity not to comply with IFRS 7 and IFRS 9, to the extent that the
disclosures required by IFRS 7 relate to items within the scope of IFRS 9, in the first year
of transition to IFRS.
 In this illustration, the Group does not have any financial assets and financial liabilities
that were previously designated and measured at fair value through profit or loss but are
no longer so designated at the date of initial application of IFRS 9.
If an entity has any financial assets and financial liabilities at fair value through profit or
loss but are no longer so designated at the date of initial application of IFRS 9, the entity
is required to disclose
(i) the amount of these financial assets and financial liabilities, distinguishing between IFRS 7.42I.c
those that IFRS 9 requires an entity to reclassify and those that an entity elects to
reclassify at the date of initial application.
(ii) the effective interest rate determined on the date of initial application IFRS 7.42N.a
(iii) the interest revenue or expense recognised IFRS 7.42N.b
The disclosures in item (ii) and (iii) shall be made for each reporting period until IFRS 7.42N
derecognition if the fair value of a financial asset or a financial liability is treated as the
new gross carrying amount at the date of initial application. Otherwise, the disclosures
need not be made after the annual reporting period in which the entity initially applies
IFRS 9.
 In this illustration, the Group does not have any financial assets and financial liabilities IFRS 7.42M
that have been reclassified so that they are measured at amortised cost and, in the case
of financial assets, that have been reclassified out of fair value through profit or loss so
that they are measured at fair value through other comprehensive income, as a result of
transition to IFRS 9.
If an entity has such reclassifications, IFRS 7 requires the disclosures of
(i) The fair value of the financial assets or financial liabilities at the end of the reporting
IFRS 7.42M.a
period; and
(ii) The fair value gain or loss that would have been recognised in profit or loss or other IFRS 7.42M.b
comprehensive income during the reporting period if the financial assets or financial
liabilities had not been reclassified.


SFRS(I) 15 Revenue from Contracts with Customers

IAS 8.28.a
The Group adopted SFRS(I) 15 which is effective for annual periods beginning on or IFRS 15.C1
after 1 January 2018.
The Group applied SFRS(I) 15 retrospectively and has elected to apply the exemption
in SFRS(I) 1 to apply the following practical expedients in accordance with the
transition provisions in SFRS(I) 15:
IFRS 15.C5.a
 For completed contracts, the Group has not restated contracts that begin and end
within the same year or are completed contracts at 1 January 2017. Had the
Group elected not to apply this practical expedient, the amount of revenue IFRS 15.C6.b
recorded for the prior year would have been lower;
IFRS 15.C5.b
 For completed contracts that have variable consideration, the Group has used the
transaction price at the date the contract was completed instead of estimating
variable consideration amounts in the comparative year ended 31 December
2017. Had the Group elected not to apply this practical expedient, the amount of IFRS 15.C6.b
revenue recorded for the prior year would have been lower;
IFRS 15.C5.d
 For the comparative year ended 31 December 2017, the Group has not disclosed
the amount of the transaction price allocated to the remaining performance
obligations and an explanation of when the corresponding revenue is expected to
be recognised.
IAS 8.28.c
The Group is in the business of sales of electronics equipment, installation of fire
prevention equipment, property development and construction. The key impact of
adopting SFRS(I) 15 is detailed as follows:
a) Sale of electronic equipment
(i) Variable consideration

For the sale of electronics equipment, some contracts with customers provide a
right of return, trade discounts or volume rebates. Such provisions give rise to
variable consideration under SFRS(I) 15. The Group previously recognised revenue
from the sale of goods measured at the fair value of the consideration received or
receivable, net of returns and allowance, trade discounts and volume rebates.
Under SFRS(I) 15, variable consideration is estimated and is constrained to the
extent that it is highly probable that a significant reversal in the amount of
cumulative revenue recognised will not occur when the associated uncertainty is
subsequently resolved.
 Volume rebates
The Group provides retrospective rebates to some of its customers if the
customers reach a certain threshold of purchase. Before the adoption of
SFRS(I) 15, the Group estimated the probability-weighted average amount of
rebates and included a provision for rebates in trade and other payables.
Under SFRS(I) 15, retrospective volume rebates give rise to variable
consideration. To estimate the variable consideration to which it will be
entitled, the Group applied the “most likely amount method” for contracts
with a single volume threshold and the ‘expected value method’ for contracts
with more than one volume threshold. Upon adoption of SFRS(I) 15, the Group
recognised refund liabilities of $2,598,000 for the expected future rebates on
sale of goods which consideration have been received from customers as at 1
January 2017. The Group also derecognised the provision included in trade
and other payables of $1,792,000, and reduced the retained earnings for the
difference of $806,000 as at 1 January 2017.


SFRS(I) 15 Revenue from Contracts with Customers (continued)

 Volume rebates (continued)
The Group’s balance sheet as at 31 December 2017 was restated, resulting in
recognition of refund liabilities of $3,695,000 and decreases in trade and
other payables and retained earnings of $2,407,000 and $1,288,000
respectively. The profit or loss for the year ended 31 December 2017 was
also restated resulting in decrease in revenue of $482,000.
 Rights of return
The Group previously recorded a provision for the net margin arising from
expected returns, with the initial carrying amount of goods expected to be
returned was included in inventories. Under SFRS(I) 15, the Group estimates
the amount of expected returns in determining the transaction price and
recognises revenue based on the amounts to which the Group expects to be
entitled through the end of the return period. The Group recognises the
amount of expected returns as a refund liability, representing its obligation to
return the customer’s consideration. Separately, the Group recognises a right
of return asset for the right to recover the returned goods.
Upon adoption of SFRS(I) 15, the Group reclassified trade and other payables
of $1,087,000 to refund liabilities and inventories of $764,000 to right of
return assets as at 1 January 2017. In addition, the remeasurement resulted
in additional refund liabilities of $111,000 and right of return assets of
$92,000 in the balance sheet as at 1 January 2017. As a result of these
adjustments, retained earnings as at 1 January 2017 decreased by $19,000.
recognition of right of return assets and refund liabilities of $1,285,000 and
$1,638,000, respectively and decreases in trade and other payables,
inventories and retained earnings of $1,562,000, $1,258,000 and $49,000
respectively. The profit or loss for the year ended 31 December 2017 was
also restated, resulting in a decrease in revenue and cost of sales of $73,000
and $43,000.
(ii) Service-type warranty
The Group offers customers the option to separately purchase extended warranty
for electronic equipment sold. The extended warranty is a distinct service to the
customer in addition to the assurance that the product complies with agreed-upon
specifications. Previously, the Group recognised all warranty-related costs as a
provision for warranty. Under SFRS(I) 15, the Group accounts for a service-type
warranty as a separate performance obligation to which the Group allocates a
portion of the transaction price. The portion of the transaction price allocated to
the service-type warranty is initially recorded as a contract liability and recognised
as revenue over the period the warranty services are provided.
Upon adoption of SFRS(I) 15, the Group recognised contract liabilities of
$313,000 related to unfulfilled extended warranties as at 1 January 2017.
Warranty provisions of $268,000 were derecognised and the differences of
$45,000 was recognised as a decrease in retained earnings as at 1 January 2017.
The Group’s balance sheet as at 31 December 2017 was restated, resulting in the
recognition of contract liabilities of $723,000 and decreases in provisions and
retained earnings of $616,000 and $107,000 respectively. The statement of
profit or loss for the year ended 31 December 2017 was also restated, resulting in
decreases in revenue and cost of sales of $407,000 and $345,000 respectively.



b) Sale of development properties
(i) Timing of revenue recognition
The Group is in the business of constructing and developing residential and
commercial properties. The Group previously recognised revenue from the sale
of development properties under construction using the percentage of
completion method for contracts where the legal terms were such that the
construction represented the continuous transfer of work in progress to the
purchaser, otherwise, the completed contract method was used. Under
SFRS(I) 15, for most of its residential and commercial developments,
performance obligations for the sale of development properties are satisfied
over time where the Group is restricted contractually from directing the
properties for another use as they are being developed and has an enforceable
right to payment for performance completed to date.
The Group has determined that for certain sale of residential properties where
revenue was recognised upon completion previously, its performance does not
create an asset with alternative use to the Group and it has concluded that it
has an enforceable right to payment for performance completed to date.
Therefore, revenue is recognised over time under SFRS(I) 15.
As a result, the Group will recognise an adjustment to increase contract assets
by $3,202,000, derecognise development property of $384,000 with a
corresponding adjustment to retained earnings of $2,818,000 on 1 January
2017. Gross amount due from customers for work-in-progress of $67,000 and
gross amount due to customers for work-in-progress of $942,000 as at 1
January 2017 were reclassified to contract assets and contract liabilities
accordingly.
the recognition of contract assets of $6,530,000, decrease in development
property of $747,000 and a corresponding adjustment to retained earnings of
$5,783,000. The statement of profit or loss for the year ended 31 December
2017 was also restated, resulting in decreases in revenue and cost of sales of
$3,994,000 and $1,029,000 respectively. Gross amount due from customers
for work-in-progress of $398,000 and gross amount due to customers for
work-in-progress of $586,000 as at 31 December 2017 were reclassified to
contract assets and contract liabilities accordingly.
(ii) Capitalised contract costs
The Group pays commissions to property agents on the sale of property and
previously recognised such commissions as expense when incurred. The Group
applied the practical expedients in SFRS(I) 15 for costs to obtain a contract to
expense those costs that would have been amortised over one year or less.
Where amortisation period will be longer than one year, the Group will
capitalise the incremental costs of obtaining a contract that meet the criteria in
SFRS(I)15. Under SFRS(I) 15, the Group capitalises such commissions as
incremental costs to obtain a contract with a customer if these costs are
recoverable. These costs are amortised to profit or loss as the Group
recognises the related revenue. Arising from this change, the Group
recognised an increase in capitalised contract costs of $190,000 and a
corresponding increase in retained earnings by $190,000 on 1 January 2017.



b) Sale of development properties (continued)
(ii) Capitalised contract costs (continued)
increase in capitalised contract cost of $295,000 and a corresponding
adjustment to retained earnings of $295,000. The statement of profit or loss
for the year ended 31 December 2017 was also restated, resulting in increase
in cost of sales of $105,000.
Capitalised fulfilment costs relating to sale of development property were
previously capitalised as development costs. Upon adoption of SFRS(I) 15,
such costs were re-classified as capitalised contract costs. These costs are
amortised to profit or loss as the Group recognises the related revenue. Arising
from this change, the Group recognised an increase in capitalised contract
costs of $300,000 and decrease in retained earnings of $100,000 and a
corresponding decrease in development property by $400,000 as at 1 January
2017.
increase in capitalised contract costs and retained earnings of $395,000 and
$280,000 and a decrease in development property of $675,000. The
statement of profit or loss for the year ended 31 December 2017 was also
restated, resulting in increase in cost of sales of $180,000.
c) Tax and other adjustments:
Upon adoption of SFRS(I) 15, the Group’s investment in joint venture and
investment in associates as at 31 December 2017 decreased by $8,000 and
$30,000 respectively with corresponding adjustments to retained earnings of
$6,000.
The corresponding tax impact to the Group arising from the adoption of SFRS(I) 15
resulted in decrease in income tax payable of 363,000 with a corresponding
increase in retained earnings amounting to $363,000 on 1 January 2017 and an
increase in income tax expense of $46,000 with a corresponding increase in
retained earnings amounting to $46,000 on 31 December 2017.


Commentary
Modified retrospective approach
 In this illustration, the Group applied the full retrospective approach as the Group is a
first-time adopter of SFRS(I) (equivalent to IFRS). Application of the modified
retrospective approach is not an available option for first-time adopter of IFRS.
For existing IFRS reporters, IFRS 15 allows two transition method, the full retrospective
approach and the modified retrospective approach.
If the Group had elected to apply the modified retrospective approach, it would apply IFRS 15.C7
IFRS 15 retrospectively with the cumulative effect of initially applying IFRS 15
recognised at the date of initial application as an adjustment to the opening balance of
retained earnings of the annual reporting period that includes the date of initial
application (i.e. 1 January 2018).
This means that the comparative information in the statement of financial position is
not restated. As such, both the pre-IFRS 15 (i.e. IAS 11, IAS 18 and the related
interpretations) and IFRS 15 accounting policies need to be disclosed.
Under this approach,
 The Group may elect to apply IFRS 15 retrospectively only to contracts that are IFRS 15.C7
not completed contracts at the date of initial application.
 The Group may elect to use the practical expedient on contract modifications IFRS 15.C7A
similar to that in the full retrospective approach, either for all contract
modifications that occur (i) before the beginning of the earliest period presented,
or (ii) before the date of initial application.
 The Group is required to provide the following additional disclosures:
IFRS 15.C8
(a) the amount by which each financial statement line item is affected in the
current reporting year by the application of IFRS 15 as compared to the pre-
IFRS 15 standards; and
(b) an explanation of the reasons for significant changes identified in (a).


The following is the reconciliation of the impact arising from first-time adoption of IFRS 1.24.a.i
SFRS(I) including application of the new accounting standards on 1 January 2017 to
the balance sheet of the Group.
Group
1 January SFRS(I) 1 SFRS(I) 15 1 January
2017 adjustments adjustments 2017
(FRS) (SFRS(I))
$'000 $’000 $’000 $’000
Assets
Non-current assets
Other non-current assets 45,965 - - 45,965
Investment in joint venture 1,370 - (6) 1,364
Investment in associates 10,125 - (26) 10,099
57,460 - (32) 57,428
Current assets
Gross amount due from customers
for work-in-progress 67 - (67) -
Development properties 2,450 - (784) 1,666
Inventories 25,300 - (764) 24,536
Right of return assets - - 856 856
Contract assets - - 3,269 3,269
Capitalised contract costs - - 490 490
Other current assets 27,233 - - 27,233
55,050 - 3,000 58,050
Total assets 112,510 - 2,968 115,478
Current liabilities
Income tax payable 6,362 - (363) 5,999
Trade and other payables 18,367 - (2,879) 15,488
Gross amount due to customers for
work-in-progress 942 - (942) -
Contract liabilities - - 1,255 1,255
Refund liabilities - - 3,796 3,796
Other current liabilities 5,722 - - 5,722
31,393 - 867 32,260
Provisions 1,898 - (268) 1,630
Deferred tax liabilities 1,517 - - 1,517
Other non-current liabilities 15,244 - - 15,244
18,659 - (268) 18,391
Total liabilities 50,052 - 599 50,651
Equity attributable to owners of the
Company
Share capital 9,510 - - 9,510
Retained earnings 48,477 (202) 2,289 50,564
Other reserves 3,031 202 - 3,233
61,018 - 2,289 63,307
Non-controlling interests 1,440 - 80 1,520
Total equity 62,458 - 2,369 64,827
Total equity and liabilities 112,510 - 2,968 115,478


The following is the reconciliation of the impact arising from first-time adoption of IFRS 1.24.a
SFRS(I) including application of the new accounting standards on 31 December 2017

and 1 January 2018 to the balance sheet of the Group.
Group
31 December SFRS(I) 1 SFRS(I) 15 31 December SFRS(I) 9 1 January
2017 adjustments adjustments 2017 adjustments 2018
(FRS) (SFRS(I)) (SFRS(I))
$'000 $’000 $’000 $’000 $’000 $’000
Assets
Non-current assets
Other non-current assets 42,548 - - 42,548 - 42,548
Investment in joint venture 1,523 - (8) 1,515 (2) 1,513
Investment in associates 10,321 - (30) 10,291 (3) 10,288
Other receivables 2,815 - - 2,815 (37) 2,778
Investment securities 3,106 - - 3,106 55 3,161
60,313 - (38) 60,275 13 60,288
Current assets
Gross amount due from
customers for work-in-
progress 398 - (398) - - -
Development properties 3,150 - (1,422) 1,728 - 1,728
Inventories 23,900 - (1,258) 22,642 - 22,642
Right of return assets - - 1,285 1,285 - 1,285
Trade and other receivables 24,930 - 24,930 (293) 24,637
Contract assets - - 6,928 6,928 (15) 6,913
Capitalised contract costs - - 690 690 - 690
Investment securities 1,260 - - 1,260 - 1,260
Other current assets 5,213 - - 5,213 - 5,213
58,851 - 5,825 64,676 (318) 64,368
Total assets 119,164 - 5,787 124,951 (295) 124,656
Equity and liabilities -
Current liabilities
Income tax payable 6,734 - (317) 6,417 (67) 6,350
Trade and other payables 18,934 - (3,969) 14,965 - 14,965
Gross amount due to
customers for work-in-
progress 586 - (586) - - -
Contract liabilities - - 1,309 1,309 - 1,309
Refund liabilities - - 5,333 5,333 - 5,333
Other liabilities 2,579 - - 2,579 2 2,581
Other current liabilities 2,795 - - 2,795 - 2,795
31,628 - 1,770 33,398 (65) 33,333
Provisions 1,841 - (616) 1,225 - 1,225
Deferred tax liabilities 1,904 - - 1,904 11 1,915
Other non-current liabilities 14,942 - - 14,942 - 14,942
18,687 - (616) 18,071 11 18,082
Total liabilities 50,315 - 1,154 51,469 (54) 51,415
Equity attributable to owners
of the Company
Share capital 9,665 - - 9,665 - 9,665
Retained earnings 51,627 (202) 4,553 56,978 (233) 55,745
Other reserves 5,657 202 - 5,859 (8) 5,851
66,949 - 4,553 71,502 (241) 71,261
Non-controlling interests 1,900 - 80 1,980 - 1,980
Total equity 68,849 - 4,633 73,482 (241) 73,241
Total equity and liabilities 119,164 - 5,787 124.951 (295) 124,656


SFRS(I), including application of new standards on 31 December 2017 to the balance

sheet of the Company. The adoption of SFRS(I)) does not have any impact to the
balance sheet of the Company as at 1 January 2017.
Company
31 December 3017 SFRS(I) 9 1 January 2018
(FRS) adjustments (SFRS(I))
$'000 $’000 $’000
Assets
Non-current assets
Property, plant and equipment 603 - 603
Investment in subsidiaries 10,582 - 10,582
Deferred tax assets 26 26
Other receivables 17,401 (103) 17,298
28,612 (103) 28,509
Current assets
Prepaid operating expenses 122 - 122
Trade and other receivables 350 - 350
Cash and short-term deposits 4,145 - 4,145
4,617 - 4,617
Total assets 33,229 (103) 33,126
Current liabilities
Income tax payable 2,115 (18) 2,097
Trade and other payables 414 - 414
Other liabilities 446 10 456
2,975 (8) 2,967
Deferred tax liabilities 231 - 231
Loans and borrowings 5,628 - 5,628
5,859 - 5,859
Total liabilities 8,834 (8) 8,826
Equity attributable to owners of the
Company
Share capital 9,665 - 9,665
Retained earnings 14,309 (95) 14,214
Other reserves 421 - 421
Total equity 24,395 (95) 24,300
Total equity and liabilities 33,229 (95) 33,126


SFRS(I) and application of the new accounting standards to the comprehensive income
the Group for the year ended 31 December 2017.
2017 SFRS(I) 15 2017
(FRS) adjustments (SFRS(I))
$’000 $’000 $’000
Continuing operations
Revenue 142,571 3,032 145,603

Cost of sales (111,820) (716) (112,536)
Gross profit 30,751 2,316 33,067
Other items of income 1,619 - 1,619
Other items of expense
Others (25,710) - (25,710)
Share of results of joint ventures 128 (2) 126
Share of results of associates 328 (4) 324
Profit before tax from continuing operations 7,116 2,310 9,426
Income tax expense (1,687) (46) (1,733)
Profit from continuing operations, net of tax 5,429 2,264 7,693
Discontinued operation
Loss from discontinued operation, net of tax (188) - (188)
Profit for the year 5,241 2,264 7,505

Other comprehensive income items that will not be
reclassified to profit or loss 2,414 - 2,414
Other comprehensive income items that will be
reclassified to profit or loss 16 - 16
Other comprehensive income for the year, net of tax 2,430 - 2,430
Total comprehensive income for the year 7,671 2,264 9,935

Total comprehensive income attributable to:
Owners of the Company 7,211 2,244 9,455
Non-controlling interests 460 20 460
Total comprehensive income for the year 7,671 2,264 9,935
Earnings per share from continuing operations

attributable to owners of the Company (cents per
share)
Basic 21.81 9.82 31.63
Diluted 21.58 9.61 31.19
Basic 21.00 9.82 30.82
Diluted 20.78 9.61 30.39


2.3 Standards issued but not yet effective 

IAS 8.30-31
The Group has not adopted the following standards applicable to the Group that have
been issued but not yet effective:
Effective for annual periods

Description beginning on or after
SFRS(I) 16 Leases 1 January 2019
SFRS(I) INT 23 Uncertainty over Income Tax Treatments  1 January 2019
Amendments to SFRS(I) 9 Prepayment Features with 1 January 2019

Negative Compensation
Amendments to SFRS(I) 1-28 Long-term Interests in 1 January 2019
Associates and Joint Ventures
Annual Improvements to SFRS(I)s 2015-2017 Cycle 1 January 2019
Amendments to SFRS(I) 10 and SFRS(I) 1-28 Sale or Date to be determined

Contribution of Assets between an Investor and its
Associate or Joint Venture 
Commentary:
Standards issued but not yet effective
 IAS 8 requires an entity to:

(a) disclose those standards or interpretations that have been issued which are not
yet effective; and
(b) provide known or reasonably estimable information to assess the possible impact
that the application of such IFRSs will have on the entity’s financial statements in
the period of initial application.
Therefore, the Group has listed those standards and interpretations that are issued but
not yet effective as at 31 October 2018 that are relevant to the Group.
The following is a list of standards and interpretations issued but not effective as at 31
October 2018 that are not relevant to the Group. Each entity should customise the
note accordingly to include standards that are applicable to the entity.
Description Effective for annual periods

beginning on or after
Amendments to IAS 19 Plan Amendment, 1 January 2019
Curtailment or Settlement
IFRS 17 Insurance Contracts 1 January 2021
Standards issued by IASB which are not yet adopted by ASC

 In October 2018, the International Accounting Standards Board (IASB) issued the
following amendments which are not yet adopted by ASC:
Description Effective for annual periods

beginning on or after
Definition of a Business (Amendments to IFRS 3) 1 January 2020
Definition of Material (Amendments to IAS 1 and 1 January 2020
IAS 8)
Amendments to IFRS 10 and IAS 28

 In August 2016, the International Accounting Standards Board (IASB) issued an
amendment to defer the effective date of these Amendments to IFRS 10 and IAS 28 to
a date to be decided after the IASB completes its research project on equity accounting.


2.3 Standards issued but not yet effective (continued)

SFRS(I) INT 23 Uncertainty over Income Tax Treatments
 In this illustration, the adoption of SFRS(I) INT 23 does not have any impact to the
Group.
The following are illustrative disclosures for impact of adoption of SFRS(I) 23 on
scenario where it is not probable that tax authority would accept the Group’s tax
treatment.
SFRS(I) INT 23, effective for annual periods beginning on or after 1 January 2019,
addresses accounting for income taxes when tax treatments are uncertain.
Where there are uncertain tax treatments for which it is not probable that the tax
authority will accept the Group’s tax treatment, the Group is required to reflect the
effect of the uncertainty in determining the tax liability to be recorded. The effects
of the uncertainty are reflected using either of the following methods, depending on
which method the Group expects to better predict the resolution of the uncertainty:
the most likely amount of the expected value.
The Group has significant open tax assessment with a tax authority where the Group
has provided for income taxes of $XXX as at 31 December 2018. Upon adoption of
the interpretations as at 1 January 2019, the Group has assessed that it is not
probable that the tax authority will accept the Group’s tax treatment based on tax
advice and recent case laws. Accordingly, the Group re-measures the uncertain tax
positions based on SFRS(I) INT 23 by using the expected value method, which
provides better prediction of the resolution of the uncertainty. Upon adoption of
SFRS(I) INT 23 on 1 January 2019, the Group expects to recognise an increase in
income tax payables of $XXX with a corresponding decrease in retained earnings.



IAS 8.30-31
Except for SFRS(I) 16, the directors expect that the adoption of the other standards
above will have no material impact on the financial statements in the year of initial
application. The nature of the impending changes in accounting policy on adoption of
SFRS(I) 16 are described below.
The disclosures relating to standards issued but not yet effective below are
based on the specific circumstances of XYZ Holdings (Singapore) Limited and
may not be applicable or relevant to other entities. Each entity should customise
the information disclosed according to the specific circumstances.
SFRS(I) 16 Leases 
SFRS(I) 16 requires lessees to recognise most leases on balance sheets. The standard
includes two recognition exemptions for lessees – leases of ‘low value’ assets and
short-term leases. SFRS(I) 16 is effective for annual periods beginning on or after 1
January 2019. At commencement date of a lease, a lessee will recognise a liability to
make a lease payments (i.e. the lease liability) and an asset representing the right to
use the underlying asset during the lease term (i.e. the right-of-use asset). Lessees will
be required to separately recognise the interest expense on the lease liability and the
depreciation expense on the right-of-use asset.
IFRS 16.C5
The Group plans to adopt SFRS(I) 16 retrospectively with the cumulative effect of
initially applying the standard as an adjustment to the opening retained earnings at the
date of initial application, 1 January 2019.
IFRS 16.C8
On the adoption of SFRS(I) 16, the Group expects to choose, on a lease-by-lease basis,
to measure the right-of-use asset at either:
(i) its carrying amount as if SFRS(I) 16 had been applied since the commencement
date, but discounted using the lessee’s incremental borrowing rate as of 1 January
2019; or
(ii) an amount equal to the lease liability, adjusted by the amount of any prepaid or
accrued lease payments relating to that lease recognised in the statement of
financial position immediately before 1 January 2019.
In addition, the Group plans to elect the following practical expedients: IFRS 16.C3
IFRS 16.C10
 not to reassess whether a contract is, or contains a lease at the date of initial
application and to apply SFRS(I) 16 to all contracts that were previously
identified as leases
 to apply the exemption not to recognise right-of-use asset and lease liabilities
to leases for which the lease term ends within 12 months as of 1 January
2019
 to apply a single discount rate to a portfolio of leases with reasonably similar
characteristics
The Group has performed a preliminary impact assessment based on currently
available information, and the assessment may be subject to changes arising from
ongoing analysis until the Group adopts SFRS(I) 16 in 2019.
On the adoption of SFRS(I) 16, the Group expects to recognise right-of-use assets of
$908,000 and lease liabilities of $924,000 for its leases previously classified as
operating leases, with a corresponding decrease in the opening retained earnings of
$16,000 and its related tax impact as of 1 January 2019. In addition, the Group will
present land use rights of $5,811,000 as right-of-use assets as of 1 January 2019.



IAS 8.30-31
Commentary:
IFRS 16 transition provisions
 The transition requirements in IFRS 16 allows an entity to choose either the full
retrospective approach, or the modified retrospective approach for leases which it is the
lessee. The election is to be applied consistently to all of its leases.
In this illustration, the Group plans to apply a modified retrospective approach. The
disclosure should be tailored accordingly if an entity plans to apply the full retrospective
approach, to adjust the opening balance of each affected component of equity for the
earliest prior period presented and the other comparative amounts for each prior period
presented as if the entity has always applied the requirements of the new standard.
 In this illustration, it is assumed that the Group does not have subleases. If there is an
impact arising from the change in the lessor accounting for subleases, the expected
impact should be disclosed accordingly.
 In this illustration, it is assumed that the effects of adoption of IFRS 16 does not result in
adjustment to other items in the financial statements such as prepaid or accrued rents.
If there is any impact to such line items in the financial statements, the amount of
adjustment for the affected line items in the financial statements should be disclosed
accordingly.


Notes to users:
The summary of significant accounting policies in this illustration are based on assumed
circumstances of XYZ Holdings (Singapore) Limited and may not be relevant to all entities. Each
entity should customise the significant accounting policies disclosed according to the specific
circumstances relevant to the entity.
2.4 Basis of consolidation and business combinations
a) Basis of consolidation 
The consolidated financial statements comprise the financial statements of IFRS 10.4
the Company and its subsidiaries as at the end of the reporting period. The IFRS 10.Appendix A
IFRS 10.B92
financial statements of the subsidiaries used in the preparation of the
consolidated financial statements are prepared for the same reporting date as
the Company.  Consistent accounting policies are applied to like transactions IFRS 10.19 and B87
and events in similar circumstances.
All intra-group balances, income and expenses and unrealised gains and losses IFRS 10.B86.c
resulting from intra-group transactions and dividends are eliminated in full.
Subsidiaries are consolidated from the date of acquisition, being the date on IFRS 10.20 and B88
which the Group obtains control, and continue to be consolidated until the
date that such control ceases.
Losses within a subsidiary are attributed to the non-controlling interest even if IFRS 10.B94
that results in a deficit balance.
b) Business combinations and goodwill

Business combinations are accounted for by applying the acquisition method. IFRS 3.4
IFRS 3.10 and 18
 Identifiable assets acquired and liabilities  assumed in a business
combination are measured initially at their fair values at the acquisition date. IFRS 3.53
Acquisition-related costs are recognised as expenses in the periods in which
the costs are incurred and the services are received.
Any contingent consideration to be transferred by the acquirer will be IFRS 3.39, 40 and 58
recognised at fair value at the acquisition date. Subsequent changes to the
fair value of the contingent consideration which is an asset or liability are
recognised in profit or loss.
IFRS 3.19
Non-controlling interest in the acquiree, that are present ownership interests
and entitle their holders to a proportionate share of net assets of the acquire
are recognised on the acquisition date at either fair value, or the non-
controlling interest’s proportionate share of the acquiree’s identifiable net
assets. 
IFRS 3.32
Any excess of the sum of the fair value of the consideration transferred in the
business combination, the amount of non-controlling interest in the acquiree
(if any), and the fair value of the Group’s previously held equity interest in the
acquiree (if any), over the net fair value of the acquiree’s identifiable assets
and liabilities is recorded as goodwill. In instances where the latter amount
exceeds the former, the excess is recognised as gain on bargain purchase in IFRS 3.34
profit or loss on the acquisition date.


2.4 Basis of consolidation and business combinations (continued)
b) Business combinations and goodwill (continued)

Goodwill is initially measured at cost. Following initial recognition, goodwill is IFRS 3.B63.a
measured at cost less any accumulated impairment losses.
For the purpose of impairment testing, goodwill acquired in a business IAS 36.80
combination is, from the acquisition date, allocated to the Group’s cash-
generating units that are expected to benefit from the synergies of the
combination. 
IAS 36.90
The cash-generating units to which goodwill have been allocated is tested for
impairment annually  and whenever there is an indication that the cash-
generating unit may be impaired. Impairment is determined for goodwill by
assessing the recoverable amount of each cash-generating unit (or group of
cash-generating units) to which the goodwill relates.
Commentary:
Investment entities
 IFRS 10 provides exception to the consolidation requirement for entities that meet the
definition of an investment entity. The exception to consolidation requires investment
entities to account for subsidiaries at fair value through profit or loss in accordance with
IFRS 9 Financial Instruments.
Please refer to commentary no.9 in Note 17 Investment in subsidiaries for disclosure
requirements.
Reporting date of subsidiary
 The financial statements of the parent and its subsidiaries used in the preparation of the IFRS 10.B92
consolidated financial statements shall be prepared as of the same reporting date. When
the end of the reporting period of the parent is different from that of a subsidiary, the
subsidiary prepares, for consolidation purposes, additional financial statements as of the
same date as the financial statements of the parent, unless it is impracticable to do so.
Where it is impracticable to do so, the parent may use the financial statements of a
IFRS 10.B93
subsidiary prepared as of a reporting date different from that of the parent, provided
adjustments are made for the effects of significant transactions or events that occur
between that date and the date of the parent’s financial statements, and the difference
between the reporting dates of the subsidiary and parent is no more than three months.
In addition, the length of the reporting periods and any difference in the reporting dates
shall be the same from period to period.
When the financial statements of a subsidiary used in the preparation of consolidated IFRS 12.11
financial statements are as of a date or for a period that is different from that of the
consolidated financial statements, an entity shall disclose the date of the end of the
reporting period of the financial statements of that subsidiary and the reason for using a
different date or period.


Commentary:
Measurement of non-controlling interest
 IFRS 3 provides acquirers with the option of measuring non-controlling interest arising in
IFRS 3.19
a business combination that are present ownership interests and entitle their holders to a
proportionate share of net assets of the subsidiary in the event of liquidation at either:
- Fair value; or
- The non-controlling interest’s proportionate interest in the acquiree’s identifiable net
assets.
The option is elected for each individual business combination and does not constitute an
accounting policy choice for similar transactions. Selecting the option will require
management to carefully consider their future intentions regarding transactions with
non-controlling interest, since the two options, combined with the revisions to accounting
for changes in ownership interest of a subsidiary will potentially result in significantly
different amounts of goodwill and equity.
Goodwill
 IAS 36 Impairment of Assets permits annual impairment test for goodwill and intangible IAS 36.96
assets with indefinite useful lives to be performed at any time during the year provided it
is at the same time each year. Different goodwill and intangible assets may be tested at
different times.

Business combinations involving entities under common control
 In this illustration, there is no business combination involving entities under common
control. Where a business combination involves entities or businesses under common
control, it is outside the scope of IFRS 3 and may be accounted for using the pooling of
interest method or the acquisition method (when the transaction has substance from the
perspective of the reporting entity).
Illustrative accounting policy where the pooling of interest method is applied:
Business combinations involving entities under common control are accounted for by
applying the pooling of interest method which involves the following:
 The assets and liabilities of the combining entities are reflected at their carrying
amounts reported in the consolidated financial statements of the controlling holding
company.
 No adjustments are made to reflect the fair values on the date of combination, or
recognise any new assets or liabilities.
 No additional goodwill is recognised as a result of the combination.
 Any difference between the consideration paid/transferred and the equity ‘acquired’ is
reflected within the equity as merger reserve.
 The statement of comprehensive income reflects the results of the combining entities
for the full year, irrespective of when the combination took place.
Comparatives are restated to reflect the combination as if it had occurred from the
beginning of the earliest period presented in the financial statements or from the date the
entities had come under common control, if later.



Business combinations achieved in stages
 In this illustration, there is no business combinations achieved in stages.
Illustrative accounting policy where there is business combinations achieved in stages:
In business combinations achieved in stages, previously held equity interests in the IFRS 3.42
acquiree are remeasured to fair value at the acquisition date and any corresponding gain
or loss is recognised in profit or loss.
Contingent liabilities recognised in a business combination

 In this illustration, there is no contingent liabilities recognised in a business combination.
Illustrative accounting policy where there is contingent liabilities assumed in the business
combination:
A contingent liability recognised in a business combination is initially measured at its fair
value. Subsequently, it is measured at the higher of:
IFRS 3.56
- The amount that would be recognised in accordance with the accounting policy for
provisions set out in Note 2.21; or
- The amount initially recognised less, when appropriate, cumulative amortisation
recognised in accordance with guidance for revenue recognition.
Goodwill
 In this illustration, the Group does not have goodwill which forms part of a cash generating
unit in which part of the operation within that cash generating unit is disposed of.
Illustrative accounting policy for goodwill which forms part of a cash generating unit in
which part of the operation within that cash generating unit is disposed of:
Where goodwill forms part of a cash-generating unit and part of the operation within that
IAS 36.86
cash-generating unit is disposed of, the goodwill associated with the operation disposed of
is included in the carrying amount of the operation when determining the gain or loss on
disposal of the operation. Goodwill disposed of in this circumstance is measured based on
the relative fair values of the operations disposed of and the portion of the cash-
generating unit retained.
2.5 Transactions with non-controlling interests
Non-controlling interest represents the equity in subsidiaries not attributable, directly IFRS
or indirectly, to owners of the Company. 10.Appendix A
Changes in the Company’s ownership interest in a subsidiary that do not result in a IFRS 10.22
loss of control are accounted for as equity transactions. In such circumstances, the
carrying amounts of the controlling and non-controlling interests are adjusted to
reflect the changes in their relative interests in the subsidiary. Any difference between
the amount by which the non-controlling interest is adjusted and the fair value of the
IFRS 10.23
consideration paid or received is recognised directly in equity and attributed to owners IFRS 10.B96
of the Company.


2.6 Foreign currency 

IAS 1.51.d
The financial statements are presented in Singapore Dollars, which is also the
Company’s functional currency. Each entity in the Group determines its own functional
currency and items included in the financial statements of each entity are measured
using that functional currency.
a) Transactions and balances
Transactions in foreign currencies are measured in the respective functional IAS 21.21
currencies of the Company and its subsidiaries and are recorded on initial
recognition in the functional currencies at exchange rates approximating those
ruling at the transaction dates. Monetary assets and liabilities denominated in
foreign currencies are translated at the rate of exchange ruling at the end of
IAS 21.23
the reporting period. Non-monetary items that are measured in terms of
historical cost in a foreign currency are translated using the exchange rates as
at the dates of the initial transactions. Non-monetary items measured at fair
value in a foreign currency are translated using the exchange rates at the date
when the fair value was measured.
Exchange differences arising on the settlement of monetary items or on IAS 21.28
translating monetary items at the end of the reporting period are recognised
in profit or loss. 
b) Consolidated financial statements
For consolidation purpose, the assets and liabilities of foreign operations are IAS 21.39
translated into SGD at the rate of exchange ruling at the end of the reporting
period and their profit or loss are translated at the exchange rates prevailing
at the date of the transactions. The exchange differences arising on the
translation are recognised in other comprehensive income. On disposal of a
IAS 21.48
foreign operation, the component of other comprehensive income relating to
that particular foreign operation is recognised in profit or loss.

Partial disposal of foreign operation
 In this illustration, the Group does not have partial disposal of foreign
operation.
Illustrative accounting policy for foreign currency for partial disposal of foreign
operation.
In the case of a partial disposal without loss of control of a subsidiary that IAS 21.48C
includes a foreign operation, the proportionate share of the cumulative
amount of the exchange differences are re-attributed to non-controlling
interest and are not recognised in profit or loss.
For partial disposals of associates or jointly controlled entities that are
foreign operations, the proportionate share of the accumulated exchange
differences is reclassified to profit or loss.


2.6 Foreign currency (continued) 
Additional illustrative disclosures (continued):
Net investment in foreign operations
 In this illustration, the Group does not have exchange differences arising from
monetary items that form part of the Group’s net investment in foreign
operation.
Illustrative accounting policy for exchange differences arising from monetary
items that form part of the Group’s net investment in foreign operation.
Exchange differences arising on monetary items that form part of the IAS 21.32 and 48
Group’s net investment in foreign operations are recognised initially in
other comprehensive income and accumulated under foreign currency
translation reserve in equity. The foreign currency translation reserve is
reclassified from equity to profit or loss of the Group on disposal of the
foreign operation.
2.7 Property, plant and equipment
All items of property, plant and equipment are initially recorded at cost. Subsequent to IAS 16.15 and 16
IAS 16.30
recognition, property, plant and equipment other than freehold land and buildings are
measured at cost less accumulated depreciation and any accumulated impairment
losses.
IAS 16.31 and
Freehold land and buildings are measured at fair value less accumulated depreciation 73.a
on buildings and impairment losses recognised after the date of the revaluation.
Valuations are performed with sufficient regularity to ensure that the carrying amount
does not differ materially from the fair value of the freehold land and buildings at the
end of the reporting period.
Any revaluation surplus is recognised in other comprehensive income and accumulated IAS 16.39
in equity under the asset revaluation reserve, except to the extent that it reverses a
revaluation decrease of the same asset previously recognised in profit or loss, in which
case the increase is recognised in profit or loss. A revaluation deficit is recognised in IAS 16.40
profit or loss, except to the extent that it offsets an existing surplus on the same asset
carried in the asset revaluation reserve.
Any accumulated depreciation as at the revaluation date is eliminated against the IAS 16.35.b
gross carrying amount of the asset and the net amount is restated to the revalued
amount of the asset.  The revaluation surplus included in the asset revaluation IAS 16.41
reserve in respect of an asset is transferred directly to retained earnings on retirement
or disposal of the asset. 
Freehold land has an unlimited useful life and therefore is not depreciated. IAS 16.73.b and c
IAS 36.9
Depreciation is computed on a straight-line basis over the estimated useful lives of the
assets as follows:
- Buildings: 40 years
- Plant and equipment: 3 to 15 years
- Furniture and fixtures: 5 to 20 years
Assets under construction included in plant and equipment are not depreciated as
these assets are not yet available for use.
The residual value, useful life and depreciation method are reviewed at each financial IAS 16.51
year-end, and adjusted prospectively, if appropriate. IAS 16.61


2.7 Property, plant and equipment (continued)
Commentary:
Revaluation of property, plant and equipment
 When an item of property, plant and equipment is revalued, any accumulated IAS 16.35.a
depreciation at the date of the revaluation may instead be restated proportionately with
the change in the gross carrying amount of the asset so that the carrying amount of the
asset after revaluation equals its revalued amount. This method is often used when an
asset is revalued by means of applying an index to its depreciated replacement cost.
 Alternatively, the entity may adopt a policy to make an annual transfer of the revaluation
IAS 16.41
surplus to retained earnings as the asset is used. In such a case, the amount of the
surplus transferred would be the difference between depreciation based on the revalued
carrying amount of the asset and depreciation based on the asset’s original cost.
2.8 Investment properties 

IAS 40.5
Investment properties are properties that are either owned by the Group or leased
under a finance lease that are held to earn rentals or for capital appreciation, or both,
rather than for use in the production or supply of goods or services, or for
administrative purposes, or in the ordinary course of business. Investment properties
comprise completed investment properties and properties that are being constructed IAS 40.8.e
or developed for future use as investment properties. Properties held under operating
IAS 40.6
leases are classified as investment properties when the definition of an investment
property is met.
Investment properties are initially measured at cost, including transaction costs. IAS 40.20
Subsequent to initial recognition, investment properties are measured at fair value.  IAS 40.33
Gains or losses arising from changes in the fair values of investment properties are IAS 40.35
included in profit or loss in the year in which they arise.
Commentary:
Investment properties
 Judgement is needed to determine whether a property qualifies as investment property. IAS 40.14 and 75.c
When classification is difficult, the entity should disclose the criteria developed by the entity
so that it can exercise that judgement consistently in accordance with the definition of
investment property.
 Alternatively, the entity may adopt the cost model which is to measure investment IAS 40.30 and 56
properties at cost less accumulated depreciation and accumulated impairment losses. In
these circumstances, disclosure about the cost basis and depreciation rates would be
required. This option is not available if the entity accounts for property interest held under
an operating lease as investment property.
IAS 40.34
In addition, for any investment properties recorded at cost, IAS 40 requires disclosure
about the fair value, including disclosures about the methods and significant assumptions
used to determine the fair value. Therefore, companies would still need to determine the
fair value of the investment properties. In the exceptional cases when an entity cannot
measure the fair value of investment properties reliably, it shall disclose:
(a) a description of the investment properties;
(b) an explanation of why fair value cannot be measured reliably; and
(c) if possible, the range of estimate within which fair value is highly likely to lie.


2.9 Intangible assets
Intangible assets acquired separately are measured initially at cost. Following initial IAS 38.24
IAS 38.33
acquisition, intangible assets are carried at cost less any accumulated amortisation
and any accumulated impairment losses.  Internally generated intangible assets,
excluding capitalised development costs, are not capitalised and expenditure is IAS 38.74
reflected in profit or loss in the year in which the expenditure is incurred.
IAS 38.88
The useful lives of intangible assets are assessed as either finite or indefinite.
Intangible assets with finite useful lives are amortised over the estimated useful lives IAS 38.97 and
118.b
and assessed for impairment whenever there is an indication that the intangible asset IAS 36.9
may be impaired. The amortisation period and the amortisation method are reviewed
at least at each financial year-end. Changes in the expected useful life or the expected IAS 38.104
pattern of consumption of future economic benefits embodied in the asset is
accounted for by changing the amortisation period or method, as appropriate, and are
treated as changes in accounting estimates.
Intangible assets with indefinite useful lives or not yet available for use are tested for IAS 36.10.a
impairment annually , or more frequently if the events and circumstances indicate IAS 36.9
that the carrying value may be impaired either individually or at the cash-generating
unit level. Such intangible assets are not amortised. The useful life of an intangible
IAS 38.107
asset with an indefinite useful life is reviewed annually to determine whether the useful
IAS 38.109
life assessment continues to be supportable. If not, the change in useful life from
indefinite to finite is made on a prospective basis.
a) Brands
The brands were acquired in business combinations. The useful lives of the IAS 38.118.a
IAS 38.122.a
brands are estimated to be indefinite because based on the current market
share of the brands, management believes there is no foreseeable limit to the
period over which the brands are expected to generate net cash inflows for
the Group.
b) Research and development costs
Research costs are expensed as incurred. Deferred development costs arising IAS 38.54
from development expenditures on an individual project are recognised as an IAS 38.57
intangible asset when the Group can demonstrate the technical feasibility of
completing the intangible asset so that it will be available for use or sale, its
intention to complete and its ability to use or sell the asset, how the asset will
generate future economic benefits, the availability of resources to complete
and the ability to measure reliably the expenditures during the development.
Following initial recognition of the deferred development costs as an IAS 38.74
intangible asset, it is carried at cost less accumulated amortisation and any
accumulated impairment losses. Amortisation of the intangible asset begins
when development is complete and the asset is available for use. Deferred
development costs have a finite useful life and are amortised over the period
IAS 38.118.a and b
of expected sales from the related project (ranging from 4 to 8 years) on a
straight line basis.
b) Club membership
Club membership was acquired separately and is amortised on a straight line IAS 38.118.a and b
basis over its finite useful life of 10 years.


2.9 Intangible assets (continued)
Commentary:
Intangible assets
IAS 38.75
 Alternatively, the entity may adopt the revaluation model which is to measure intangible
assets at fair value less accumulated amortisation and accumulated impairment losses.
This option is only available if the fair value can be determined by reference to an active
market.
 Please refer to commentary no.4 of Note 2.4 Business combinations and goodwill.
2.10 Land use rights 
Land use rights are initially measured at cost. Following initial recognition, land use
rights are measured at cost less accumulated amortisation. The land use rights are
amortised on a straight-line basis over the lease term of 50 years.
Commentary:
Land use rights
 Long-term land-use rights are leases under the definition of IAS 17. In this illustration, it
is assumed that the lease does not transfer substantially all the risks and rewards IAS 17.8
incidental to ownership of the land. Therefore, the lease is an operating lease and the
payments made on acquiring the land-use right represent prepaid lease payments.
2.11 Impairment of non-financial assets
The Group assesses at each reporting date whether there is an indication that an asset IAS 36.9
may be impaired. If any indication exists, or when an annual impairment testing for an
asset is required, the Group makes an estimate of the asset’s recoverable amount.
An asset’s recoverable amount is the higher of an asset’s or cash-generating unit’s fair IAS 36.18 and 22
value less costs of disposal and its value in use and is determined for an individual
asset, unless the asset does not generate cash inflows that are largely independent of
those from other assets or groups of assets. Where the carrying amount of an asset or IAS 36.59
cash-generating unit exceeds its recoverable amount, the asset is considered impaired
and is written down to its recoverable amount.
Impairment losses are recognised in profit or loss, except for assets that are IAS 36.60
previously revalued where the revaluation was taken to other comprehensive income.
In this case, the impairment is also recognised in other comprehensive income up to
the amount of any previous revaluation.
A previously recognised impairment loss is reversed only if there has been a change in IAS 36.114
the estimates used to determine the asset’s recoverable amount since the last
impairment loss was recognised. If that is the case, the carrying amount of the asset is
increased to its recoverable amount. That increase cannot exceed the carrying amount
that would have been determined, net of depreciation, had no impairment loss been IAS 36.117
recognised previously. Such reversal is recognised in profit or loss unless the asset is
measured at revalued amount, in which case the reversal is treated as a revaluation IAS 36.119
increase. Impairment losses relating to goodwill cannot be reversed in future periods.


2.12 Subsidiaries
IFRS 10.6
A subsidiary is an investee that is controlled by the Group. The Group controls an
investee when it is exposed, or has rights, to variable returns from its involvement with
the investee and has the ability to affect those returns through its power over the
investee.
IAS 27.17.c
In the Company’s balance sheet, investments in subsidiaries are accounted for at cost
less impairment losses. 
Commentary:
Subsidiaries
 Alternatively, the entity may choose to account for its investment in subsidiary in IAS 27.10.b
accordance with IFRS 9 Financial Instruments or using the equity method. The same
accounting must be applied for all investments in subsidiaries.
2.13 Joint arrangements
A joint arrangement is a contractual arrangement whereby two or more parties have IFRS 11.4
joint control. Joint control is the contractually agreed sharing of control of an IFRS 11.7
arrangement, which exists only when decisions about the relevant activities require
the unanimous consent of the parties sharing control.
A joint arrangement is classified either as joint operation or joint venture, based on the IFRS 11.14
rights and obligations of the parties to the arrangement.
To the extent the joint arrangement provides the Group with rights to the assets and IFRS 11.15
obligations for the liabilities relating to the arrangement, the arrangement is a joint
operation. To the extent the joint arrangement provides the Group with rights to the
IFRS 11.16
net assets of the arrangement, the arrangement is a joint venture.
a) Joint operations 
The Group recognises in relation to its interest in a joint operation, IFRS 11.20
(a) its assets, including its share of any assets held jointly;
(b) its liabilities, including its share of any liabilities incurred jointly;
(c) its revenue from the sale of its share of the output arising from the joint
operation;
(d) its share of the revenue from the sale of the output by the joint operation; and
(e) its expenses, including its share of any expenses incurred jointly.
The Group accounts for the assets, liabilities, revenues and expenses relating to its IFRS 11.21
interest in a joint operation in accordance with the accounting policies applicable
to the particular assets, liabilities, revenues and expenses.
b) Joint ventures
The Group recognises its interest in a joint venture as an investment and accounts IFRS 12.24
for the investment using the equity method. The accounting policy for investment
in joint venture is set out in Note 2.14.


2.13 Joint arrangements (continued)

Sales and contributions of assets to a joint operation
 In this illustration, sales and contributions of assets to a joint operation are not
significant.
Illustrative accounting policy for sales and contributions of assets to a joint operation
When the Group enters into transaction involving a sale or contribution of assets with IFRS 11.B34
a joint operation in which it is a joint operator, the Group recognises gains or losses
resulting from such a transaction only to the extent of the interests held by the other
parties of the joint operation.
Purchases of assets from a joint operation

 In this illustration, purchases of assets from a joint operation are not significant.
Illustrative accounting policy for purchases of assets from a joint operation
When the Group enters into a transaction involving purchase of assets with a joint IFRS 11.B36
operation in which it is a joint operator, the Group does not recognise its share of the
gains and losses until it resells those assets to a third party. When such transactions
IFRS 11.B37
provide evidence of a reduction in the net realisable value of the assets to be
purchased or of an impairment loss of those assets, the Group recognises it share of
those losses.
2.14 Joint ventures and associates 
An associate is an entity over which the Group has the power to participate in the IAS 28.3
financial and operating policy decisions of the investee but does not have control or
joint control of those policies.
The Group account for its investments in associates and joint ventures using the equity IAS 28.16
IAS 28.32
method from the date on which it becomes an associate or joint venture.
On acquisition of the investment, any excess of the cost of the investment over the IAS 28.32
Group’s share of the net fair value of the investee’s identifiable assets and liabilities
represents goodwill and is included in the carrying amount of the investment. Any
excess of the Group’s share of the net fair value of the investee’s identifiable assets
and liabilities over the cost of the investment is included as income in the
determination of the entity’s share of the associate or joint venture’s profit or loss in
the period in which the investment is acquired.
Under the equity method, the investment in associates or joint ventures are carried in IAS 28.10
the balance sheet at cost plus post-acquisition changes in the Group’s share of net
assets of the associates or joint ventures. The profit or loss reflects the share of
results of the operations of the associates or joint ventures. Distributions received
from joint ventures or associates reduce the carrying amount of the investment.
Where there has been a change recognised in other comprehensive income by the
associates or joint venture, the Group recognises its share of such changes in other
comprehensive income. Unrealised gains and losses resulting from transactions
IAS 28.28
between the Group and associate or joint venture are eliminated to the extent of the
interest in the associates or joint ventures.
When the Group’s share of losses in an associate or joint venture equals or exceeds its IAS 28.38
interest in the associate or joint venture,  the Group does not recognise further
losses, unless it has incurred obligations or made payments on behalf of the associate
or joint venture.


2.14 Joint ventures and associates  (continued)
After application of the equity method, the Group determines whether it is necessary IAS 28.40
to recognise an additional impairment loss on the Group’s investment in associate or

joint ventures. The Group determines at the end of each reporting period whether
IAS 28.42
there is any objective evidence that the investment in the associate or joint venture is
impaired. If this is the case, the Group calculates the amount of impairment as the
difference between the recoverable amount of the associate or joint venture and its
carrying value and recognises the amount in profit or loss.
The financial statements of the associates and joint ventures are prepared as the same IAS 28.33
reporting date as the Company.  Where necessary, adjustments are made to bring IAS 28.35
the accounting policies in line with those of the Group.
Commentary:
Joint ventures and associates
 The interest in an associate or a joint venture is the carrying amount of the investment in IAS 28.38
the associate or joint venture under the equity method together with any long-term
interests that, in substance, form part of the investor’s net investment in the associate or
joint venture. For example, an item for which settlement is neither planned nor likely to
occur in the foreseeable future is, in substance, an extension of the entity’s investment in
that associate or joint venture. Such items may include preference shares and long-term
receivables or loans but do not include trade receivables, trade payables or any long-
term receivables for which adequate collateral exists, such as secured loans.
 The financial statements of the associate or joint venture are prepared as of the same IAS 28.33
reporting date as the Company unless it is impracticable to do so. When the financial IAS 28.34
statements of an associate or joint venture used in applying the equity method are
prepared as of a different reporting date from that of the Company, adjustments are
made for the effects of significant transactions or events that occur between that date
and the reporting date of the Company. In any case, the difference between the end of
the reporting period of the associate or joint venture and that of the investor shall be no
more than three months. The length of the reporting periods and any difference between
the ends of the reporting periods shall be the same from period to period.
When the financial statements of an associate or joint venture used in applying the equity IFRS 12.22.b
method are as of a reporting date or for a period that is different from that of the
Company, the reporting date of the financial statements of the associate or joint venture
and the reason for using a different reporting date or different period shall be disclosed.


2.14 Joint ventures and associates  (continued)

Loss of significant influence or joint control
 In this illustration, loss of significant influence over associate or joint control over joint
venture is not significant to the Group.
Illustrative accounting policy upon loss of significant influence over associate or joint
control over joint venture:
Upon loss of significant influence or joint control over the associate or joint venture, IAS 28.22
the Group measures the retained interest at fair value. Any difference between the
fair value of the aggregate of the retained interest and proceeds from disposal and
the carrying amount of the investment at the date the equity method was
discontinued is recognised in profit or loss.
Changes in ownership interest
 In this illustration, changes in ownership interest without loss of significant influence or

joint control is not significant to the Group.
Illustrative accounting policy upon changes in ownership interest:
If the Group’s ownership interest in an associate or a joint venture is reduced, but the
Group continues to apply the equity method, the Group reclassifies to profit or loss IAS 28.25
the proportion of the gain or loss that had previously been recognised in other
comprehensive income relating to that reduction in ownership interest if that gain or
loss would be required to be reclassified to profit or loss on the disposal of the
related assets or liabilities.


2.15 Financial instruments 
a) Financial assets
Initial recognition and measurement

Financial assets are recognised when, and only when the entity becomes party to IFRS 9.3.1.1
the contractual provisions of the instruments.
At initial recognition, the Group measures a financial asset at its fair value plus, in IFRS 9.5.1.1
the case of a financial asset not at fair value through profit or loss, transaction
costs that are directly attributable to the acquisition of the financial asset.
Transaction costs of financial assets carried at fair value through profit or loss are
expensed in profit or loss.
IFRS 9.5.1.3
Trade receivables are measured at the amount of consideration to which the Group
expects to be entitled in exchange for transferring promised goods or services to a
customer, excluding amounts collected on behalf of third party, if the trade
receivables do not contain a significant financing component at initial recognition.
Subsequent measurement 
Investments in debt instruments
Subsequent measurement of debt instruments depends on the Group’s business IFRS 9.5.2.1
model for managing the asset and the contractual cash flow characteristics of the
asset. The three measurement categories for classification of debt instruments
are:
(i) Amortised cost
IFRS 9.4.1.2
Financial assets that are held for the collection of contractual cash flows
where those cash flows represent solely payments of principal and interest
are measured at amortised cost. Financial assets are measured at amortised
cost using the effective interest method, less impairment. Gains and losses
are recognised in profit or loss when the assets are derecognised or
impaired, and through amortisation process.
(ii) Fair value through other comprehensive income (FVOCI)
Financial assets that are held for collection of contractual cash flows and for IFRS 9.4.1.2A
selling the financial assets, where the assets’ cash flows represent solely
payments of principal and interest, are measured at FVOCI. Financial assets
measured at FVOCI are subsequently measured at fair value. Any gains or
losses from changes in fair value of the financial assets are recognised in
other comprehensive income, except for impairment losses, foreign
exchange gains and losses and interest calculated using the effective
interest method are recognised in profit or loss. The cumulative gain or loss
previously recognised in other comprehensive income is reclassified from
equity to profit or loss as a reclassification adjustment when the financial
asset is de-recognised.
(iii) Fair value through profit or loss
IFRS 9.4.1.4
Assets that do not meet the criteria for amortised cost or FVOCI are
measured at fair value through profit or loss. A gain or loss on a debt
instruments that is subsequently measured at fair value through profit or
loss and is not part of a hedging relationship is recognised in profit or loss in
the period in which it arises.


2.15 Financial instruments (continued)
a) Financial assets
Investments in equity instruments

IFRS 9.4.1.4
On initial recognition of an investment in equity instrument that is not held for
trading, the Group may irrevocably elect to present subsequent changes in fair IFRS 9.5.7.5
value in OCI. Dividends from such investments are to be recognised in profit or loss IFRS 9.5.7.6
when the Group’s right to receive payments is established. For investments in
equity instruments which the Group has not elected to present subsequent changes IFRS 9.5.7.1
in fair value in OCI, changes in fair value are recognised in profit or loss.
Derivatives
Derivatives are initially recognised at fair value on the date a derivative contract is
entered into and are subsequently remeasured to their fair value at the end of each
reporting period. Changes in fair value of derivatives are recognised in profit or
loss.
Derecognition
IFRS 9.3.2.3
A financial asset is derecognised where the contractual right to receive cash flows
from the asset has expired. On derecognition of a financial asset in its entirety, the
difference between the carrying amount and the sum of the consideration received
and any cumulative gain or loss that had been recognised in other comprehensive
income for debt instruments is recognised in profit or loss.
b) Financial liabilities
Initial recognition and measurement
Financial liabilities are recognised when, and only when, the Group becomes a party IFRS 9.3.1.1
to the contractual provisions of the financial instrument. The Group determines the
classification of its financial liabilities at initial recognition.
All financial liabilities are recognised initially at fair value plus in the case of IFRS 9.5.1.1
financial liabilities not at fair value through profit or loss, directly attributable
transaction costs.
Subsequent measurement
After initial recognition, financial liabilities that are not carried at fair value through IFRS 9.5.7.2
profit or loss are subsequently measured at amortised cost using the effective
interest method. Gains and losses are recognised in profit or loss when the
liabilities are derecognised, and through the amortisation process.
De-recognition
IFRS 9.3.3.1
A financial liability is de-recognised when the obligation under the liability is IFRS 9.3.3.4
discharged or cancelled or expires. On derecognition, the difference between the
carrying amounts and the consideration paid is recognised in profit or loss.


Commentary :
Transfers between fair value hierarchy
 The policy for determining the timing of transfers between levels of the fair value IFRS 13.95
hierarchy include the following:
(a) The date of the event or change in circumstances that caused the transfer
(b) the beginning of the reporting period
(c) the end of the reporting period
The policy about the timing of recognising transfers shall be the same for transfers into
levels as for transfers out of the levels. 
Option to designate a financial asset at fair value through profit or loss
 In this illustration, no financial instrument has been designated as financial assets or

financial liabilities at fair value through profit or loss. The following disclosures of
accounting policies apply if there is any financial asset or financial liability designated as
at fair value through profit or loss:
Financial asset
(a) The nature of the financial assets the entity has designated as measured fair value IFRS 7.B5.aa
through profit or loss; and
(b) How the entity has satisfied the criteria for such designations.
Financial liabilities 
(a) The nature of the financial liabilities the entity has designated as measured at fair IFRS 7.B5.a
value through profit or loss;
(b) The criteria for designating such financial liabilities on initial recognition; and
(c) How the entity has satisfied the conditions for such designations.
 For financial liabilities designated at fair value through profit or loss at initial recognition IFRS 7.10
in accordance with paragraph 4.2.2 of IFRS 9 and is required to present the effects of
changes in that liability’s credit risk in other comprehensive income, the following
disclosures are required:
(a) The amount of change, cumulatively, in the fair value of the financial liability that is
attributable to changes in the credit risk of that liability.
(b) The difference between the financial liability’s carrying amount and the amount the
entity would be contractually required to pay at maturity to the holder of the
obligation.
(c) Any transfers of the cumulative gain or loss within equity during the period including
the reason for such transfers.
(d) If a liability is derecognised during the period, the amount (if any) presented in other
comprehensive income that was realised at derecognition.



Transfers between fair value hierarchy
 In this illustration, transfers between levels of the fair value hierarchy are not common
for the Group.
Illustrative accounting policy for transfers between levels of the fair value hierarchy.
Transfers between levels of the fair value hierarchy are deemed to have occurred on IFRS 13.95
the date of the event or change in circumstances that caused the transfers.
Regular way purchases and sales
 In this illustration, the Group does not have regular way purchases and sales of financial
assets.
Illustrative accounting policy for regular way purchase and sale of a financial asset:
All regular way purchases and sales of financial assets are recognised or IFRS 9.3.1.2
derecognised on the trade date i.e. the date that the Group commits to purchase or
sell the asset. Regular way purchases or sales are purchases or sales of financial
assets that require delivery of assets within the period generally established by
regulation or convention in the marketplace concerned.
Alternatively, regular way purchases and sales can be accounted for on settlement dates.
Financial liabilities at fair value through profit or loss which are held for trading
 In this illustration, financial liabilities at fair value through profit or loss which are
classified as held for trading are not significant to the Group.
Illustrative accounting policies for financial liabilities at fair value through profit or loss
which are classified as held for trading (if significant):
Financial liabilities at fair value through profit or loss include financial liabilities held IFRS 9.4.2.1.a
for trading. Financial liabilities are classified as held for trading if they are acquired
for the purpose of selling in the near term. This category includes derivative financial
instruments entered into by the Group that are not designated as hedging
instruments in hedge relationships. Separated embedded derivatives are also
classified as held for trading unless they are designated as effective hedging
instruments.
Subsequent to initial recognition, financial liabilities at fair value through profit or
loss are measured at fair value. Any gains or losses arising from changes in fair value
of the financial liabilities are recognised in profit or loss.


De-recognition of financial assets
 In this illustration, there is no transfer of financial asset.

Illustrative accounting policy when the entity transfers its financial asset:
A financial asset (or, where applicable a part of a financial asset or part of a group of
similar financial asset) is de-recognised when:
(a) The Group transfers the contractual rights to receive the cash flows of the IFRS 9.3.2.4.a
financial asset; or
(b) The Group retains the contractual rights to receive the cash flows of the IFRS 9.3.2.4.b and
financial asset, but assumes a contractual obligation to pay the cash flows to 3.2.5
one or more recipients in a “past-through” arrangement; or
IFRS 9.3.2.6
(c) The Group has transferred its rights to receive cash flows from the asset and
either has transferred substantially all the risks and rewards of the asset, or has
neither transferred nor retained substantially all the risks and rewards of the
asset, but has transferred control of the asset.
Where the Group has transferred its rights to receive cash flows from an asset and IFRS 9.3.2.6.c.ii
has neither transferred nor retained substantially all the risks and rewards of the
IFRS 9.3.2.16.a
asset nor transferred control of the asset, the asset is recognised to the extent of the
Group’s continuing involvement in the asset. Continuing involvement that takes the
form of a guarantee over the transferred asset, is measured at the lower of the
original carrying amount of the asset and the maximum amount of consideration that
the Group could be required to repay.
Where continuing involvement takes the form of a written and/or purchased option IFRS 9.3.2.6.b
IFRS 9.3.2.6.c
on the transferred asset, the extent of the Group’s continuing involvement is the
amount of the transferred asset that the Group may repurchase, except that in the
case of a written put option on an asset measured at fair value, the extent of the
Group’s continuing involvement is limited to the lower of the fair value of the
transferred asset and the option exercise price.
If the Group have transfers of financial assets that are not derecognised in their entirety
or transfers of financial assets that are derecognised in their entirety but retains
continuing involvement, please refer to disclosure requirements of paragraphs 42A to
42H and AGB 29 to AGB 39 of IFRS 7.
IFRS 7.B5.aa
IFRS 7.B5.a


2.16 Impairment of financial assets 
The Group recognises an allowance for expected credit losses (ECLs) for all debt IFRS 9.5.5.1
instruments not held at fair value through profit or loss and financial guarantee
contracts. ECLs are based on the difference between the contractual cash flows due in
accordance with the contract and all the cash flows that the Group expects to receive,
discounted at an approximation of the original effective interest rate. The expected
cash flows will include cash flows from the sale of collateral held or other credit
enhancements that are integral to the contractual terms.
ECLs are recognised in two stages. For credit exposures for which there has not been a IFRS 9.5.5.3
IFRS 9.5.5.5
significant increase in credit risk since initial recognition, ECLs are provided for credit
losses that result from default events that are possible within the next 12-months (a
12-month ECL). For those credit exposures for which there has been a significant
increase in credit risk since initial recognition, a loss allowance is recognised for credit
losses expected over the remaining life of the exposure, irrespective of timing of the
default (a lifetime ECL).
IFRS 9.5.5.15
For trade receivables and contract assets, the Group applies a simplified approach in
IFRS 9.B5.5.35
calculating ECLs. Therefore, the group does not track changes in credit risk, but
instead recognises a loss allowance based on lifetime ECLs at each reporting date. The
Group has established a provision matrix that is based on its historical credit loss
experience, adjusted for forward-looking factors specific to the debtors and the
economic environment.
For debt instruments at fair value through OCI, the Group applies the low credit risk IFRS 9.5.5.3
IFRS 9.5.5.5
simplification. At every reporting date, the Group evaluates whether the debt
instrument is considered to have low credit risk using all reasonable and supportable
information that is available without undue cost or effort. In making that evaluation,
the Group reassesses the internal credit rating of the debt instrument. In addition, the
Group considers that there has been a significant increase in credit risk when the
contractual payments are more than 30 days past due.
IFRS 7.35F.b
The Group considers a financial asset in default when contractual payments are 90 IFRS 9.5.5.9
days past due. However, in certain cases, the Group may also consider a financial asset IFRS 9.B5.5.37
to be in default when internal or external information indicates that the Group is
unlikely to receive the outstanding contractual amounts in full before taking into
account any credit enhancements held by the Group. A financial asset is written off IFRS 9.B5.4.9
when there is no reasonable expectation of recovering the contractual cash flows.
Additional illustrative disclosures
Impairment for purchased originated credit-impaired financial assets
 In this illustration, the Group does not have purchased or originated credit-impaired
financial assets.
Illustrative accounting policy on impairment for purchased or originated credit-impaired
financial assets is as follows:
For purchased or originated credit-impaired financial assets, the Group recognises the
cumulative changes in lifetime expected credit losses since initial recognition,
discounted at the credit-impaired effective interest rate (EIR) as a loss allowance. The
EIR for purchased or originated credit-impaired financial assets is calculated taking into
account the initial lifetime ECLs in the estimated cash flows. At each reporting date, the
Group recognises the amount of the changes in lifetime expected credit losses as an
impairment gain or loss. Favourable changes in lifetime expected credit losses are
recognised as an impairment gain, even if the lifetime expected credit losses are less
than the amount of expected credit losses that were included in the estimated cash
flows on initial recognition.


2.17 Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and on hand, demand deposits, and IAS 7.46
short-term, highly liquid investments th at are readily convertible to known amount of IAS 7.6
cash and which are subject to an insignificant risk of changes in value. These also IAS 7.8
include bank overdrafts that form an integral part of the Group’s cash management.
2.19 Development properties
Development properties are properties acquired or being constructed for sale in the IAS 2.6.a and b
ordinary course of business, rather than to be held for the Group’s own use, rental or
capital appreciation.
Development properties are held as inventories and are measured at the lower of cost IAS 2.9
and net realisable value.
Net realisable value of development properties is the estimated selling price in the IAS 2.6 and 36.a
ordinary course of business, based on market prices at the reporting date and
discounted for the time value of money if material, less the estimated costs of
completion and the estimated costs necessary to make the sale.
The costs of development properties recognised in profit or loss on disposal are
determined with reference to the specific costs incurred on the property sold and an
allocation of any non-specific costs based on the relative size of the property sold.
2.20 Inventories
Inventories are stated at the lower of cost and net realisable value. Costs incurred in IAS 2.9, 10 and 36.a
bringing the inventories to their present location and condition are accounted for as
follows:
- Raw materials: purchase costs on a first-in first-out basis.  IAS 2.25
IAS 2.12 and 13

- Finished goods and work-in-progress: costs of direct materials and labour and a
proportion of manufacturing overheads based on normal operating capacity. These
costs are assigned on a first-in first-out basis.
Where necessary, allowance is provided for damaged, obsolete and slow moving items
to adjust the carrying value of inventories to the lower of cost and net realisable value.
Net realisable value is the estimated selling price in the ordinary course of business, less IAS 2.6 and 36.a
estimated costs of completion and the estimated costs necessary to make the sale.
Commentary:
Cost formulas
IAS 2.25
 Alternatively, the costs may be assigned by using the weighted average cost formula. An
entity shall use the same cost formula for all inventories having a similar nature and use
to the entity. For inventories with a different nature or use, different cost formulas may
be justified.


2.21 Provisions 
General
IAS 37.14
Provisions are recognised when the Group has a present obligation (legal or
constructive) as a result of a past event, it is probable that an outflow of resources
embodying economic benefits will be required to settle the obligation and the amount
of the obligation can be estimated reliably.
Provisions are reviewed at the end of each reporting period and adjusted to reflect the IAS 37.59
current best estimate. If it is no longer probable that an outflow of economic resources
will be required to settle the obligation, the provision is reversed. If the effect of the IAS 37.45-47
time value of money is material, provisions are discounted using a current pre-tax rate
that reflects, where appropriate, the risks specific to the liability. When discounting is
IAS 37.60
used, the increase in the provision due to the passage of time is recognised as a finance
cost.
Warranty provisions
Provisions for warranty-related costs are recognised when the product is sold or
service provided. Initial recognition is based on historical experience. The initial
estimate of warranty-related costs is revised annually.
 In this illustration, the Group does not have any decommissioning liability or restructuring
provision.
Provision for de-commissioning costs
Illustrative accounting policy for de-commissioning liability when the related asset is
measured using the cost model:
The provision for de-commissioning costs arose on construction of a manufacturing IAS 16.16.c
facility for the production of fire retardant materials. De-commissioning costs are
IAS 37.45
provided at the present value of expected costs to settle the obligation using
estimated cash flows and are recognised as part of the cost of that particular asset. IAS 37.47
The cash flows are discounted at a current pre-tax rate that reflects the risks specific IFRIC 1.8
to the de-commissioning liability. The unwinding of the discount is expensed as
incurred and recognised in profit or loss as a finance cost. The estimated future costs IAS 37.59
of decommissioning are reviewed annually and adjusted as appropriate. Changes in IFRIC 1.5
the estimated future costs or in the discount rate applied are added to or deducted
from the cost of the asset.
Restructuring provision
Illustrative accounting policy for restructuring provisions:

Restructuring provisions are only recognised when the group has a constructive IAS 37.71
obligation, which is when: (i) there is a detailed formal plan that identifies the IAS 37.72
business or part of the business concerned, the location and the number of
employee affected, the detailed estimate of the associated costs, and the timeline;
and (ii) the employees affected have been notified of the plan’s main features.


2.22 Government grants
Government grants are recognised when there is reasonable assurance that the grant IAS 20.39.a
IAS 20.7
will be received and all attaching conditions will be complied with. Where the grant
relates to an asset, the fair value is recognised as deferred capital grant on the balance IAS 20.23 and 24
sheet and is amortised to profit or loss over the expected useful life of the relevant
asset by equal annual instalments. 
Where loans or similar assistance are provided by governments or related institutions IAS 20.10A
with an interest rate below the current applicable market rate, the effect of this
favourable interest is regarded as additional government grant.
Commentary:
Government grants related to an asset
 Alternatively, government grants related to an asset may be presented in the balance IAS 20.24
sheet by deducting the grant in arriving at the carrying amount of the asset.
IAS 20.23
In this illustration, it is assumed that the Group did not receive non-monetary government
grants. If an entity receives non-monetary government grant, the asset and the grant may
be accounted for either at fair value or at nominal amount.
Government grants related to income
 Government grant shall be recognised in profit or loss on a systematic basis over the IAS 20.12
periods in which the entity recognises as expenses the related costs for which the grants
are intended to compensate. Grants related to income may be presented as a credit in IAS 20.29
profit or loss, either separately or under a general heading such as “Other income”.
Alternatively, they are deducted in reporting the related expenses.
2.23 Financial guarantee
A financial guarantee contract is a contract that requires the issuer to make specified IFRS 9.App A
payments to reimburse the holder for a loss it incurs because a specified debtor fails to
make payment when due in accordance with the terms of a debt instrument.
Financial guarantees are recognised initially as a liability at fair value, adjusted for IFRS 9.5.1.1
transaction costs that are directly attributable to the issuance of the guarantee.
Subsequent to initial recognition, financial guarantees are measured at the higher of
the amount of expected credit loss determined in accordance with the policy set out in IFRS 9.4.2.1.C
Note 2.16 and the amount initially recognised less, when appropriate, the cumulative
amount of income recognised over the period of the guarantee.


2.24 Borrowing costs

IAS 23.8
Borrowing costs are capitalised as part of the cost of a qualifying asset if they are
directly attributable to the acquisition, construction or production of that asset.
Capitalisation of borrowing costs commences when the activities to prepare the asset IAS 23.17
for its intended use or sale are in progress and the expenditures and borrowing costs
are incurred. Borrowing costs are capitalised until the assets are substantially IAS 23.22
completed for their intended use or sale. All other borrowing costs are expensed in the IAS 23.8
period they occur. Borrowing costs consist of interest and other costs that an entity IAS 23.5
incurs in connection with the borrowing of funds.
2.25 Convertible redeemable preference shares 
Convertible redeemable preference shares are separated into liability and equity IAS 32.28
components based on the terms of the contract.
On issuance of the convertible redeemable preference shares, the fair value of the IAS 32.32
liability component is determined using a market rate for an equivalent non-convertible
bond. This amount is classified as a financial liability measured at amortised cost (net
of transaction costs) until it is extinguished on conversion or redemption in accordance
with the accounting policy set out in Note 2.15(b).
The remainder of the proceeds is allocated to the conversion option that is recognised IAS 32.31
and included in shareholders’ equity. Transaction costs are deducted from equity, net
of associated income tax. The carrying amount of the conversion option is not
remeasured in subsequent years.
Transaction costs are apportioned between the liability and equity components of the IAS 32.38
convertible redeemable preference shares based on the allocation of proceeds to the

liability and equity components when the instruments are initially recognised.
Convertible instruments with embedded derivative
 In this illustration, the convertible preference shares are classified as compound financial
instruments with liability and equity components based on the terms of the contract.
Illustrative accounting policy if the convertible instruments are classified as hybrid
instruments with embedded derivative:
Convertible loan with conversion option are accounted for as financial liability with an IFRS 9.B4.3.1
embedded equity conversion derivative based on the terms of the contract.
On issuance of convertible loans, the embedded option is recognised at its fair value as
derivative liability with subsequent changes in fair value recognised in profit or loss.
The remainder of the proceeds is allocated to the liability component that is carried at
IFRS 9.B4.3.3
amortised cost until the liability is extinguished on conversion or redemption.
When an equity conversion option is exercised, the carrying amounts of the liability
component and the equity conversion option are derecognised with a corresponding
recognition of share capital.


2.26 Employee benefits 
a) Defined contribution plans

The Group participates in the national pension schemes as defined by the laws IAS 19.51
of the countries in which it has operations. In particular, the Singapore
companies in the Group make contributions to the Central Provident Fund
scheme in Singapore, a defined contribution pension scheme. Contributions to
defined contribution pension schemes are recognised as an expense in the
period in which the related service is performed.
b) Employee share option plans 

IFRS 2.16
Employees of the Group receive remuneration in the form of share options as
consideration for services rendered. The cost of these equity-settled share
based payment transactions with employees is measured by reference to the
fair value of the options at the date on which the options are granted which
takes into account market conditions and non-vesting conditions.  This cost
is recognised in profit or loss, with a corresponding increase in the employee
IFRS 2.21A
share option reserve, over the vesting period. The cumulative expense
recognised at each reporting date until the vesting date reflects the extent to IFRS 2.10
which the vesting period has expired and the Group’s best estimate of the
number of options that will ultimately vest. The charge or credit to profit or
IFRS 2.19-21
loss for a period represents the movement in cumulative expense recognised
as at the beginning and end of that period and is recognised in employee
benefits expense.
The employee share option reserve is transferred to retained earnings upon
expiry of the share option. 
Commentary:
Defined benefit plan
 In this illustration, the Group does not have any defined benefit plans. For illustration of
change in accounting policies relating to IAS 19 Employee Benefits for defined benefit plan,
please refer to Appendix A-2 Defined benefit plans.
Measurement of unidentifiable goods or services
 In situations where equity instruments are issued and some or all of the goods or services IFRS 2.13A
received by the entity as consideration cannot be specifically identified, the unidentified
goods or services received (or to be received) are measured as the difference between the
fair value of the share-based payment transaction and the fair value of any identifiable
goods or services received at the grant date. This is then capitalised or expensed as
appropriate.


2.26 Employee benefits  (continued)
Vesting and non-vesting conditions
 Vesting condition are conditions that determine whether the entity receives the services IFRS 2.App A
that entitle the counterparty to receive cash, other assets or equity instruments of the
entity under a share-based payment arrangement.
Vesting conditions are limited to two types:
- Service condition – a vesting condition that requires the counterparty to complete a IFRS 2.App A
specified period of service which services are provided to the entity; and
- Performance condition – a vesting condition that requires
(a) the counterparty to complete a specified period of service (i.e. a service condition);
the service requirement can be explicit or implicit and
(b) specified performance target(s) to be met while the counterparty is rendering the
required service.
IFRS 2.IG24 and
Any condition that is neither a service condition nor a performance condition would be BC171B
regarded as a non-vesting condition. Examples of non-vesting conditions are:
- A requirement to make monthly savings during the vesting period
- A requirement for a commodity index to reach a minimum level
- Restrictions on the transfer of vested equity instruments
- An agreement not to work for a competitor after the award has vested
Non-vesting conditions are to be taken into account when estimating the fair value of the IFRS 2.21
equity instruments granted.
Transfer of share option reserve
 The transfer of the employee share option reserve to retained earnings upon expiry of the
option is not mandatory. Alternatively, the employee share option reserve may be kept as a
separate reserve upon expiry of the option.

Employee leave entitlement
 In this illustration, it is assumed that employee leave entitlement is not significant and is not
included in the list of significant accounting policies.
Illustrative accounting policy for employee leave entitlement (if significant):
IAS 19.13
Employee entitlements to annual leave are recognised as a liability when they are accrued
to the employees. The undiscounted liability for leave expected to be settled wholly before
twelve months after the end of the reporting period is recognised for services rendered by
employees up to the end of the reporting period. The liability for leave expected to be IAS 19.155
settled beyond twelve months from the end of the reporting period is determined using the IAS 19.156
projected unit credit method. The net total of service costs, net interest on the liability and
remeasurement of the liability are recognised in profit or loss.


2.26 Employee benefits  (continued)
Termination benefit
 In this illustration, the Group does not provide any termination benefit to its employees. IAS 19.8
Illustrative accounting policy for termination benefit:
Termination benefits are employee benefits provided in exchange for the termination of an
employee’s employment as a result of either an entity’s decision to terminate an
employee’s employment before the normal retirement date or an employee’s decision to
accept an offer of benefits in exchange for the termination of employment.
IAS 19.165
A liability and expense for a termination benefits is recognised at the earlier of when the IAS 19.169
entity can no longer withdraw the offer of those benefits and when the entity recognises
related restructuring costs. Initial recognition and subsequent changes to termination
benefits are measured in accordance with the nature of the employment benefits, short-
term employee benefits, or other long-term employee benefits.
Modification or cancellation of employee share option plan
 In this illustration, there is no modification or cancellation of employee share option plan.

Illustrative accounting policy for modification or cancellation of employee share option plan:
Where the terms of an equity-settled transaction award are modified, the minimum IFRS 2.28, B42-B44
expense recognised is the expense as if the terms had not been modified, if the original
terms of the award are met. An additional expense is recognised for any modification that
increases the total fair value of the share-based payment transaction, or is otherwise
beneficial to the employee as measured at the date of modification.
Where the employee share option plan is cancelled, it is treated as if it vested on the date IFRS 2.28
of cancellation, and any expense that otherwise would have been recognised for services
received over the remaining vesting period is recognised immediately. This includes any
award where non-vesting conditions within the control of either the entity or the employee
are not met. However, if a new award is substituted for the cancelled award, and
designated as a replacement award on the date that it is granted, the cancelled and new
awards are treated as if they were a modification of the original award, as described in the
previous paragraph. All cancellations of equity-settled transaction awards are treated
equally.
Cash-settled share-based payment transactions
 In this illustration, the employee share option plans are equity-settled share-based payment
transactions. Cash-settled share-based payment transactions are not illustrated. IFRS 2.30
IFRS 2.32
Illustrative accounting policy for cash-settled share-based payment transactions: IFRS 2.33
The cost of a cash-settled share-based payment transaction is measured initially at fair

value at the grant date. This fair value is recognised in profit or loss over the vesting
period with recognition of a corresponding liability. Until the liability is settled, it is
remeasured at each reporting date with changes in fair value recognised in profit or loss.


2.27 Leases
a) As lessee
Finance leases which transfer to the Group substantially all the risks and IAS 17.8
rewards incidental to ownership of the leased item, are capitalised at the
inception of the lease at the fair value of the leased asset or, if lower, at the IAS 17.20
present value of the minimum lease payments. Any initial direct costs are also
added to the amount capitalised. Lease payments are apportioned between the IAS 17.25
finance charges and reduction of the lease liability so as to achieve a constant
rate of interest on the remaining balance of the liability. Finance charges are
charged to profit or loss. Contingent rents, if any, are charged as expenses in
the periods in which they are incurred.
Capitalised leased assets are depreciated over the shorter of the estimated IAS 17.27
useful life of the asset and the lease term, if there is no reasonable certainty
that the Group will obtain ownership by the end of the lease term.
IAS 17.33
Operating lease payments are recognised as an expense in profit or loss on a SIC-15.5
straight-line basis over the lease term. The aggregate benefit of incentives
provided by the lessor is recognised as a reduction of rental expense over the
lease term on a straight-line basis.
b) As lessor
Leases in which the Group does not transfer substantially all the risks and IAS 17.8
rewards of ownership of the asset are classified as operating leases. Initial IAS 17.52
direct costs incurred in negotiating an operating lease are added to the
carrying amount of the leased asset and recognised over the lease term on the
same bases as rental income. The accounting policy for rental income is set
out in Note 2.29(d). Contingent rents are recognised as revenue in the period
in which they are earned.
2.28 Non-current assets held for sale and discontinued operations
Non-current assets and disposal groups classified as held for sale are measured at the IFRS 5.15
lower of their carrying amount and fair value less costs to sell. Non-current assets and IFRS 5.6
disposal groups are classified as held for sale if their carrying amounts will be
recovered principally through a sale transaction rather than through continuing use. A
IFRS 5.32
component of the Group is classified as a ‘discontinued operation’ when the criteria to
be classified as held for sale have been met or it has been disposed of and such a
component represents a separate major line of business or geographical area of
operations or is part of a single coordinated plan to dispose of a separate major line of
business or geographical area of operations.
Property, plant and equipment and intangible assets once classified as held for sale are IFRS 5.25
not depreciated or amortised.


2.29 Revenue 

IFRS 15.47
Revenue is measured based on the consideration to which the Group expects to be
entitled in exchange for transferring promised goods or services to a customer,
excluding amounts collected on behalf of third parties.
Revenue is recognised when the Group satisfies a performance obligation by IFRS 15.31
IFRS 15.32
transferring a promised good or service to the customer, which is when the customer IFRS 15.73
obtains control of the good or service. A performance obligation may be satisfied at a
point in time or over time. The amount of revenue recognised is the amount allocated
to the satisfied performance obligation.
a) Sale of electronic equipment
The Group supplies digital and analogue electronic components for manufacturers IFRS 15.119.c
and electronic equipment for consumers.
Revenue is recognised when the goods are delivered to the customer and all IFRS 15.119.a
criteria for acceptance have been satisfied.  The goods are often sold with a right
of return and with retrospective volume discounts based on the aggregate sales
over a period of time.
The amount of revenue recognised is based on the estimated transaction price, IFRS 15.119.b
which comprises the contractual price, net of the estimated volume discounts and
adjusted for expected returns. Based on the Group’s experience with similar types
of contracts, variable consideration is typically constrained and is included in the
transaction only to the extent that it is a highly probable that a significant reversal
in the amount of cumulative revenue recognised will not occur when the
uncertainty associated with the variable consideration is subsequently resolved.
The Group recognises the expected volume discounts payable to customer where IFRS 15.119.d
IFRS 15.55
consideration have been received from customers and refunds due to expected IFRS 15.B21 and B23
returns from customers as refund liabilities. Separately, the Group recognises a
related asset for the right to recover the returned goods, based on the former
carrying amount of the good less expected costs to recover the goods, and adjusts
them against cost of sales correspondingly.
IFRS 15.59
At the end of each reporting date, the Group updates its assessment of the IFRS 15.B24
estimated transaction price, including its assessment of whether an estimate of
variable consideration is constrained. The corresponding amounts are adjusted
against revenue in the period in which the transaction price changes. The Group IFRS 15.B25
also updates its measurement of the asset for the right to recover returned goods
for changes in its expectations about returned goods. IFRS 15.119.e
The Group offers customers the option to separately purchase extended warranty
that provides the customer with a distinct service to the customer in addition to the IFRS 15.B29
assurance that the product complies with agreed-upon specifications. The Group
accounts for a service-type warranty as a separate performance obligation to
which the Group allocates a portion of the transaction price. The portion of the
consideration allocated to the service-type warranty is initially recorded as a
contract liability and recognised as revenue over the period the warranty services
are provided.  IFRS 15.129
IFRS 15.94
The Group has elected to apply the practical expedient to recognise the
incremental costs of obtaining a contract as an expense when incurred where the
amortisation period of the asset that would otherwise be recognised is one year or
less.


2.29 Revenue  (continued)
b) Sale of development properties

The Group develops and sells residential and commercial properties before IFRS 15.119.c
completion of construction of the properties.
Revenue is recognised when control over the property has been transferred to the IFRS 15.31
customer, either over time or at a point in time, depending on the contractual

terms and the practices in the legal jurisdictions.
For development properties whereby the Group is restricted contractually from IFRS 15.119.a
IFRS 15.41
directing the properties for another use as they are being developed and has an
enforceable right to payment for performance completed to date, revenue is
recognised over time, based on the construction and other costs incurred to date
as a proportion of the estimated total construction and other costs to be incurred.
IFRS 15.119.a
For development properties whereby the Group does not have an enforceable right
to payment for performance completed to date, revenue is recognised when the
customer obtains control of the asset. 
IFRS 15.119.b
Progress billings to the customers are based on a payment schedule in the contract IFRS 15.105
and are typically triggered upon achievement of specified construction milestones.
A contract asset is recognised when the Group has performed under the contract
but has not yet billed the customer. Conversely, a contract liability is recognised
when the Group has not yet performed under the contract but has received
advanced payments from the customer. Contract assets are transferred to
receivables when the rights to consideration become unconditional. Contract
liabilities are recognised as revenue as the Group performs under the contract. 
Incremental costs of obtaining a contract are capitalised if these costs are IFRS 15.91
IFRS 15.95
recoverable. Costs to fulfil a contract are capitalised if the costs relate directly to
the contract, generate or enhance resources used in satisfying the contract and are
expected to be recovered. Other contract costs are expensed as incurred.
Capitalised contract costs are subsequently amortised on a systematic basis as the IFRS 15.127.b
IFRS 15.101
Group recognises the related revenue. An impairment loss is recognised in profit or
loss to the extent that the carrying amount of the capitalised contract costs
exceeds the remaining amount of consideration that the Group expects to receive
in exchange for the goods or services to which the contract costs relates less the
costs that relate directly to providing the goods and that have not been recognised
as expenses.
c) Sale and installation of fire prevention equipment
The Group produces and installs fire prevention equipment, extinguishers and fire IFRS 15.119.c
retardant fabrics. The sale of equipment and rendering of installation service are
either sold separately, or in bundled packages where discounts are provided to
customers. For bundled packages, the Group accounts for the sale of equipment
and installation service separately.  The transaction price is allocated to the sale
of equipment and installation services based on their relative stand-alone selling
prices.
For the sale of equipment, revenue is recognised upon delivery of the equipment to IFRS 15.119.a
the customer and accepted by the customer. For the installation of the fire
prevention equipment, revenue is recognised over time, based on the actual labour
hours spent relative to the total expected labour hours.


d) Rental income
Rental income arising from operating leases on investment properties is accounted IAS 17.50
for on a straight-line basis over the lease terms. The aggregate costs of incentives IFRIC 15.5
provided to lessees are recognised as a reduction of rental income over the lease
term on a straight-line basis.
Commentary:
 Disclosures on performance obligations
IFRS 15.119
IFRS 15.119 sets out the disclosures required about an entity’s performance
obligations in contracts with customers, including a description of all of the
following:
(a) when the entity typically satisfies its performance obligations (e.g. upon
shipment, upon delivery, as services are rendered or upon completion of
service), including when performance obligations are satisfied in a bill-and-
hold arrangement;
(b) the significant payment terms (for example, when payment is typically due,
whether the contract has a significant financing component, whether the
consideration amount is variable and whether the estimate of variable
consideration is typically constrained);
(c) the nature of the goods or services that the entity has promised to transfer,
highlighting any performance obligations to arrange for another party to
transfer goods or services (i.e. if the entity is acting as an agent);
(d) obligations for returns, refunds and other similar obligations; and
(e) types of warranties and related obligations.
Each entity needs to tailor the disclosures based on its specific circumstances.
 Contract asset and contract liability

In this illustration, the Group uses the terms “contract asset” and “contract liability”. IFRS 15.109
IFRS 15 does not prohibit the use of alternative descriptions for “contract asset” and
“contract liability”. If the Group chooses to use an alternative description for “contract
asset”, it is required to provide sufficient information for a user of the financial statements
to distinguish between receivables (i.e. unconditional right to consideration where only the
passage of time is required before payment of consideration is due) and contract assets.
 Assurance-type versus service-type warranty IFRS 15.B28-B30
In this illustration, the Group provides service-type warranty (i.e. the warranty is a distinct
service in addition to the assurance that the product complies with agreed-upon
specifications) which is a separate performance obligation to which the Group allocates a
portion of the transaction price under IFRS 15.
This is to be distinguished from assurance-type warranty which is not a distinct service and
is accounted for as a provision for warranty under IAS 37 Provisions, Contingent Liabilities
and Contingent Assets.


Commentary:
 Identification of distinct performance obligations
In this illustration, for bundled packages, the Group accounts for the sale of equipment and
IFRS 15.27
installation service separately as they are assessed to be distinct, that is, the customer can
benefit from the good or service on its own or together with other readily available
resources and the Group’s promise to transfer the good or service to the customer is
separately identifiable from other promises in the contract.
If the promises in the bundled package are assessed to be not distinct, the disclosure
should be tailored accordingly.
Satisfaction of performance obligations at a point in time

 In this illustration, the Group typically satisfies its performance obligations for the sale of
goods when the goods are “delivered and accepted by customers”.
If the Group has bill-and-hold arrangements or consignment arrangements, the Group has
to consider disclosing further information that is relevant to when it typically satisfies its
performance obligations. The following illustrative disclosures can be considered:
Bill-and-hold arrangements
In some bill-and-hold arrangements, even though the Group has not yet delivered the IFRS 15.B79-B82
goods to the customer, it has satisfied its performance obligation as control of the good
has been transferred to the customer, and all of the following criteria are met: the
reason for the bill-and-hold arrangement is substantive, the product is identified
separately as belonging to the customer, the product currently is ready for physical
transfer to the customer, and the Group does not have the ability to use the good or to
direct it to another customer.
Consignment arrangements
In some consignment arrangements, although the good has been delivered to the IFRS 15.B77-B78
customer, the Group retains control of the good and satisfies its performance obligation
only upon the sale of the good to the end-customer of the customer.
Entity acting as agent
 In this illustration, the Group does not have performance obligations to arrange for another
party to transfer goods or services (i.e. acting as an agent). An illustrative disclosure is as
follows:
The Group acts as an agent to provide a service of arranging for another party to
IFRS 15.B34-B38
transfer goods or services to a customer. The Group recognises a commission fee, being
the net amount of consideration that the Group retains after paying the other party the
consideration received in exchange for the goods or services to be provided by that
party.



 Determining the transaction price
(a) Significant financing component
In this illustration, the Group does not have any significant financing component in its
contracts with customers. An illustrative disclosure is as follows:
In determining the transaction price, the Group adjusts the promised consideration IFRS 15.60
for the effects of the time value of money for contracts with customers that include
a significant financing component. In adjusting for the significant financing IFRS 15.64
component, the Group uses a discount rate that would be reflected in a separate
financing transaction between the Group and its customer at contract inception,
such that it reflects the credit characteristics of the party receiving financing in the
contract.
If the practical expedient on the accounting for significant financing component is
elected, an illustrative disclosure is as follows:
The Group has elected to apply the practical expedient not to adjust the transaction
IFRS 15.129
price for the existence of significant financing component when the period between
IFRS 15.63
the transfer of control of good or service to a customer and the payment date is one
year or less.
(b) Consideration payable to customers
In this illustration, the Group does not have any consideration payable to customers. An
illustrative disclosure is as follows:
The Group accounts for consideration payable to customers as a reduction of the IFRS 15.70-71
transaction price if the payment is not for distinct goods or services received from
the customer. If the payment is for distinct goods or services received from the
customer, the Group accounts for any excess of the consideration payable to the
customer over the fair value of the distinct goods or services as a reduction of the
transaction price. If the Group cannot reasonably estimate the fair value of the
goods or services received from the customer, it accounts for all of the consideration
payable to the customer as a reduction of the transaction price.
The Group recognises the reduction of revenue at the later of: (a) when it recognises IFRS 15.72
revenue for the transfer of the related goods or services to the customer; and (b)
when it promises to pay the consideration.
(c) Contract modifications
In this illustration, the Group does not have contract modifications. An illustrative
disclosure is as follows:
The Group accounts for contract modifications arising from change orders to modify the IFRS 15.20-21
scope or price of the contract as separate contracts if the modification adds distinct
goods or services at their standalone selling prices. For contract modifications that add
distinct goods or services but not at their standalone selling prices, the Group combines
the remaining consideration in the original contract with the consideration promised in
the modification to create a new transaction price that is then allocated to all remaining
performance obligations. For contract modifications that do not add distinct goods or
services, the Group accounts for the modification as continuation of the original
contract and is recognised as a cumulative adjustment to revenue at the date of
modification.


2.30 Taxes
a) Current income tax

Current income tax assets and liabilities for the current and prior periods are IAS 12.46
measured at the amount expected to be recovered from or paid to the taxation
authorities. The tax rates and tax laws used to compute the amount are those
that are enacted or substantively enacted at the end of the reporting period, in
the countries where the Group operates and generates taxable income.
Current income taxes are recognised in profit or loss except to the extent that IAS 12.58 and 61A
the tax relates to items recognised outside profit or loss, either in other
comprehensive income or directly in equity. Management periodically
evaluates positions taken in the tax returns with respect to situations in which
applicable tax regulations are subject to interpretation and establishes
provisions where appropriate.
b) Deferred tax
Deferred tax is provided using the liability method on temporary differences at IAS 12.22.c
the end of the reporting period between the tax bases of assets and liabilities
and their carrying amounts for financial reporting purposes.
Deferred tax liabilities are recognised for all temporary differences, except:
IAS 12.39
- Where the deferred tax liability arises from the initial recognition of
goodwill or of an asset or liability in a transaction that is not a business
combination and, at the time of the transaction, affects neither the
accounting profit nor taxable profit or loss; and
- In respect of taxable temporary differences associated with investments in
subsidiaries, associates and interests in joint ventures, where the timing of IAS 12.34
the reversal of the temporary differences can be controlled and it is
probable that the temporary differences will not reverse in the foreseeable
future.
Deferred tax assets are recognised for all deductible temporary differences,
the carry forward of unused tax credits and unused tax losses, to the extent IAS 12.24
that it is probable that taxable profit will be available against which the IAS 12.44
deductible temporary differences, and the carry forward of unused tax credits
and unused tax losses can be utilised except:
- Where the deferred tax asset relating to the deductible temporary
difference arises from the initial recognition of an asset or liability in a
transaction that is not a business combination and, at the time of the
transaction, affects neither the accounting profit nor taxable profit or loss;
and
- In respect of deductible temporary differences associated with
investments in subsidiaries, associates and interests in joint ventures,
deferred tax assets are recognised only to the extent that it is probable
that the temporary differences will reverse in the foreseeable future and
taxable profit will be available against which the temporary differences can
be utilised.


2.30 Taxes (continued)
b) Deferred tax (continued)

The carrying amount of deferred tax assets is reviewed at the end of each IAS 12.56
reporting period and reduced to the extent that it is no longer probable that
sufficient taxable profit will be available to allow all or part of the deferred tax
asset to be utilised. Unrecognised deferred tax assets are reassessed at the IAS 12.37
end of each reporting period and are recognised to the extent that it has
become probable that future taxable profit will allow the deferred tax asset to
be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are IAS 12.47
expected to apply in the year when the asset is realised or the liability is
settled, based on tax rates (and tax laws) that have been enacted or
substantively enacted at the end of each reporting period.
Deferred tax relating to items recognised outside profit or loss is recognised IAS 12.58, 61A and
66
outside profit or loss. Deferred tax items are recognised in correlation to the
underlying transaction either in other comprehensive income or directly in
equity and deferred tax arising from a business combination is adjusted against
goodwill on acquisition.
c) Sales tax
Revenues, expenses and assets are recognised net of the amount of sales tax
except:
- Where the sales tax incurred on a purchase of assets or services is not
recoverable from the taxation authority, in which case the sales tax is
recognised as part of the cost of acquisition of the asset or as part of the
expense item as applicable; and
- Receivables and payables that are stated with the amount of sales tax
included.


2.31 Share capital and share issuance expenses
Proceeds from issuance of ordinary shares are recognised as share capital in equity. IAS 32.37
Incremental costs directly attributable to the issuance of ordinary shares are deducted
against share capital.
2.32 Treasury shares
The Group’s own equity instruments, which are reacquired (treasury shares) are IAS 32.33
recognised at cost and deducted from equity. No gain or loss is recognised in profit or
loss on the purchase, sale, issue or cancellation of the Group’s own equity instruments.
Any difference between the carrying amount of treasury shares and the consideration
received, if reissued, is recognised directly in equity. Voting rights related to treasury
shares are nullified for the Group and no dividends are allocated to them respectively.
2.33 Contingencies
A contingent liability is:

a) a possible obligation that arises from past events and whose existence will be IAS 37.10
confirmed only by the occurrence or non-occurrence of one or more uncertain
future events not wholly within the control of the Group; or
b) a present obligation that arises from past events but is not recognised because:
(i) It is not probable that an outflow of resources embodying economic
benefits will be required to settle the obligation; or
(ii) The amount of the obligation cannot be measured with sufficient
reliability.
A contingent asset is a possible asset that arises from past events and whose existence
will be confirmed only by the occurrence or non-occurrence of one or more uncertain
future events not wholly within the control of the Group.
Contingent liabilities and assets are not recognised on the balance sheet of the Group, IAS 37.27 and 31
except for contingent liabilities assumed in a business combination that are present IFRS 3.23
obligations and which the fair values can be reliably determined.


3. Significant accounting judgements and estimates 

The preparation of the Group’s consolidated financial statements requires management to
make judgements, estimates and assumptions that affect the reported amounts of
revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities at the
end of each reporting period. Uncertainty about these assumptions and estimates could
result in outcomes that require a material adjustment to the carrying amount of the asset
or liability affected in the future periods.
Alternative simplified disclosures

 Following are illustrative disclosure when management concluded that there are no significant
judgements made in applying accounting policies and no estimation uncertainty that have a
significant risk of causing a material adjustment to the carrying amounts of assets and liabilities
within the next financial period.
The preparation of the Group’s consolidated financial statements requires management to
make judgements, estimates and assumptions that affect the reported amounts of the
revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities at the
end of reporting period. Uncertainty about these assumptions and estimates could result in
outcomes that could require a material adjustment to the carrying amount of the asset or
liability affected in the future periods. Management is of the opinion that there is no
significant judgement made in applying accounting policies and no estimation uncertainty
that have a significant risk of causing a material adjustment to the carrying amounts of
assets and liabilities within the next financial period.
3.1 Judgements made in applying accounting policies 
In the process of applying the Group’s accounting policies, management has made the
following judgements which have the most significant effect on the amounts recognised IAS 1.122
in the consolidated financial statements:
a) Sale of residential development properties

For the sale of residential development properties, the Group is required to
assess each of its contracts with customers to determine whether performance
obligations are satisfied over time or at a point in time in order to determine
the appropriate method for recognising revenue. In making the assessment,
the Group considered the terms of the contracts entered into with customers
and the provisions of relevant laws and regulations applicable to the contracts.
The assessment of whether the Group has an enforceable right to payment for
performance completed to date involves judgment made in determining the
enforceability of the right to payment under the legal environment of the
jurisdictions where the contracts are subject to.


3. Significant accounting judgements and estimates (continued)
3.1 Judgements made in applying accounting policies (continued)
Judgements made in applying accounting policies
 In this illustration, it is assumed that these are the judgements made in applying accounting
policies that has the most significant effect on the amounts recognised in the financial
statements.
Illustrative disclosures of other judgements made in applying accounting policies:
Determination of lease classification

The Group has entered into commercial property leases on its investment properties. The
Group evaluated the terms and conditions of the arrangements and made judgement on
whether the lease term constitutes a substantial portion of the economic life of the
commercial property and whether the minimum lease payment is substantially all of the
fair value of the leased asset. The Group determined that it retains all the significant
risks and rewards of ownership of these properties and so accounts for the contracts as
operating leases.
Determination of functional currency

The Group measures foreign currency transactions in the respective functional
currencies of the Company and its subsidiaries. In determining the functional
currencies of the entities in the Group, judgement is required to determine the
currency that mainly influences sales prices for goods and services and of the country
whose competitive forces and regulations mainly determines the sales prices of its
goods and services. The functional currencies of the entities in the Group are
determined based on management’s assessment of the economic environment in which
the entities operate and the entities’ process of determining sales prices.
Consolidation of entities in which the Group holds less than a majority of voting rights (de facto
control)
The Group considers that it controls Electronics Limited even though it owns less than
50% of the voting rights. This is because the Group is the single largest shareholder of
Electronics Limited with 48% equity interest. The remaining 52% of the equity shares in
Electronics Limited are widely held by many other shareholders, none of which
individually hold more than 1% of the equity shares (as recorded in the Company’s
shareholder’s register from 1st October 2012 to 31 December 2018). Since 1 October
2012, which is the date of acquisition of Electronics Limited, there is no history of
other shareholders collaborating to exercise their votes collectively or to outvote the
Group.


3.2 Key sources of estimation uncertainty  IAS 1.125
The key assumptions concerning the future and other key sources of estimation
uncertainty at the end of the reporting period are discussed below. The Group based its
assumptions and estimates on parameters available when the financial statements
were prepared. Existing circumstances and assumptions about future developments,
however, may change due to market changes or circumstances arising beyond the
control of the Group. Such changes are reflected in the assumptions when they occur.
a) Provision for expected credit losses of trade receivables and contract

assets 
The Group uses a provision matrix to calculate ECLs for trade receivables
and contract assets. The provision rates are based on days past due for
groupings of various customer segments that have similar loss patterns.
The provision matrix is initially based on the Group’s historical observed
default rates. The Group will calibrate the matrix to adjust historical credit
loss experience with forward-looking information. At every reporting date,
historical default rates are updated and changes in the forward-looking
estimates are analysed.
The assessment of the correlation between historical observed default
rates, forecast economic conditions and ECLs is a significant estimate. The
amount of ECLs is sensitive to changes in circumstances and of forecast
economic conditions. The Group’s historical credit loss experience and
forecast of economic conditions may also not be representative of
customer’s actual default in the future. The information about the ECLs on
the Group’s trade receivables and contract assets is disclosed in Note
40(a).
The carrying amount of trade receivables and contract assets as at 31
December 2018 are $24,176,000 and 3,751,000 (31 December 2017:
$24,341,000 and $6,928,000, 1 January 2017: $21,447,000 and
$3,269,000) respectively.
b) Impairment of intangible assets

As disclosed in Note 15 to the financial statements, the recoverable amounts
of the cash generating units which goodwill and brands have been allocated to
are determined based on value in use calculations. The value in use
calculations are based on a discounted cash flow models. The recoverable
amount is most sensitive to the discount rate used for the discounted cash flow
model as well as the expected future cash inflows and the growth rate used for
extrapolation purposes. The key assumptions applied in the determination of
the value in use including a sensitivity analysis, are disclosed and further
explained in Note 15 to the financial statements.
The carrying amount of the intangible assets as at 31 December 2018 is
$1,789,000 (31 December 2017: $495,000, 1 January 2017: $485,000).


3.2 Key sources of estimation uncertainty  (continued) IAS 1.125
c) Revaluation of investment properties and property, plant and equipment

The Group carries its investment properties and property, plant and equipment
at fair value, with changes in fair values being recognised in profit or loss and
other comprehensive income respectively. The Group engaged real estate
valuation experts to assess fair value as at 31 December 2018. The fair values
of investment properties and property, plant and equipment are determined by
independent real estate valuation experts using recognised valuation
techniques. These techniques comprise both the Yield Method and the
Discounted Cash Flow Method. The key assumptions used to determine the fair
value of these investment properties and property, plant and equipment and
sensitivity analysis are provided in Note 39.
The carrying amounts of the investment properties and property, plant and
equipment carried at fair value as at 31 December 2018 are $4,645,000
(31 December 2017: $3,955,000, 1 January 2017: $3,825,000) and
$15,165,000 (31 December 2017: $14,300,000, 1 January 2017:
$8,543,000) respectively.
d) Estimating variable consideration for sale of electronic equipment

Certain contracts for the sale of electronics equipment include a right of return
and volume rebates that give rise to variable consideration. In estimating
variable consideration, the Group is required to use either the expected value
method or the most likely amount method. Judgement is required in
determining which method better predicts the amount of consideration to
which it will be entitled. The method and assumptions used in determining
variable consideration and assessing constraint for sale of electronics
equipment is disclosed in Note 4(b)(i).
The Group updates its assessment of expected returns and volume rebates
quarterly and the refund liabilities are adjusted accordingly. Estimates of
expected returns and volume rebates are sensitive to changes in
circumstances and the Group’s past experience regarding returns and rebate
entitlements may not be representative of customers’ actual returns and
rebate entitlements in the future. As at 31 December 2018, the amount
recognised as refund liabilities for the expected returns and volume rebates
was $2,480,000 (31 December 2017: $5,333,000, 1 January 2017:
$3,796,000).
IFRS 7.35G.b
Commentary:
 Expected credit loss (ECL)
IFRS 7.35G.b requires an entity to disclose how forward-looking information has been
incorporated into the determination of ECL, including the use of macroeconomic
information. The Group did not provide detailed information on how the forecast economic
conditions have been incorporated in the determination of ECL because the impact is not
significant. Entities are expected to provide more detailed information if the forward-
looking information has a significant impact in the calculation of ECL.


3.2 Key sources of estimation uncertainty  (continued) IAS 1.125

Key sources of estimation uncertainty
 In this illustration, it is assumed that these are the key assumptions and estimation
uncertainty that have a significant risk of causing a material adjustment to the carrying
amounts of the assets and liabilities within the next financial year.
Illustrative disclosures of other key sources of estimation uncertainty:
Deferred tax assets

Deferred tax assets are recognised for all unused tax losses to the extent that it is
probable that taxable profit will be available against which the losses can be
utilised. Significant judgement is required to determine the amount of deferred tax
assets that can be recognised, based upon the timing and level of future taxable
profits together with future tax planning strategies. In determining the timing and
level of future taxable profits together with future tax planning strategies, the
Group assessed the probability of expected future cash inflows based on expected
revenues from existing orders and contracts for the next 10 years.
The carrying value of recognised tax losses at 31 December 2018 was $XXX (2017:
$XXX) and the unrecognised tax losses at 31 December 2018 was $XXX (2017:
$XXX).
If the Group was able to recognise all unrecognised deferred tax assets, profit would
increase by $XXX (2017: $XXX).
Provision for decommissioning

The Group has recognised a provision for decommissioning obligations associated
with a factory. In determining the fair value of the provision, assumptions and
estimates are made in relation to discount rates, the expected cost to dismantle and
remove plant from the site and the expected timing of those costs. The carrying
amount of the provision as at 31 December was $XXX (2017: $XXX). If the
estimated pre-tax discount rate used in the calculation had been XX% higher than
management’s estimate, the carrying amount of the provision would have been
$XXX (2017: $XXX) lower.



IAS 1.125
3.2 Key sources of estimation uncertainty  (continued)

Key sources of estimation uncertainty (continued)
Development costs
Development costs are capitalised in accordance with the accounting policy in Note
X. Initial capitalisation of costs is based on management’s judgement that
technological and economic feasibility is confirmed, usually when a product
development project has reached a defined milestone according to an established
project management model. In determining the amounts to be capitalised,
management makes assumptions regarding the expected future cash generation of
the project, discount rates to be applied and the expected period of benefits. As at
31 December 2018, the carrying amount of development costs capitalised at the
end of the reporting period was $XXX (2017: $XXX). If the expected future cash
generation of the project had been 20% lower than management’s estimate, the
carrying amount of development costs would have been $XXX (2017: $XXX) lower.
Estimation of net realisable value for development property

Development property is stated at the lower of cost and net realisable value (NRV).
NRV in respect of development property under construction is assessed with
reference to market prices at the reporting date for similar completed property less
estimated costs to complete construction and less an estimate of the time value of
money to the date of completion. The carrying amount of the development property
stated at net realisable value as at 31 December 2018 was $XXX (2017: $XXX). If
the estimated costs to complete construction increase by 20% from management’s
estimate, the carrying amount of development property stated would reduce by
$XXX (2017: $XXX).


4. Revenue
a) Disaggregation of revenue  IFRS 15.114
IFRS 15.115
Fire prevention
Segments Electronic equipment Development properties equipment and services Total revenue
2018 2017 2018 2017 2018 2017 2018 2017
$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
Primary geographical markets
Singapore 18,998 28,642 32,542 31,236 21,740 25,020 73,280 84,898
People’s Republic of China 22,970 23,005 – – – - 22,970 23,005
Malaysia 9,017 11,318 11,973 9,122 – – 20,990 20,440
Vietnam and others 19,480 17,260 – – – – 19,480 17,260
70,465 80,225 44,515 40,358 21,740 25,020 136,720 145,603
Major product or service lines
Electronic equipment for consumers 53,768 58,724 – – – – 53,768 58,724

Electronic components for manufacturers 16,697 21,501 – – – – 16,697 21,501
Residential properties – – 38,307 37,091 - - 38,307 37,091
Commercial properties – – 6,208 3,267 - - 6,208 3,267
Fire prevention equipment - - - - 15,420 19,670 15,420 19,670
Installation service – – – – 6,320 5,350 6,320 5,350
70,465 80,225 44,515 40,358 21,740 25,020 136,720 145,603
Timing of transfer of goods or services
At a point in time 70,465 80,225 6,208 3,267 15,420 19,670 92,093 103,162
Over time – – 38,307 37,091 6,320 5,350 44,627 42,441
70,465 80,225 44,515 40,358 21,740 25,020 136,720 145,603


4. Revenue (continued)
b) Judgement and methods used in estimating revenue
(i) Estimating variable consideration for sale of electronic equipment 
In estimating the variable consideration for the sale of electronic equipment, the IFRS 15.126
Group uses the expected value method to predict the volume discounts and product
returns, by the different product types and geographical areas. For existing
products, management relies on historical experience with purchasing patterns and
product returns of customers, analysed by different product types, customers and
geographical areas, for the past 2 to 4 years. For new products, management uses
the historical trends for purchasing patterns and returns for similar products in the
same geographical area, and adjusted for higher return rates based on historical
trends for new product launches, so as to determine the projection for new product
returns.
IFRS 15.123
Management has exercised judgement in applying the constraint on the estimated
variable consideration that can be included in the transaction price. For volume
discounts, management has determined that a portion of the estimated variable
consideration is subject to the constraint as, based on past experience with the
customers, it is highly probable that a significant reversal in the cumulative amount
of revenue recognised will occur, and therefore will not be recognised as revenue.
For product returns, management considers its historical experience and evidence
from other similar contracts to develop an estimate of variable consideration for
expected returns using the expected value method.
(ii) Recognition of revenue from of development properties over time 
For the sale of development properties where the Group satisfies its performance IFRS 15.126
IFRS 15.74
obligations over time, management has determined that a cost-based input method
provides a faithful depiction of the Group’s performance in transferring control of
the development properties to the customers, as it reflects the Group’s efforts
incurred to date relative to the total inputs expected to be incurred for the
development properties. The measure of progress is based on the costs incurred to
date as a proportion of total costs expected to be incurred up to the completion of
the development properties.
The estimated total construction and other related costs are based on contracted IFRS 15.124
amounts and, in respect of amounts not contracted for, management relies on past
experience and knowledge of the project engineers to make estimates of the
amounts to be incurred. In making these estimates, management takes into
consideration the historical trends of the amounts incurred in its other similar
development properties, analysed by different property types and geographical
areas for the past 3 to 5 years.
iii) Determining transaction price and amounts allocated to sale and installation of fire
prevention equipment 
IFRS 15.126
For the bundled packages of sale and installation of fire prevention equipment, the IFRS 15.74
Group allocates the transaction price to the sale of equipment and installation service
based on their relative stand-alone selling prices. The standalone selling prices are
determined based on estimated costs plus margin.
For the installation of the fire prevention equipment, revenue is recognised over IFRS 15.124
time, based on the actual costs incurred relative to the total estimated costs. The
estimated costs are based on contracted amounts and, in respect of amounts not
contracted for, management relies on past experience and knowledge of the project
engineers to make estimates of the amounts to be incurred. In making these
estimates, management takes into consideration the historical trends of the
amounts incurred in its similar installation services.


c) Contract assets and contract liabilities
Information about receivables, contract assets and contract liabilities from contracts IFRS 15.116.a
with customers is disclosed as follows:
Group
As at 31 As at 1
December January
2018 2017 2017
$’000 $’000 $’000
Receivables from contracts with customers (Note 21) 24,176 24,341 21,447
Contract assets 3,751 6,928 3,269
Capitalised contract costs  658 690 490
Contract liabilities 926 1,309 1,255
The Group has recognised impairment losses on receivables arising from contracts with IFRS 15.113.b
customers amounting to $90,000 (2017: $115,000).
Contract assets primarily relate to the Group’s right to consideration for work IFRS 15.117
completed but not yet billed at reporting date for sale of development properties.
Contract assets are transferred to receivables when the rights become unconditional.
Contract liabilities primarily relate to the Group’s obligation to transfer goods or IFRS 15.117
services to customers for which the Group has received advances received from
customers for sale of development properties
Contract liabilities are recognised as revenue as the Group performs under the
contract.
(i) Significant changes in contract assets are explained as follows: IFRS 15.118
Group
2018 2017
$’000 $’000
Contract asset reclassified to receivables 1,206 1,108

Changes due to business combinations 200 -
Changes in estimate of transaction price 125 138
Impairment loss on contract asset (10) -
(ii) Significant changes in contract liabilities are explained as follows:  IFRS 15.118
Group
2018 2017
$’000 $’000
Changes due to business combinations 200 -

Revenue recognised from performance obligations
satisfied in previous years due to changes in the IFRS 15.116.C
estimated transaction price 325 268
Revenue recognised that was included in the contract IFRS 15.116.b
liability balance at the beginning of the year 478 565


d) Transaction price allocated to remaining performance obligation 
The aggregate amount of transaction price allocated to the unsatisfied (or partially IFRS 15.120.a
unsatisfied) performance obligations as at 31 December 2017 is $798,000. This IFRS 15.C5.d
amount has not included the following:

 Performance obligations for which the Group has applied the practical expedient not
to disclose information about its remaining performance obligations if:
- The performance obligation is part of a contract that has an original expected IFRS 15.121.a
duration for one year or less, or

- The Group recognises revenue in the amount to which the Group has a right to IFRS 15.121.b
invoice customers in amounts that correspond directly with the value to the IFRS 15.B16
customer of the Group’s performance completed to date.
IFRS 15.122
 Variable consideration that is constrained and therefore is not included in the
transaction price.
The Group expects to recognise $657,000 as revenue relating to the transaction price IFRS 15.120.b
allocated to the unsatisfied (or partially unsatisfied) performance obligations as at 31
December 2018 in financial year 2019 and $355,000 in the financial year 2020.
IFRS 15.128
e) Capitalised contract costs 
Group
2018 2017
$’000 $’000
Capitalised incremental costs of obtaining contract –

commission costs paid to property agents
At 1 January 295 190
Additions 85 213
Amortisation (100) (105)
Impairment loss (2) (3)
At 31 December 278 295
Capitalised fulfilment costs relating to sale of

development property
Additions 98 278
Amortisation (110) (180)
Impairment loss (3) (3)


Commentary:
 Disaggregation of revenue
Under IFRS 15.114, an entity is required to disaggregate revenue from contracts with customers IFRS 15.114
into categories that depict how the nature, amount, timing and uncertainty of revenue and cash
flows are affected by economic factors.
In this illustration, the Group has determined that disaggregation of revenue using existing
segments, geographical markets, major product lines and timing of transfer of goods (at a point
in time or over time) meets the disclosure objective in IFRS 15.114.
IFRS 15.B87
The extent to which an entity’s revenue is disaggregated depends on the facts and
circumstances of its contracts with customers. Some entities may need to use more
than one type of category while other entities may use only one type of category to
disaggregate revenue. Hence the disclosure should be tailored accordingly for each
entity.
IFRS 15.B89
Examples of categories that can be used as basis for disaggregation include:
(a) type of good or service (e.g. major product lines)
(b) geographical regions
(c) market or customer type
(d) type of contract (e.g. fixed-price and time-and-materials contracts)
(e) contract duration (e.g. short-term and long-term contracts)
(f) timing of transfer of goods or services (e.g. at a point in time or over time)
(g) sales channels (e.g. sold directly to consumers or sold through intermediaries)
When selecting the type of category to disaggregate revenue, an entity should consider how IFRS 15.B88
information about its revenue has been presented for other purposes, including earnings
releases, annual reports or investor presentations, and information regularly reviewed by the
chief operating decision maker for evaluating the financial performance of operating segments.
If the entity applies IFRS 8 Operating Segments, it must disclose sufficient information to enable IFRS 15.115
users of financial statements to understand the relationship between the disclosure of
disaggregated revenue and revenue information that is disclosed for each reporting segment.


 Methods, inputs and assumptions in determining revenue
IFRS 15.126
IFRS 15.126 sets out the disclosures required about the methods, inputs and
assumptions used for determining its transaction price and amounts allocated to
performance obligations, including all of the following:
(a) determining the transaction price, which includes, but is not limited to, estimating
variable consideration, adjusting the consideration for the effects of the time
value of money and measuring non-cash consideration;
(b) assessing whether an estimate of variable consideration is constrained;
(c) allocating the transaction price, including estimating stand-alone selling prices of
promised goods or services and allocating discounts and variable consideration to
a specific part of the contract (if applicable); and
(d) measuring obligations for returns, refunds and other similar obligations.
 Estimate of variable consideration

In this illustration, variable consideration is estimated using the expected value method. IFRS IFRS 15.53
15.53 requires the use of either the “expected value” method or the “most likely amount”
method, depending on which method the entity expects to better predict the amount of
consideration to which it will be entitled. If the “most likely amount” method is used, the
disclosure should be tailored accordingly.
 Determining the timing of satisfaction of performance obligations over time
IFRS 15.124 requires disclosures about the methods used to recognise revenue over IFRS 15.124
time and an explanation of why the methods used provide a faithful depiction of the
transfer of goods or services.
 Methods of determining progress

In this illustration, the Group has used an input method based on the costs incurred to
determine the progress of satisfaction of performance obligation for its sale of development
properties where control is transferred over time.
IFRS 15.41 requires entities to determine the appropriate method for measuring progress IFRS 15.41
by considering the nature of the good or service that is promised to be transferred to the IFRS 15.B14-B19
customer. Examples of other input methods include: resources consumed, labour hours
expended, time elapsed or machine hours used relative to the total expected inputs to the
satisfaction of that performance obligation. Examples of output methods include surveys of
performance completed to date, appraisals of results achieved, milestones reached, time
elapsed and units produced or units delivered.
If other methods are used, the disclosure should be tailored accordingly.


 Significant judgement in applying IFRS 15
IFRS 15.123
An entity is required to disclose the judgements, and changes in the judgements made
in applying IFRS 15 that significantly affect the determination of the amount and timing
of revenue from contracts with customers, Each entity needs to tailor the disclosures
based on its specific circumstances.
In particular, an entity is required to explain the judgements, and changes in the IFRS 15.123
judgements, used in determining both of the following:
(a) The timing of satisfaction of performance obligations
(b) The transaction price and the amounts allocated to performance obligations
In addition,
 A entity shall disclose the significant judgements made in evaluating when a customer IFRS 15.125
obtains control of promised goods or services for performance obligations satisfied at a
point in time.
 An entity is also required to describe the judgements made in determining the amount of IFRS 15.127.a
the costs incurred to obtain or fulfil a contract with a customer that are capitalised as an
asset.
 Presentation of capitalised contract costs
IFRS 15 is silent about on the classification of capitalised contract costs. Therefore, the
Group needs to develop an appropriate accounting policy as follows:
 Capitalised costs to obtain a contract should be either presented as (i) a separate class
of intangible assets in the statement of financial position and its amortisation in the
same line as amortisation of intangible assets, or (ii) a separate class of asset (similar to
inventory) in the statement of financial position and its amortisation within cost of
goods sold or changes in contract costs.
 Capitalised costs to fulfil a contract should be presented as a separate class of assets in
the statement of financial position and its amortisation within cost of goods sold or
changes in contract costs.
 Contract balances
IFRS 15 requires that the explanation of significant changes in the contract asset and the IFRS 15.118
contract liability balances during the reporting period include both qualitative and
quantitative information, although a tabular reconciliation of the aggregated contract
balances is not specifically required by the standard.
 Transaction price allocated to the remaining performance obligations
In this illustration, the Group has disclosed a qualitative explanation of when it expects to IFRS 15.120
recognise as revenue the amount of transaction price allocated to unsatisfied performance
obligations as of the end of the reporting period.
IFRS 15.120 allows the disclosure to be in the form of either qualitative explanation or
quantitative explanation that is based on the time bands that would be most appropriate for
the duration of the remaining performance obligations can be used. The latter approach is
not illustrated in this publication.



 Allocation of transaction price to performance obligations
In this illustration, the Group has used the relative stand-alone selling prices for the
allocation of transaction price as the stand-alone selling prices are directly
observable.
If the stand-alone selling prices are not directly observable, other suitable methods IFRS 15.78-80
for estimating the stand-alone selling price include the adjusted market assessment
approach, expected cost plus a margin approach and the residual approach, or a
combination of methods. An illustrative disclosure is as follows:
The Group has used an adjusted market assessment approach to estimate the
stand-alone selling prices for the sale of fire prevention equipment and
installation service. Management has referred to prices from competitors for
similar goods or services and adjusted those prices as necessary to reflect the
Group’s costs and margins, based on the Group’s business pricing strategies and
practices as analysed by different product types and different geographical areas
for the last 2 years.


5. Interest income 
Group
2018 2017
$’000 $’000
Interest income from:
- Debt instruments at amortised cost 382 - IFRS 7.20.b
- Debt instruments at FVOCI 48 - IFRS 7.20.b
- Loans and receivables - 255 IFRS 7.20.a.iv
- Available-for-sale financial assets - 47 IFRS 7.20.a.ii
- Held-to-maturity investment - 25 IFRS 7.20.a.iii
430 327 IFRS 7.20.a.b
Included in interest income from loans and receivables is interest of $28,000 (2017:
$22,000) from an impaired loan to a fellow subsidiary (Note 21).
6. Other income 
Group
2018 2017
$’000 $’000
Amortisation of deferred capital grants (Note 29) 239 180 IAS 20.39
Rental income from investment properties (Note 14) 315 291 IAS 40.75.f.i
Net gain from fair value adjustment of investment properties (Note 14) 489 129 IAS 40.76.d
Net gain on disposal of property, plant and equipment – 120 IAS 1.98.c
Net fair value gains on financial instruments:
Financial assets at fair value through profit or loss
- Held for trading investment securities 255 95 IFRS 7.20.a.i
- Derivatives 43 56 IFRS 7.20.a.i
- FVOCI/Available-for-sale financial assets (transferred from equity
on disposal of investment securities)  30 15 IFRS 7.20.a.ii
Gain on remeasurement of investment in associate to fair value upon

business combination achieved in stages (Note 17(d)) 140 – IFRS 3.B64.p.ii
1,511 886


7. Finance costs
Group
2018 2017
$’000 $’000
Interest expense on:
- Bank loans, bonds and bank overdrafts carried at amortised cost 1,640 1,506 IFRS 7.20.a.v
- Convertible redeemable preference shares carried at amortised cost 62 59

- Obligations under finance leases 75 30 IFRS 7.20.a.v
1,777 1,595 IFRS 7.20.b
Provisions discount adjustment (Note 28) 30 10

Less: interest expense capitalised in:
- Plant and equipment (Note 13) (57) (60) IAS 23.26.a
- Development property (Note 24) (35) (33) IAS 23.26.a
Total finance costs 1,715 1,512
8. Impairment losses on financial assets and other expenses 

The following items have been included in arriving at other expenses:
Group
2018 2017
$’000 $’000
Net loss on disposal of property, plant and equipment 76 – IAS 1.98.c

Impairment loss on property, plant and equipment (Note 13) 500 – IAS 1.98.a
Direct operating expenses arising from investment properties (Note 14) 72 65 IAS 40.75.f.ii
Fair value adjustment of contingent consideration of business

combination (Note 17)  235 - IAS 1.97
Net foreign exchange loss 136 145 IAS 21.52.a
Impairment loss on capitalised contract costs (Note 4(e)) 5 4
Impairment loss on financial assets :
- Available-for-sale investment securities (Note 22) - 210 IFRS 7.20.e
- Trade receivables (Note 21) 90 115 IFRS 7.20.e
- Contract assets (Note 21) 10 -
IFRS 7.20.e
- Loan to a fellow subsidiary (Note 40(a)) 10 100 IAS 24.18.d
- Loan to associates (Note 40(a)) 15 - IAS 24.18.d

- Debt securities carried at amortised cost (Note 40(a)) 5 -
- Debt securities carried at FVOCI (Note 40(a)) 65 -
Impairment losses on financial assets allocated by function are as follows:
Group
2018 2017
$’000 $’000
Marketing and distribution 75 95

Administrative expenses 120 330


9. Profit before tax from continuing operations 

The following items have been included in arriving at profit before tax from continuing IAS 1.97 and 104
operations:
Group
2018 2017
$’000 $’000
Audit fees:
- Auditor of the Company 400 400 SGX 1207.6a
- Other auditors 50 50
Non-audit fees:
- Auditor of the Company 250 250 SGX 1207.6a
- Other auditors 30 30
Depreciation of property, plant and equipment 3,043 2,838 IAS 1.104
Amortisation of intangible assets (Note 15) 220 252 IAS 1.104
Transactions costs incurred in a business combination  300 – IAS 1.97
Employee benefits expense (Note 35) 20,502 19,024 IAS 1.104

Inventories recognised as an expense in cost of sales (Note 25) 80,567 82,122 IAS 2.36.d
Operating lease expense (Note 37(b)) 484 387 IAS 17.35.c
Utility charges  1,428 1,486 IAS 1.97 and 104
Transportation charges  2,450 2,584 IAS 1.97 and 104
Legal and other professional fees  325 228 IAS 1.97 and 104
Commentary:
IAS 1.97 and 98
 When items of income and expense are material, their nature and amount should be disclosed
separately. Circumstances that would give rise to the separate disclosure of items of income and
expense include:
(a) Write-downs of inventories to net realisable value or of property, plant and equipment to
recoverable amount, as well as reversals of such write-downs;
(b) Restructurings of the activities of an entity and reversals of any provisions for the costs of
restructuring;
(c) Disposals of items of property, plant and equipment;
(d) Disposals of investments;
(e) Discontinued operations;
(f) Litigation settlements; and
(g) Other reversals of provisions.


9. Profit before tax from continuing operations  (continued)
 An entity shall disclose the fee income and expense (other than amounts included in determining
the effective interest rate) arising from financial assets or financial liabilities that are not at fair IFRS 7.20.c
value through profit or loss and trust and other fiduciary activities that result in the holding or
investing of assets on behalf of individuals, trusts, retirement benefit plans, and other
institutions, either on the face of the financial statements or in the notes.
Classes of financial instruments

 IFRS 7 specifies a number of disclosure requirements on the following topics to be
provided by ‘class of financial instruments’:
- Reconciliation from opening balance to closing balance of loss allowance; IFRS 7.35H
- Effect of collateral and other credit enhancements on the amounts arising from IFRS 7.35K
expected credit loss;
- Credit risk; IFRS 7.36
- Fair value of financial instruments; IFRS 7.25
- Accounting policy for recognising any difference between fair value at initial IFRS 7.28
recognition and the amount that would be determined at that date using valuation
technique and the aggregate difference yet to be recognised in profit or loss; and
IFRS 7.42D
- Transfers of financial assets that are not derecognised in their entirety.
IFRS 7 requires an entity to group financial instruments into classes that are appropriate
IFRS 7.6
to the nature of information disclosed and that take into account the characteristics of IFRS 7.AGB1
those financial instruments.
In determining classes of financial instruments, an entity shall, at a minimum: IFRS 7.AGB2
- Distinguish instruments measured at amortised cost from those measured at fair
value
- Treat as a separate class or classes those financial instruments outside the scope of
IFRS 7
The entity is also required to provide sufficient information to permit reconciliation of IFRS 7.6
the classes of financial instruments to the line items presented in the balance sheet.
 These expense items have been disclosed separately as they are considered to be material in the IAS 1.97
assumed scenario due to their size or nature.
Reclassification adjustments
 In this illustration, the entity has chosen to disclose the reclassification adjustments and current IAS 1.94
year gain or loss in the notes. An entity may choose to present this information in the statement
of comprehensive income itself.
Reclassification adjustments are amounts reclassified to profit or loss in the current period that IAS 1.7
IAS 1.92
were recognised in other comprehensive income in the current or previous periods. Such IAS 1.93
amounts must be separately disclosed. For example, when an available-for-sale financial asset is
sold, accumulated amounts previously recognised in fair value adjustment reserve will be
reclassified into profit or loss for the period.


10. Income tax expense

Major components of income tax expense
The major components of income tax expense for the years ended 31 December 2018
and 2017 are:
Group
2018 2017
$’000 $’000
Consolidated income statement:
Current income tax – continuing operations:
- Current income taxation 1,422 1,390 IAS 12.80.a
- (Over)/under provision in respect of previous years (50) 91 IAS 12.80.b
1,372 1,481
Deferred income tax – continuing operations (Note 20):
- Origination and reversal of temporary differences 191 260 IAS 12.80.c
- Benefits from previously unrecognised tax losses (6) (8) IAS 12.80.f
185 252
Income tax attributable to continuing operations 1,557 1,733
Income tax attributable to discontinued operation (Note 11) (7) (5) IAS 12.80.h
Income tax expense recognised in profit or loss 1,550 1,728
Statement of comprehensive income:
Group Company
2018 2017 2018 2017

$’000 $’000 $’000 $’000
Deferred tax expense related to other comprehensive

income: IAS 12.81.ab
- Net gain on fair value changes of FVOCI equity
instruments 50 - - -
- Net gain on fair value changes of FVOCI debt
instruments 6 - - -
- Net gain on fair value changes of available-for-
sale financial assets - 26 – –
- Net surplus on revaluation of freehold land and
buildings 256 460 – – IAS 16.42
- Share of other comprehensive income of
associates 13 2 – –
325 488 – –
Statement of changes in equity:
Deferred tax expense charged directly to equity:

- Convertible redeemable preference shares - 16 – 16 IAS 12.81.a


10. Income tax expense (continued)

Relationship between tax expense and accounting profit
A reconciliation between tax expense and the product of accounting profit multiplied by IAS 12.81.c.i
the applicable corporate tax rate for the years ended 31 December 2018 and 2017 is as
follows: 
Group
2018 2017
$’000 $’000
Profit before tax from continuing operations 7,057 9,426

Loss before tax from discontinued operation (Note 11) (551) (193)
Accounting profit before tax 6,506 9,233
Tax at the domestic rates applicable to profits in the countries where the
Group operates  1,322 1,617
Adjustments:
Non-deductible expenses  560 473
Income not subject to taxation  (170) (388)
Effect of partial tax exemption and tax relief (35) (20)
Deductions on treasury shares issued pursuant to employee share option
plan  (3) –
Deferred tax on convertible redeemable preference shares (4) (3)
Benefits from previously unrecognised tax losses (6) (8)
Deferred tax assets not recognised 46 21
(Over)/under provision in respect of previous years (50) 91
Share of results of associates (112) (56)
Others 2 1
Income tax expense recognised in profit or loss 1,550 1,728
The above reconciliation is prepared by aggregating separate reconciliations for each

national jurisdiction. 


10. Income tax expense (continued)
Commentary:
Presentation of tax reconciliation
 Alternatively, an entity may present a numerical reconciliation between the average effective IAS 12.81.c.ii and 86
tax rate (i.e., tax expense/income divided by the accounting profit) and the applicable tax
rate, disclosing also the basis on which the applicable tax rate is computed.
Income tax rate for tax reconciliation
 In explaining the relationship between tax expense/income and accounting profit, an entity IAS 12.85
uses an applicable tax rate that provides the most meaningful information to the users of its
financial statements. Often, the most meaningful rate is the domestic rate of tax in the
country in which the entity is domiciled, aggregating the tax rate applied for national taxes
with the rates applied for any local taxes which are computed on a substantially similar level
of taxable profit (tax loss). However, for an entity operating in several jurisdictions, it may be
more meaningful to aggregate separate reconciliations prepared using the domestic rate in
each individual jurisdiction.
Tax deduction for treasury shares transferred under employee share scheme
 A Singapore company is granted a tax deduction for the cost incurred in acquiring treasury
shares which are transferred to any person under a stock option scheme or share award
scheme by reason of any office or employment held in Singapore by that person.
Disclosure of nature of expenses that are not deductible for income tax purposes
 The nature of :
- expenses that are not deductible for income tax purposes; and
- income not subject to taxation
that give rise to a tax effect should be disclosed if the amount was material in accordance
with IAS 1.29.
Illustrative note disclosure on the nature of expenses that are not deductible for income tax
purposes :
The nature of expenses that are not deductible for income tax purposes are as follows:
Group
2018 2017
$’000 $’000
Transaction costs related to acquisition of a
subsidiary XXX -
Exchange loss arising from revaluation of non-trade
balances XXX XXX
Private car expenses XXX XXX
Entertainment and transportation expenses incurred
for personal purposes XXX XXX
XXX XXX


11. Discontinued operation and disposal group classified as held for sale 
On 15 May 2018, the Company announced the decision of its board of directors to IFRS 5.41.a, b and d
dispose of one of its wholly-owned subsidiary, Rubber Hose Pte Ltd (RHP), which was
previously reported in the rubber hose segment. The decision is consistent with the
Group’s strategy to focus on its core electronics and property businesses and to divest its
rubber hose business, which has been underperforming for the last five years. As at 31
December 2018, the assets and liabilities related to RHP have been presented in the
balance sheet as “Assets of disposal group classified as held for sale” and “Liabilities
directly associated with disposal group classified as held for sale”, and its results are
presented separately on profit or loss as “Loss from discontinued operation, net of tax”.
The disposal of RHP was completed on 15 February 2019 (Note 44).
Balance sheet disclosures
The major classes of assets and liabilities of RHP classified as held for sale and the related
asset revaluation reserve as at 31 December are as follows:  IFRS 5.38 and 40
Group
2018
$’000
Assets:
Property, plant and equipment 1,466
Inventories 190
Trade and other receivables 364
Cash and short-term deposits 250
Assets of disposal group classified as held for sale 2,270
Liabilities:
Trade and other payables (1,043)
Deferred tax liabilities (28)
8.5% p.a. fixed rate SGD bank loan due 1 January 2019 (1,000)
Liabilities directly associated with disposal group classified as held for sale (2,071)
Net assets directly associated with disposal group classified as held for sale 199
Reserve:
Asset revaluation reserve 128


11. Discontinued operation and disposal group classified as held for sale  (continued)
Income statement disclosures
IFRS 5.33.b
The results of RHP for the years ended 31 December are as follows: 
Group
2018 2017
$’000 $’000
Revenue 13,152 14,598 IFRS 5.33.b.i

Expenses (12,983) (14,708) IFRS 5.33.b.i
Profit/(loss) from operations 169 (110)
Finance costs (70) (83)
Impairment loss on deferred development costs (Note 15) (200) –
IFRS 5.33.b.iii
Loss recognised on remeasurement to fair value less costs to sell (450) – and 41.c
Loss before tax from discontinued operation (551) (193) IFRS 5.33.b.i
Taxation:
IFRS 5.33.b.ii
- Related to loss from ordinary activities of the discontinued operation 4 5 IAS 12.81.h.ii
IFRS 5.33.b.iii
- Related to re-measurement to fair value less costs to sell 3 – IAS 12.81.h.i
Loss from discontinued operation, net of tax (544) (188)
Cash flow statement disclosures

The cash flows attributable to RHP are as follows:  IFRS 5.33.c
Group
2018 2017
$’000 $’000
Operating (1,025) 483

Investing 268 (189)
Financing (137) (114)
Net cash (outflows)/inflows (894) 180
Loss per share disclosures
Group
2018 2017
$’000 $’000
Loss per share from discontinued operation attributable to owners of

the Company (cents per share) 
Basic (2.35) (0.82) IAS 33.68
Diluted (2.30) (0.80) IAS 33.68
The basic and diluted loss per share from discontinued operation are calculated by dividing
the loss from discontinued operation, net of tax, attributable to owners of the Company by
the weighted average number of ordinary shares for basic earnings per share computation
and weighted average number of ordinary shares for diluted earnings per share
computation respectively. These loss and share data are presented in the tables in Note
12(a).


11. Discontinued operation and disposal group classified as held for sale  (continued)
Immediately before the classification of RHP as a discontinued operation, the recoverable
amount was estimated for certain items of property, plant and equipment and no
impairment loss was identified. Following the classification, an impairment loss of
$450,000 (2017: nil) was recognised to reduce the carrying amount of the assets in the
disposal group to the fair value less costs to sell. This amount was included as part of the
“Loss from discontinued operation, net of tax“.
Commentary:
 IFRS 5.5B clarifies that disclosure requirements in other IFRSs do not apply to non-current IFRS 5.5B
assets held for sale (or disposal groups) unless those IFRSs explicitly refer to those assets and
disposals groups. Disclosure requirements continue to apply for assets and liabilities that are not IFRS 5.5B.b
within the scope of the measurement requirements of IFRS 5, but within the disposal group.
Discontinued operation and disposal group classified as held for sale

IFRS 5.33.b and 39
 These analysis/disclosures are not required for disposal groups that are newly acquired
subsidiaries that meet the criteria to be classified as held for sale on acquisition.
IFRS 5.33.b
 Alternatively, these analysis/disclosures may be presented on the face of the financial
statements. If so presented for the purposes of the statement of comprehensive income, a
separate section identified as relating to discontinued operations is required.
IFRS 5.34
 An entity should re-present the disclosures in IFRS 5.33 for prior periods presented in the
statement of comprehensive income and cash flow statement so that the disclosures relate to all
operations that have been discontinued by the end of the reporting period for the latest period
presented.
Loss per share from discontinued operation

IAS 33.68
 In this illustration, loss per share from discontinued operations has been presented in the note.
Alternatively, this information may be presented on the face of the statement of comprehensive
income.
12. Earnings per share 
a) Continuing operations
Basic earnings per share from continuing operations are calculated by dividing profit IAS 33.10 and 12
from continuing operations, net of tax, attributable to owners of the Company by the
weighted average number of ordinary shares outstanding during the financial year.
Diluted earnings per share from continuing operations are calculated by dividing profit
from continuing operations, net of tax, attributable to owners of the Company (after IAS 33.31 and 33
adjusting for interest expense on convertible redeemable preference shares) by the
weighted average number of ordinary shares outstanding during the financial year plus
the weighted average number of ordinary shares that would be issued on the
conversion of all the dilutive potential ordinary shares into ordinary shares.
The following tables reflect the profit and share data used in the computation of basic
and diluted earnings per share for the years ended 31 December:


12. Earnings per share  (continued)
a) Continuing operations (continued)
Group
2018 2017
$’000 $’000
IAS 33.70.a
Profit for the year attributable to owners of the Company 4,776 7,105
Add back: Loss from discontinued operation, net of tax, attributable
to owners of the Company  544 188
Profit from continuing operations, net of tax, attributable to owners
of the Company used in the computation of basic earnings per share
from continuing operations 5,320 7,293
Interest expense on convertible redeemable preference shares  62 59

Profit from continuing operations, net of tax, attributable to owners
of the Company used in the computation of diluted earnings per
IAS 33.12
share 5,382 7,352
No. of No. of
shares shares
‘000 ‘000
Weighted average number of ordinary shares for basic earnings per
share computation * 23,150 23,055 IAS 33.70.b
Effects of dilution :
- Share options 18 15 IAS 33.70.b
- Convertible redeemable preference shares 505 505

Weighted average number of ordinary shares for diluted earnings per
share computation * 23,673 23,575 IAS 33.70.b
* The weighted average number of shares takes into account the weighted average
effect of changes in treasury shares transactions during the year.
IAS 33.70.c
325,000 (2017: 200,000) share options granted to employees under the existing
employee share option plans have not been included in the calculation of diluted
earnings per share because they are anti-dilutive.
Since the end of the financial year, senior executives have exercised the options to IAS 33.70.d
acquire 2,000 (2017: nil) ordinary shares. There have been no other transactions
involving ordinary shares or potential ordinary shares since the reporting date and
before the completion of these financial statements. 
b) Earnings per share computation

The basic and diluted earnings per share are calculated by dividing the p rofit for the year IAS 33.70.a and b
attributable to owners of the Company by the weighted average number of ordinary
shares for basic earnings per share computation and dividing the profit for the year
attributable to owners of the Company adjusted for interest expense on convertible
redeemable shares by the weighted average number of ordinary shares for diluted
earnings per share computation respectively. These profit and share data are
presented in the tables in Note 12(a) above.


12. Earnings per share  (continued)
Commentary:
Earnings per share
 If the number of ordinary or potential ordinary shares outstanding increases as a result of a IAS 33.64
capitalisation, bonus issue or share split, or decreases as a result of a reverse share split, the
calculation of basic and diluted earnings per share for all periods presented shall be adjusted
retrospectively. If these changes occur after the end of the reporting period but before the
financial statements are authorised for issue, the per share calculations for current and prior
period presented shall be based on the new number of shares and this fact should be
disclosed. In addition, basic and diluted earnings per share of all periods presented shall be
adjusted for the effects of errors and adjustments resulting from changes in accounting
policies accounted for retrospectively.
 In this illustration, it is assumed that the profit or loss from discontinued operation is not
attributable to non-controlling interests.
 The objective of diluted earnings per share is consistent with that of basic earnings per share IAS 33.32
which is to provide a measure of the interest of each ordinary share in the performance of an
entity while giving effect to all dilutive potential ordinary shares outstanding during the
period. As a result:
(a) profit or loss attributable to ordinary equity holders of the parent entity is increased by
the after-tax amount of dividends and interest recognised in the period in respect of the
dilutive potential ordinary shares and is adjusted for any other changes in income or
expense that would result from the conversion of the dilutive potential ordinary shares;
and
(b) the weighted average number of ordinary shares outstanding is increased by the
weighted average number of additional ordinary shares that would have been
outstanding assuming the conversion of all dilutive potential ordinary shares.
 Potential ordinary shares shall be treated as dilutive only when their conversion to ordinary IAS 33.41
shares would decrease earnings per share or increase loss per share from continuing
operations.
 An entity shall disclose a description of ordinary share transactions or potential ordinary IAS 33.70.d
share transactions, other than those resulted from share capitalisation, bonus issue or share
split, that occur after the end of the reporting period and that would have changed
significantly the number of ordinary shares or potential ordinary shares outstanding at the
end of the period if those transactions had occurred before the end of the reporting period.
Example of such transactions include: IAS 33.71
- An issue of shares for cash;

- An issue of shares when the proceeds are used to repay debt or preference shares
outstanding at the end of the reporting period;
- The redemption of ordinary shares outstanding;
- The conversion or exercise of potential ordinary shares outstanding at the end of the
reporting period into ordinary shares;
- An issue of options, warrants, or convertible instruments; and
- The achievement of conditions that would result in the issue of contingently issuable
shares.
Earnings per share amounts are not adjusted for such transactions occurring after the end of
the reporting period because such transactions do not affect the amount of capital used to
produce profit or loss for the period.


13. Property, plant and equipment  IAS 1.77 and 78.a
Furniture
Freehold Plant and and
Group land Buildings equipment fixtures Total
$’000 $’000 $’000 $’000 $’000
Cost or valuation: At valuation At cost IAS 16.73.a
At 1 January 2017 7,468 1,075 25,079 2,331 35,953 IAS 16.73.d
Additions 1,160 1,824 1,028 441 4,453 IAS 16.73.e.i
Disposals – – (2,054) – (2,054) IAS 16.73.e.ii
Revaluation surplus 2,128 740 – – 2,868 IAS 16.73.e.iv

Elimination of accumulated depreciation on
revaluation – (50) – – (50) IAS 16.35.b
Exchange differences (30) (15) (120) (20) (185) IAS 16.73.e.viii
At 31 December 2017 and 1 January 2018 10,726 3,574 23,933 2,752 40,985 IAS 16.73.d
Additions 4,000 1,194 2,008 1,252 8,454 IAS 16.73.e.i
Transfer from investment properties (Note 14) – 300 – – 300 IAS 16.73.e.ix
Disposals (3,068) (1,710) (3,328) – (8,106) IAS 16.73.e.ii
Acquisition of a subsidiary (Note 17) – – 1,111 158 1,269 IAS 16.73.e.iii

Attributable to discontinued operation
(Note 11) (1,010) (310) (377) (150) (1,847) IAS 16.73.e.ii
Revaluation surplus 1,206 300 – – 1,506 IAS 16.73.e.iv

Exchange differences 20 10 50 12 92 IAS 16.73.e.viii
At 31 December 2018 11,874 3,291 23,397 4,024 42,586 IAS 16.73.d
Accumulated depreciation and impairment loss:

At 1 January 2017 – – 6,461 1,337 7,798 IAS 16.73.d
Depreciation charge for the year – 50 2,558 230 2,838 IAS 16.73.e.vii
Disposals – – (615) – (615) IAS 16.73.e.ii

Exchange differences – – (40) (10) (50) IAS 16.73.e.viii
At 31 December 2017 and 1 January 2018 – – 8,364 1,557 9,921 IAS 16.73.d
Depreciation charge for the year – 115 2,628 300 3,043 IAS 16.73.e.vii
Impairment loss – – 500 – 500 IAS 16.73.e.v
Disposals – (10) (1,153) – (1,163) IAS 16.73.e.ii

Attributable to discontinued operation
(Note 11) – (38) (245) (98) (381) IAS 16.73.e.ii
Exchange differences – – 10 5 15 IAS 16.73.e.viii
At 31 December 2018 – – 10,104 1,764 11,868 IAS 16.73.d
Net carrying amount:

As 1 January 2017 7,468 1,075 18,618 994 28,155
At 31 December 2017 10,726 3,574 15,569 1,195 31,064
At 31 December 2018 11,874 3,291 13,293 2,260 30,718


13. Property, plant and equipment  (continued)
Furniture
Company and fixtures
$’000
Cost: IAS 16.73.a
At 1 January 2017 1,166 IAS 16.73.d
Additions 221 IAS 16.73.e.i
At 31 December 2017 and 1 January 2018 1,387 IAS 16.73.d
Additions 626 IAS 16.73.e.i
At 31 December 2018 2,013 IAS 16.73.d
Accumulated depreciation:
At 1 January 2017 669 IAS 16.73.d
Depreciation charge for the year 115 IAS 16.73.e.vii
At 31 December 2017 and 1 January 2018 784 IAS 16.73.d
Depreciation charge for the year 150 IAS 16.73.e.vii
At 31 December 2018 934 IAS 16.73.d

As 1 January 2017 497
At 31 December 2018 1,079
Assets under construction

The Group’s plant and equipment included $800,000 (31 December 2017: $750,000, 1 IAS 16.74.b
January 2017: $600,000) which relate to expenditure for a plant in the course of
construction.
Capitalisation of borrowing costs
The Group’s plant and equipment include borrowing costs arising from bank loans IAS 23.26.a
borrowed specifically for the purpose of the construction of a plant and equipment. During
the financial year, the borrowing costs capitalised as cost of plant and equipment IAS 23.26 b
amounted to $57,000 (31 December 2017: $60,000, 1 January 2017: $45,000). The
rate used to determine the amount of borrowing costs eligible for capitalisation was 4.5%
(31 December 2017: 5.0%, 1 January 2017: 4.8%), which is the effective interest rate of
the specific borrowing. 
Revaluation of freehold land and buildings
The Group engaged Chartered Surveyors Pte Ltd, an independent valuer to determine the IAS 16.77.a-b
fair value of the freehold land and buildings. The date of the revaluation was 31 December SGX 1207.11
2018 (31 December 2017: 31 December 2017, 1 January 2017: Nil). Details of valuation
techniques and inputs used are disclosed in Note 39.
IAS 16.77.e
If the freehold land and buildings were measured using the cost model, the carrying
amounts would be as follows:
Group
31 December 1 January
2018 2017 2017
$’000 $’000 $’000
Freehold land:
- Cost and net carrying amount 9,560 8,336 7,560
Buildings:
- Cost 2,730 3,048 3,548
- Accumulated depreciation and impairment (150) (200) (210)
- Net carrying amount 2,580 2,848 3,338



Assets held under finance leases
IAS 7.43
During the financial year, the Group acquired plant and equipment and furniture and
fixtures with an aggregate cost of $1,028,000 (2017: $130,000) by means of finance
leases. The cash outflow on acquisition of property, plant and equipment amounted to
$7,426,000 (2017: $4,323,000).
IAS 17.31.a
The carrying amount of plant and equipment and furniture and fixtures held under finance
leases at the end of the reporting period were $815,000 (31 December 2017: $65,000,
1 January 2017: $70,000) and $85,000 (31 December 2017: $30,000, 1 January 2017:
$28,000) respectively.
IAS 16.74.a
Leased assets are pledged as security for the related finance lease liabilities.
Assets pledged as security
IAS 16.74.a
In addition to assets held under finance leases, the Group’s freehold land and buildings
with a carrying amount of $7,822,000 (31 December 2017: $6,833,000, 1 January
2017: $6,105,000) are mortgaged to secure the Group’s bank loans (Note 30).
Impairment of assets
During the financial year, a subsidiary of the Group within the electronic components IAS 36.126.a,
130.a-c, e and g
segment, XYZ Vietnam Ltd carried out a review of the recoverable amount of its
production equipment because a particular line of specialised electronic component
products had been persistently making losses. An impairment loss of $500,000 (2017:
nil), representing the write-down of these equipment to the recoverable amount was
recognised in “Other expenses” (Note 8) line item of profit or loss for the financial year
ended 31 December 2018. The recoverable amount of the production equipment was
based on its value in use and the pre-tax discount rate used was 12.4% (2017: 11.2%).
Commentary:
 Entities are also encouraged to disclose the following information, which users of financial IAS 16.79
statements may find relevant to their needs:
- The carrying amount of temporarily idle property, plant and equipment;
- The gross carrying amount of any fully depreciated property, plant and equipment that is still
in use;
- The carrying amount of property, plant and equipment retired from active use and not
classified as held for sale in accordance with IFRS 5; and
- When the cost model is used, the fair value of property, plant and equipment when this is
materially different from the carrying amount.
 If the amount of borrowing costs eligible for capitalisation have been determined by applying a IAS 23.14 and
capitalisation rate to the expenditures on a qualifying asset because funds used for the 26.b
purpose of obtaining the qualifying asset are borrowed generally (rather than specifically), the
capitalisation rate should be the weighted average of the borrowing costs applicable to the
borrowings of the entity that are outstanding during the period, other than borrowings made
specifically for the purpose of obtaining a qualifying asset. The amount of borrowing costs
capitalised during a period should not exceed the amount of borrowing costs incurred during
that period.



Changes in estimates
 In this illustration, there was no change in the useful life of property, plant and equipment of IAS 8.39
IAS 16.76
the Group. Where applicable, an entity should disclose the nature and effect of a change in
accounting estimate that has an effect in the current or subsequent periods.
Illustrative note disclosure for change in estimated useful life of equipment:
During the financial year, the Group conducted an operational efficiency review on its
production lines. The Group revised the estimated useful lives of some automation
machines from five to eight years, after refurbishments that will enable these
automation machines to remain in production for an additional three years. The revision
in estimate has been applied on a prospective basis from 1 January 2018. The effect of
the above revision on depreciation charge in current and future periods are as follows:
2018 2019 2020 Later

$’000 $’000 $’000 $’000
Decrease in depreciation expense (xxx) (xxx) (xxx) (xxx)
14. Investment properties 
Group
2018 2017
$’000 $’000
Balance sheet: IAS 40.76
At 1 January 3,955 3,825

Additions (subsequent expenditure)  500 – IAS 40.76a
Net gains from fair value adjustments recognised in profit or loss 489 129 IAS 40.76.d
Transfer to property, plant and equipment (Note 13) (300) – IAS 40.76.f
Exchange differences 1 1 IAS 40.76.e
At 31 December 4,645 3,955
Income statement:
Rental income from investment properties:
- Minimum lease payments 294 246
- Contingent rent based on tenants’ turnover 21 45 IAS 17.56.b
315 291 IAS 40.75.f.i

Direct operating expenses (including repairs and maintenance)
arising from:
- Rental generating properties (60) (55) IAS 40.75.f.ii
- Non-rental generating properties (12) (10) IAS 40.75.f.iii
(72) (65)
The Group has no restrictions on the realisability of its investment properties and no IAS 40.75.g
contractual obligations to purchase, construct or develop investment property or for IAS 40.75.h
repairs, maintenance or enhancements.


14. Investment properties  (continued)

Valuation of investment properties
Investment properties are stated at fair value, which has been determined based on IAS 40.75.a
IAS 40.75.e
valuations  performed as at 31 December 2018 and 31 December 2017 and 1 January
2017. The valuations were performed by Chartered Surveyors Pte Ltd, an independent
valuer  with a recognised and relevant professional qualification and with recent
experience in the location and category of the properties being valued. Details of
valuation techniques and inputs used are disclosed in Note 39.
Properties pledged as security
Certain investment properties amounting to $2,145,000 (31 December 2017: IAS 40.75.g
$2,055,000, 1 January 2017: $2,055,000) are mortgaged to secure bank loans (Note
30).
Transfer to property, plant and equipment
On 30 December 2018, the Group transferred one condominium unit that was held as
investment property to owner-occupied property. On that date, the Group has
commenced using the condominium unit for employee accommodation purposes.
The investment properties held by the Group as at 31 December 2018 are as follows:  SGX 1207.11.b
Unexpired
Description and Location Existing Use Tenure lease term
8-storey shopping podium, 3 basements and twin 27-storey Shops Leasehold 983 years
office towers along South Park, Singapore
Five condominium units, River Valley, Singapore Residential Leasehold 92 years
18-storey office tower along Xujing Road, Qingpu District, Offices Leasehold 58 years
Shanghai
Commentary
Contractual obligations relating to investment properties
 Contractual obligations to purchase, construct or develop investment property or for repairs, IAS 40.75.h
maintenance or enhancements should be disclosed, if applicable.
Additions to investment properties
 Additions to investment properties resulting from: i) acquisitions of properties; ii) subsequent
IAS 40.76.a and
expenditure recognised in the carrying amount of an asset; and iii) acquisitions through
b
business combinations should be disclosed separately.
Valuation of investment properties
 When a valuation obtained for investment property is adjusted significantly for the purpose of IAS 40.77
the financial statements, for example to avoid double-counting of assets or liabilities that are
recognised as separate assets and liabilities, the entity should disclose a reconciliation between
the valuation obtained and the adjusted valuation included in the financial statements, showing
separately the aggregate amount of any recognised lease obligations that have been added
back, and any other significant adjustments.
 If there has been no such valuation performed by an independent valuer, that fact should be IAS 40.75.e
disclosed.
List of properties held for investment
 This disclosure is only required for entities listed on the SGX-ST, where the aggregate value for
SGX 1207.11
all properties for development, sale or for investment purposes held by the entity represent
more than 15% of the value of the consolidated net tangible assets, or contribute more than
15% of the consolidated pre-tax operating profit. This disclosure may be included in other parts
of the entity’s annual report instead.


15. Intangible assets 
Group
Deferred
Club Development
Goodwill Brands Membership Costs Total
IAS 1.77
$’000 $’000 $’000 $’000 $’000
Cost:
At 1 January 2017 245 240 100 984 1,569 IAS 38.118.c
Additions – internal development – – – 200 200 IAS 38.118.e.i
Exchange differences 5 5 – 12 22 IAS 38.118.e.vii
At 31 December 2017 and 1 January 2018 250 245 100 1,196 1,791 IAS 38.118.c
Additions:
- Internal development – – – 200 200 IAS 38.118.e.i
- Acquisition of a subsidiary (Note 17) 772 500 – – 1,272 IAS 38.118.e.i
Attributable to discontinued operation – – – (250) (250) IAS 38.118.e.ii
Exchange differences 15 7 – 14 36 IAS 38.118.e.vii
At 31 December 2018 1,037 752 100 1,160 3,049 IAS 38.118.c
Accumulated amortisation and impairment:

At 1 January 2017 – – 70 131 201 IAS 38.118.c
Amortisation – – 10 242 252 IAS 38.118.e.vi
Exchange differences – – – 5 5 IAS 38.118.e.vii
At 31 December 2017 and 1 January 2018 – – 80 378 458 IAS 38.118.c
Amortisation – – 10 210 220 IAS 38.118.e.vi

IAS 36.130.b
Impairment loss – – – 200 200 IAS 38.118.e.iv
Attributable to discontinued operation – – – (250) (250) IAS 38.118.e.ii
Exchange differences – – – 2 2 IAS 38.118.e.vii
At 31 December 2018 – – 90 540 630 IAS 38.118.c

At 1 January 2017 245 240 30 853 1,368
At 31 December 2017 250 245 20 818 1,333
At 31 December 2018 1,037 752 10 620 2,419 IAS 38.122.b
Brands and deferred development costs

IAS 38.122.b
Brands relate to the “Gao-Feng”, “You-Yue” and “MSAX-Q” (acquired in 2018) brand
names for the Group’s specialised electronic components that were acquired in business
combinations. As explained in Note 2.9(a), the useful life of these brands is estimated to
be indefinite.
Deferred development costs relate to energy efficiency improvement projects for
analogue electronic components and have an average remaining amortisation period of
four years (2017: five years).
All research costs and development costs not eligible for capitalisation have been
expensed and are recognised in ‘Research and development’ line item in profit or loss.


15. Intangible assets  (continued)

Amortisation expense
IAS 38.118.d
The amortisation of deferred development costs and club membership is included in the
“Research and development” and “Administrative expenses” line items in profit of loss
respectively.
Impairment testing of goodwill and brands
Goodwill acquired through business combinations and brands have been allocated to two IAS 36.80.b
cash-generating units (CGU), which are also the reportable operating segments, for
impairment testing as follows:
- Electronic components segment
- Property segment
The carrying amounts of goodwill and brands allocated to each CGU are as follows: 
Electronic components
segment Property segment Total
31 December 1 January 31 December 1 January 31 December 1 January

2018 2017 2017 2018 2017 2017 2018 2017 2017
$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
IAS 36.134.a
Goodwill 782 – 255 250 245 1,037 250 245
Brands 752 245 240 – – - 752 245 240 IAS 36.134.b
The recoverable amounts of the CGUs have been determined based on value in use  IAS 36.130.e. 134.c
calculations using cash flow projections from financial budgets approved by management and d.iii
covering a five-year period. The pre-tax discount rate applied to the cash flow projections
and the forecasted growth rates used to extrapolate cash flow projections beyond the
five-year period are as follows:
Electronic components segment Property segment

2017 2017 2017 2017
IAS 36.134.d.iv
Growth rates  5.1% 4.8% 4.7% 6.1% 5.5% 5.9%
Pre-tax discount rates 11.3% 11.1% 11.2% 12.3% 12.8% 12.6% IAS 36.134.d.v
Key assumptions used in the value in use calculations

IAS 36.134.d.i
The calculations of value in use for both the CGUs are most sensitive to the following
assumptions: 
Budgeted gross margins – Gross margins are based on average values achieved in the IAS 36.134.d.i and ii
three years preceding the start of the budget period. These are increased over the budget
period for anticipated efficiency improvements. An increase of 1.5% per annum was
applied for the electronic components segment and 2.2% for the property segment.
IAS 36.134.d.i,ii and
Growth rates – The forecasted growth rates are based on published industry research and iv
do not exceed the long-term average growth rate for the industries relevant to the CGUs.



Impairment testing of goodwill and brands (continued)
Key assumptions used in the value in use calculations (continued)
Pre-tax discount rates – Discount rates represent the current market assessment of the IAS 36.134.d.i and ii
risks specific to each CGU, regarding the time value of money and individual risks of the
underlying assets which have not been incorporated in the cash flow estimates. The
discount rate calculation is based on the specific circumstances of the Group and its
operating segments and derived from its weighted average cost of capital (WACC). The
WACC takes into account both debt and equity. The cost of equity is derived from the
expected return on investment by the Group’s investors. The cost of debt is based on the
interest bearing borrowings the Group is obliged to service. Segment–specific risk is
incorporated by applying individual beta factors. The beta factors are evaluated annually
based on publicly available market data.
Market share assumptions – These assumptions are important because, as well as using IAS 36.134.d.i and ii
industry data for growth rates (as noted above), management assesses how the CGU’s
position, relative to its competitors, might change over the budget period. Management
expects the Group’s share of the electronics and property markets to be stable over the
budget period.
Sensitivity to changes in assumptions 
With regards to the assessment of value in use for the property segment, management
believes that no reasonably possible changes in any of the above key assumptions would
cause the carrying value of the unit to materially exceed its recoverable amount.
For the electronic components segment, the estimated recoverable amount exceeds its IAS 36.134.f.i
carrying amount by approximately $200,000 (31 December 2017: $150,000, 1 January

2017: $180,000) and, consequently, any adverse change in a key assumption would
result in a further impairment loss. The implication of the key assumption for the
recoverable amount is discussed below:
Growth rates – Management recognises that the speed of technological change and the IAS 36.134.f.ii
possibility of new entrance can have a significant impact on growth rate assumptions. The
effect of new entrance is not expected to have an adverse impact on the forecasts, but IAS 36.134.f.iii
could yield a reasonably possible alternative to the estimated long-term growth rate of
5.1% (31 December 2017: 4.8%, 1 January 2017: 4.7%). A reduction of 0.8% (31
December 2017: 0.9%, 1 January 2017: 0.9%) in the long-term growth rate would result
in a further impairment.
Impairment loss recognised
During the financial year, an impairment loss was recognised to write-down the carrying IAS 36.126.a,
IAS 36.130.a-c
amount of deferred development costs attributable to the fire prevention equipment
segment that has been classified as discontinued operation (Note 11). The impairment
loss of $200,000 (2017: nil) has been recognised in profit or loss under the line item “loss
from discontinued operation, net of tax”.


Commentary:
Description of intangible assets
 The disclosure of a description, the carrying amount and remaining amortisation period are IAS 38.122.b
required for any individual intangible asset that is material to the entity’s financial
statements.
 If some or all of the carrying amount of goodwill or intangible assets with indefinite useful IAS 36.135
lives is allocated across multiple CGUs (groups of units), and the amount so allocated to each
unit (group of units) is not significant in comparison with the entity’s total carrying amount of
goodwill or intangible assets with indefinite useful lives, that fact shall be disclosed, together
with the aggregate carrying amount of goodwill or intangible assets with indefinite useful
lives allocated to those CGUs (group of units). In addition, if the recoverable amounts of any
of those CGUs (group of units) are based on the same key assumption(s) and the aggregate
carrying amount of goodwill or intangible assets with indefinite useful lives allocated to them
is significant in comparison with the entity’s total carrying amount of goodwill or intangible
assets with indefinite useful lives, an entity shall disclose that fact, together with:
(a) The aggregate carrying amount of goodwill allocated to those units (groups of units)
(b) The aggregate carrying amount of intangible assets with indefinite useful lives allocated
to those units (groups of units)
(c) A description of the key assumption(s)
(d) A description of management’s approach to determining the value(s) assigned to the
key assumption(s), whether those value(s) reflect past experience or, if appropriate,
are consistent with external sources of information, and, if not, how and why they differ
from past experience or external sources if information.
(e) If a reasonably possible change in the key assumption(s) would cause the aggregate of
the units’ (groups of units’) carrying amounts to exceed the aggregate of their
recoverable amounts:
(i) The amount by which the aggregate of the units’ (group of units’) recoverable
amounts exceeds the aggregate of their carrying amounts.
(ii) The value(s) assigned to the key assumption(s).
(iii) The amount by which the value(s) assigned to the key assumption(s) must change,
after incorporating any consequential effects of the change on the other variables
used to measure recoverable amount, in order for the aggregate of the unit’s
(groups of units’) recoverable amounts to be equal to the aggregate of their
carrying amounts.
IAS 36.136
 Provided specified criteria are met, if the most recent detailed calculation made in a
preceding period of the recoverable amount of a CGU (group of units) is used in the
impairment test for that unit (group of units) in the current period, the disclosures required
in the financial statements by paragraphs 134 and 135 relate to the carried forward
calculation of recoverable amount.
Sensitivity to changes in assumptions
 If a reasonably possible change in any key assumptions used by management would cause the IAS 36.134.f
carrying values of CGUs to materially exceed the recoverable amounts, an entity should
disclose
- the amount by which the CGU’s recoverable amount exceeds its carrying amount,
- the value assigned to the key assumption,
- the amount by which the value assigned to the key assumption must change, after
incorporating any consequential effects of that change on the other variables used to
measure recoverable amount, in order for the CGU’s recoverable amount to be equal to
its carrying amount.


Recoverable amount of CGU containing goodwill or intangible assets with indefinite lives
determined based on fair value less costs to sell (continued)
 In this illustration, the recoverable amounts of such CGUs were determined based on value IAS 36.134.e
in use calculations. If an entity uses fair value less costs of disposal to measure the
recoverable amount of CGU and the fair value less costs of disposal is not determined using
a quoted price, the entity should disclose the valuation technique(s) and other information
including: the key assumption used; a description of management’s approach to each key
assumption (whether those values reflect past experience or are consistent with external
information, and if not, how and why they differ); the level of fair value hierarchy and the
reason(s) for changing valuation techniques, if there is any change, are required to be
provided in the financial statements.
The recoverable amounts of CGU A, CGU B and CGU C are determined based on fair
value less costs of disposal of the CGUs. To calculate these values, an appropriate
multiple was applied to the maintainable operating earnings of the CGUs. The fair value
less costs of disposal of the CGUs are determined by applying an appropriate market
multiple to its earnings before interest, tax, depreciation and amortisation (EBITDA),
which management believes is sustainable in view of the current and anticipated
business conditions.
The fair value less costs of disposal of CGU A, CGU B and CGU C are estimated based
on current EBITDAs and market multiple of X.XX. The market multiples are calculated
based on the median of comparable companies’ indications, after adjustments for
differences in risks and growth. The control premium of XX% was calculated based on
the investment climate, industry dynamic and recent comparable transactions. The
discount rate of XX% has been derived based on studies of liquidity discounts and
adjusted for the size of the Company. The fair value derived is categorises under Level
3 of the fair value hierarchy.
If fair value less costs to sell is determined using discounted cash flow projections, the
following information shall also be disclosed:
- The period over which management has projected cash flows
- The growth rate used to extrapolate cash flow projections
- The discount rate(s) applied to the cash flow projections
IAS 36.134.d.iv
Forecasted growth rates used to extrapolate cash flow projections beyond the five-year period
 The entity is required to disclose the justification if the growth rate used to extrapolate
cash flows projections beyond the period covered by the most recent budgets/forecasts
exceeds the long-term average growth rate for the products, industries, or countries in
which the entity operates.
The growth rate used to extrapolate the cash flows of the electronics component
segment exceeds the average growth rate for the industry in which the electronics
segment operates by three quarters of a percentage point. Management of the
electronics component segment believes this growth rate is justified based on the
acquisition of XXX Limited that has resulted in the control of an industry patent,
preventing other entities from manufacturing a specialised product for a period of 10
years with the option for renewal after the 10 years period have expired.


16. Land use rights
Group
2018 2017
$’000 $’000
Cost:
At 1 January 6,500 6,360
Exchange differences 220 140
At 31 December 6,720 6,500
Accumulated amortisation:
Amortisation for the year 132 130
2018 2017 2017
$’000 $’000 $’000
Net carrying amount 5,811 5,733 5,730 IAS 17.35.a
Amount to be amortised:
- Not later than one year 137 132 130
- Later than one year but not later than five years 548 528 526
IAS 17.35.d
- Later than five years 5,126 5,073 5,074
The Group has land use rights over two plots of state-owned land in People’s Republic of
China (PRC) where the Group’s PRC manufacturing and storage facilities reside. The land
use rights are not transferable and have a remaining tenure of 43 years (31 December
2017: 44 years, 1 January 2017: 45 years).
17. Investment in subsidiaries 
Company
2018 2017 2017
$’000 $’000 $’000
IAS 27.10.a
Shares, at cost 11,132 11,042 11,036
Discount on loans to subsidiaries 540 540 540
Issuance of shares for acquisition of subsidiary 1,475 –
Impairment losses  (1,000) (1,000) (1,000)
12,147 10,582 10,576


17. Investment in subsidiaries  (continued)
a. Composition of the Group

The Group has the following significant investments in subsidiaries.
Principal IAS 27.16.b

place of Proportion (%) of IAS 24.12
Name business  Principal activities ownership interest 
31 1
December January
2018 2017 2017
Held by the Company:
XYZ Technologies Pte Singapore Manufacture of 100 100 100

Ltd i electronic
components
XYZ Investment Pte Singapore Investment holding 100 100 100

Ltd i
XYZ Land Pte Ltd i Singapore Investment holding 100 100 100
Good Fire Prevention Singapore Installation of fire 100 100 100

Pte Ltd i prevention
equipment and
provision of
installation
services
Rubber Hose Pte Ltd i Singapore Installation of rubber 100 100 100
hose
Held through XYZ Technologies Pte Ltd:
XYZ China Co. Ltd ii People’s Manufacture of 75 75 75

Republic electronic
of China components
XYZ Vietnam Ltd ii Vietnam Manufacture of 100 80 80

electronic
components
MSAX Sdn Bhd ii Malaysia Manufacture of 80 -* -*

electronic
components
Held through XYZ Land Pte Ltd:
XYZ Developers Pte Singapore Property 100 100 100

Ltd i development
XYZ Constructors Sdn Malaysia Property 100 100 100

Bhd ii development
Lion Land Pte Ltd i Singapore Property investment 100 100 100
i
Audited by Ernst & Young LLP, Singapore
SGX 717
ii
Audited by member firms of EY Global in the respective countries
* The Group holds 25% ownership interest in MSAX Sdn Bhd in 2017 and account for it as an associate (Note 19).


b. Interest in subsidiaries with material non-controlling interest (NCI) IFRS 12.12
The Group has the following subsidiaries that have NCI that are material to the Group. IFRS 12.B10.a
Name of Principal Proportion of Profit/(Loss) Accumulated Dividends

Subsidiary place of ownership allocated to NCI at the paid to
business  interest held NCI during end of NCI
by non- the reporting reporting
controlling period period
interest  $’000 $’000 $’000
31 December 2018:
XYZ China People’s 25% 120 1,220 100

Co. Ltd Republic of
China
MSAX Sdn Malaysia 20% 40 400 30
Bhd
31 December 2017:

Co. Ltd Republic of
China
1 January 2017:
Co. Ltd Republic of
China
Significant restrictions: 
The nature and extent of significant restrictions on the Group’s ability to use or IFRS 12.10.b.i
IFRS 12.13
access assets and settle liabilities of subsidiaries with material non-controlling
interests are:
Cash and cash equivalents of $49,000 (31 December 2017: $35,000, 1 January
2017: $40,000) held in People’s Republic of China are subject to local exchange
control regulations. These regulations places restriction on the amount of currency
being exported other than through dividends.


c. Summarised financial information about subsidiary with material NCI (continued)

Summarised financial information including goodwill on acquisition and consolidation IFRS 12.12.g
IFRS 12.B10.a
adjustments but before intercompany eliminations of subsidiaries with material non-
controlling interests are as follows:
Summarised balance sheets
XYZ China Co Ltd MSAX Sdn Bhd

31 December 1 January 31 December 1 January
2018 2017 2017 2018 2017 2017
$’000 $’000 $’000 $’000 $’000 $’000
Current
Assets 5,000 4,800 4,500 2,082 2,652 2,265
Liabilities (3,022) (3,000) (2,950) (582) (1,302) (1,012)
Net current assets 1,978 1,800 1,550 1,500 1,350 1,253
Non-current
Assets 522 830 670 886 720 648
Liabilities (198) (366) (225) (386) (120) (212)
Net non-current 324 464 445 500 600 436
assets
Net assets 2,302 2,264 1,995 2,000 1,950 1,689
Summarised statement of comprehensive income

2018 2017 2018 2017
$’000 $’000 $’000 $’000
Revenue 867 953 554 482
Profit before income tax 260 286 166 145
Income tax expense (44) (49) (28) (24)
Profit after tax – continuing operations 216 237 138 121
Other comprehensive income 10 (8) 62 (71)
Total comprehensive income 226 229 200 50
Other summarised information

2018 2017 2018 2017
$’000 $’000 $’000 $’000
Net cash flows from operations 186 235 130 42
Acquisition of significant Property,
Plant and Equipment (68) (778) (229) (553)


 An entity shall disclose information that enables users of its consolidated financial statements IFRS 12.10
(a) to understand:
i. the composition of the group; and
ii. the interest that non-controlling interests have in the group’s activities and cash flows;
and
(b) to evaluate:
i. the nature and extent of significant restrictions on its ability to access or use assets, and
settle liabilities, of the group
ii. the nature of, and changes in, the risks associated with its interests in consolidated
structured entities
iii. the consequences of changes in its ownership interest in a subsidiary that do not result in
a loss of control; and
iv. the consequences of losing control of a subsidiary during the reporting period.
 An entity shall decide, in the light of its circumstances, how much detail it provides to satisfy the IFRS 12.B2
information needs of users, how much emphasis it places on different aspects of the
requirements and how it aggregates the information. It is necessary to strike a balance between
burdening financial statements with excessive detail that may not assist users of financial
statements and obscuring information as a result of too much aggregation.
 In this illustration, it is assumed that there was no reversal of impairment loss on investment in IAS 36.130.a
subsidiaries. Where applicable, an entity should disclose the events and circumstances that led to
the reversal of such impairment loss.
 An entity shall disclose the country of incorporation if different from the principal place of IAS 112.12.b
business of the subsidiary. IAS 27.17.b.ii
 An entity shall disclose the proportion of voting rights if different from the proportion of IAS 112.12.d
ownership interests held. IAS 27.17.b.iii
 An entity shall disclose: IAS 112.13

(a) Significant restrictions (e.g. statutory, contractual and regulatory restrictions) on its ability
to access or use the assets and settle the liabilities of the group, such as:
i. those that restrict the ability of a parent or its subsidiaries to transfer cash or other
assets to (or from) other entities within the group.
ii. guarantee or other requirements that may restrict dividends and other capital
distributions being paid, or loans and advances being made or repaid, to (or from) other
entities within the group.
(b) The nature and extent to which protective rights of non-controlling interests can significantly
restrict the entity’s ability to access or use the assets and settle the liabilities of the group
(such as when a parent is obliged to settle liabilities of a subsidiary before settling its own
liabilities, or approval of non-controlling interests is required either to access the assets or to
settle the liabilities of a subsidiary).
(c) The carrying amounts in the consolidated financial statements of the assets and liabilities to
which those restrictions apply.
 The summarised financial information presented shall be the amounts before inter-company IFRS 12.B11
eliminations.


 Nature of the risks associated with an entity’s interests in consolidated structured entities
In this illustration, the Group does not consolidate any structured entity. If the Group provides
financial support to consolidated structured entities, please refer to the following disclosure
requirements:
An entity shall disclose the terms of any contractual arrangements that could require the parent IFRS 12.14
or its subsidiaries to provide financial support to a consolidated structured entity, including events
or circumstances that could expose the reporting entity to a loss (e.g. liquidity arrangements or
credit rating triggers associated with obligations to purchase assets of the structured entity or
provide financial support).
If during the reporting period a parent or any of its subsidiaries has, without having a contractual IFRS 12.15
obligation to do so, provided financial or other support to a consolidated structured entity (e.g.
purchasing assets of or instruments issued by the structured entity), the entity shall disclose:
(a) the type and amount of support provided, including situations in which the parents or its
subsidiaries assisted the structured entity in obtaining financial support; and
(b) the reasons for providing the support.
If during the reporting period a parent or any of its subsidiaries has, without having a contractual IFRS 12.16
obligation to do so, provided financial or other support to a previously unconsolidated structured
entity and that provision of support resulted in the entity controlling the structured entity, the
entity shall disclose an explanation of the relevant factors in reaching that decision.
An entity shall disclose any current intentions to provide financial or other support to a IFRS 12.17
consolidated structured entity, including intentions to assist the structured entity in obtaining
financial support.
 Investment entities
In this illustration, the Company does not meet the definition of an investment entity and
therefore does not apply the exception to consolidation under IFRS 10. When a parent determines
that it is an investment entity in accordance with IFRS 10, the following disclosures are required.
(a) Information about significant judgements and assumptions it has made in determining that it
IFRS 12.9A
is an investment entity. If the investment entity does not have one or more of the typical
characteristics of an investment entity, it shall disclose its reasons for concluding that it is
nevertheless an investment entity.
(b) When an entity becomes, or ceases to be, an investment entity, it shall disclose the change of IFRS 12.9B
investment entity status and the reasons for the change. In addition, an entity that becomes
an investment entity shall disclose the effect of the change of status on the financial
statements for the period presented including:
- The total fair value, as of the date of change of status, of the subsidiaries that cease to be
consolidated
- The total gain or loss, if any, calculated in accordance with paragraph B101 of IFRS 10
- The line item(s) in profit or loss in which the gain or loss is recognised (if not presented
separately)


 Investment entities (continued)
(c) For each unconsolidated subsidiary, an investment entity shall disclose: IFRS 12.19B
- the subsidiary’s name;

- the principal place of business (and country of incorporation if different from the principal
place of business) of the subsidiary; and
- the proportion of ownership interest held by the investment entity and, if different, the
proportion of voting rights held.
(d) If an investment entity is the parent of another investment entity, the parent shall also IFRS 12.19C
provide the disclosures in item (c) above for investments that are controlled by its investment
entity subsidiary. The disclosure may be provided by including, in the financial statements of
the parent, the financial statements of the subsidiary (subsidiaries) that contain the above
information.
(e) The nature and extent of any significant restrictions (e.g. resulting from borrowing IFRS 12.19D.a
arrangements, regulatory requirements or contractual arrangements) on the ability of an
unconsolidated subsidiary to transfer funds to the investment entity in the form of cash
dividends or to repay loans and advances made to the unconsolidated subsidiary by the
investment entity
(f) Any current commitments or intentions to provide financial or other support to an IFRS 12.19D.b
unconsolidated subsidiary, including commitments or intentions to assist the subsidiary in
obtaining financial support.
(g) If, during the reporting period, an investment entity or any of its subsidiaries has, or without IFRS 12.19E
having a contractual obligation to do so, provided financial or other support to an
unconsolidated subsidiary (e.g. purchasing assets of, or instruments issued by, the subsidiary
or assisting the subsidiary in obtaining financial support), the entity shall disclose:
- The type and amount of support provided to each unconsolidated subsidiary
- The reasons for providing the support
(h) The terms of any contractual arrangements that could require the entity or its IFRS 12.19F
unconsolidated, controlled, structured entity, including events or circumstances that could
expose the reporting entity to a loss (e.g. liquidity arrangements or credit triggers associated
with obligations to purchase assets of the structured entity or to provide financial support).
(i) If during the reporting period an investment entity or any of its unconsolidated subsidiaries IFRS 12.19G
has, without having a contractual obligation to do so, provided financial or other support to
an unconsolidated, structured entity that the investment entity did not control, and if that
provision of support resulted in the investment entity controlling the structured entity, the
investment entity shall disclose an explanation of the relevant factors in reaching the
decision to provide that support.


17. Investment in subsidiaries (continued)
d. Acquisition of subsidiary 

IFRS 3.B64.a-c
On 18 October 2018 (the “acquisition date”), the Group’s subsidiary company, XYZ
Technologies Pte Ltd (XYZ Technologies) acquired an additional 55% equity interest
in its 25% owned associate, MSAX Sdn Bhd (“MSAX”), a manufacturer of electronic
components in Malaysia. Upon the acquisition, MSAX became a subsidiary of the
Group.
The Group has acquired MSAX in order to strengthen its position as a leading IFRS 3.B64.d
manufacturer of electronic components in the ASEAN region and to enlarge the
range of products it can offer to its clients. The acqusition is also expected to reduce
costs through economies of scale.
The Group has elected to measure the non-contolling interest at the non-controlling
interest’s proportionate share of MSAX’s net identifiable assets. 
The fair value of the identifiable assets and liabilities of MSAX as at the acquisition
date were:
Fair value IFRS 3.B64.i

recognised on
acquisition
$’000
Property, plant and equipment 1,269
Brand 500
Trade and other receivables 889
Contract assets 200
Inventories 752
Cash and cash equivalents 417
4,027
Trade and other payables (838)

Contract liabilities (200)
Provision for maintenance warranties (50)
Deferred tax liability (48)
Income tax payable (100)
(1,236)
Total identifiable net assets at fair value 2,791

Non-controlling interest measured at the non-controlling interest’s
proportionate share of MSAX’s net idenfiable assets  (558) IFRS 3.B64.o
Goodwill arising from acquisition 772
3,005
Consideration transferred for the acquisition of MSAX

IFRS 3.B64.f.i
Cash paid 200
Equity instruments issued (1,305,310 ordinary shares of XYZ Holdings
(Singapore) Limited) 1,475 IFRS 3.B64.f.iv
Deferred cash settlement 200 IFRS 3.B64.f.iii
IFRS 3.B64.f.iii,
Contingent consideration recognised as at acquisition date 450
IFRS 3.B64.g.i
Total consideration transferred 2,325
IFRS 3.B64.f
Fair value of equity interest in MSAX held by the Group immediately
before the acquisition 680 IFRS 3.B64.p.i
3,005


d. Acquisition of subsidiary  (continued)
$’000
Effect of the acquisition of MSAX on cash flows
Total consideration for 55% equity interest acquired 2,325 IAS 7.40.a
IAS 7.43
Less: non-cash consideration (2,125)
Consideration settled in cash 200 IAS 7.40.b
Less: Cash and cash equivalents of subsidiay acquired (417) IAS 7.40.c
Net cash inflow on acquisition 217 IAS 7.42
Equity instruments issued as part of consideration transferred

IFRS 3.B64.f.iv
In connection with the acquisition of additional 55% equity interest in MSAX, XYZ
Holdings (Singapore) Limited issued 1,305,310 ordinary shares with a fair value of
$1.13 each. The fair value of these shares is the published price of the shares at the
acquisition date.
The attributable cost of the issuance of the shares as consideration of $50,000 have IFRS 3.B64.l and m
been recognised directly in equity as a deduction from share capital.
Contingent consideration arrangement
As part of the purchase agreement with the previous owner of MSAX, a contingent IFRS 3.B64.g.ii
consideration has been agreed. Additional cash payments shall be payable to the
previous owner of MSAX of:
a) $385,000, if the entity generates $1,000,000 profit before tax for a period of IFRS 3.B64.g.iii
12 months after the acquisition date, or

b) $705,000 if the entity generates $1,500,000 profit before tax for a period of
12 months after the acquisition date.
As at the acquisition date, the fair value of the contingent consideration was IFRS 3.B64.g.i
estimated at $450,000.
As of 31 December 2018, the key performance indicators of MSAX show clearly that
target (a) will be achieved and the achievement of target (b) is probable due to a
significant expansion of the business and synergies implemented. Accordingly, the
fair value of the contingent consideration has been adjusted to reflect this
development and such change has been recognised through profit or loss.
IFRS 3.58
The fair value of the contingent consideration as at 31 December 2018 has been IFRS 3.B67.b
increased by $235,000 to $685,000. The fair value of the contingent consideration
was calculated by applying the income approach using the probability-weighted
payout approach and at a discount rate of 8%. This fair value adjustment of
contingent consideration is recognised in the “Other expenses” line item in the
Group’s profit or loss for the year ended 31 December 2018.
Transaction costs
IFRS 3.B64.l and m
Transaction costs related to the acquisition of $300,000 have been recognised in the
“Administrative expenses” line item in the Group’s profit or loss for the year ended
31 December 2018.


d. Acquisition of subsidiary  (continued)
Gain on remeasuring previously held equity interest in MSAX to fair value at

acquisition date
The Group recognised a gain of $140,000 as a result of measuring at fair value its IFRS 3.B64.p.ii
25% equity interest in MSAX held before the business combination. The gain is
included in the “Other income” line item in the Group’s profit or loss for the year
ended 31 December 2018.
Trade and other receivables acquired
IFRS 3.B64.h
Trade and other receivables acquired comprise of trade receivables with fair values
of $889,000. Their gross amounts are $944,000, respectively. At the acquisition
date, $25,000 of the contractual cash flows pertaining to trade receivables are not
expected to be collected.
Goodwill arising from acquisition 
The goodwill of $772,000 comprises the value of strengthening the Group’s market
position in the ASEAN region, improved resilience to sector specific volatilities, and
cost reduction syngeries expected to arise from the acquisition. It also includes the
value of a customer list, which has not been recognised separately. Goodwill is
allocated entirely to the electronic components segment. Due to the contractual IFRS 3.B64.e
terms imposed on the acquisition, the customer list is not separable and therefore
does not meet the criteria for recognition as an intangible asset under IAS 38. None IFRS 3.B64.k
of the goodwill recognised is expected to be deductible for income tax purposes.
Impact of the acquisition on profit or loss
From the acquisition date, MSAX has contributed $8,000,000 of revenue and IFRS 3.B64.q.i
$301,000 to the Group’s profit for the year. If the business combination had taken IFRS 3.B64.q.ii
place at the beginning of the year, the revenue from continuing operations would
have been $144,720,000 and the Group’s profit from continuing operations, net of
tax would have been $5,801,000.
Provisional accounting of the acquisition of MSAX
A brand has been identified as an intangible asset arising from this acquisition. The IFRS 3.B67.a
Group has engaged an independent valuer to determine the fair value of the brand.
As at 31 December 2018, the fair value of the brand amounting to $500,000 has
been determined on a provisional basis as the final results of the independent
valuation have not been received by the date the financial statements was authorised
for issue. Goodwill arising from this acquisition, the carrying amount of the brand,
deferred tax liability, and amortisation of the brand will be adjusted accordingly on a
retrospective basis when the valuation of the brand is finalised.


e. Acquisition of ownership interest in subsidiary, without loss of control 

On 31 March 2018, the Group’s subsidiary company, XYZ Technologies, acquired an
additional 20% equity interest in XYZ Vietnam Ltd (XYZ Vietnam) from its non-
controlling interests for a cash consideration of $800,000. As a result of this
acquisition, XYZ Vietnam became a wholly-owned subsidiary of XYZ Technologies.
The carrying value of the net assets of XYZ Vietnam at 31 March 2018 was
$3,250,000 and the carrying value of the additional interest acquired was
$650,000. The difference of $150,000 between the consideration and the carrying
value of the additonal interest acquired has been recognised as “Premium paid on
acquisition of non-controlling interests“ within equity.
The following summarises the effect of the change in the Group’s ownership interest IFRS 12.18
in XYZ Vietnam on the equity attributable to owners of the Company:
$’000
Consideration paid for acqusition of non-controlling interests 800

Decrease in equity attributable to non-controlling interests (650)
Decrease in equity attributable to owners of the Company 150
Commentary:
Acquisition of subsidiary
 An entity shall also make disclosures of business combinations in accordance to IFRS 3.B64 IFRS 3.59.b and B66
even if they were effected after the end of the reporting date but before the financial
statements are authorised for issue, unless the initial accounting for the business
combination is incomplete at the time the financial statements are authorised for issue. In
that situation, the entity shall describe which disclosures cannot be made and the reasons
why they cannot be made.
 For individually immaterial business combinations occurring during the reporting period that IFRS 3.B65
are material collectively, an entity shall disclose in aggregate the information required by
IFRS 3.B64.e-q.
 If the acquisition results in a bargain purchase instead of goodwill recognised, the acquirer IFRS 3.B64.n
shall disclose the amount of the gain recognised and the line item in the consolidated
statement of comprehensive income in which the gain is recognised, and a description of the
reasons why the transaction resulted in a gain.


Acquisition of subsidiary
 An acquirer shall also disclose information that enables users of its financial statements to IFRS 3.61 and B67
evaluate the financial effects of adjustments recognised in the current reporting period
that relate to business combinations that occurred in the current period or previous
reporting periods.
Illustrative disclosure for adjustments to initial accounting for a business combination that IFRS 3.B67.a
was determined provisionally in the previous reporting period:
The purchase price allocation of the acquisition of Acquiree Group (Acquiree) in the
financial year ended 31 December 2018 were provisional as the Group had sought an
independent valuation for the land and buildings owned by Acquiree. The results of this
valuation had not been received at the date the 2018 financial statements were
authorised for issue. The valuation of the land and buildings was received in April 2018
and showed that the fair value at the date of acquisition was $XXX, an increase of
$XXX compared to the provisional value.
The 2017 comparative information has been restated to reflect this adjustment. The
value of the land and buildings increased by $XXX, there was an increase in the
deferred tax liability of $XXX and an increase in non-controlling interest of $XXX.
There was also a corresponding reduction in goodwill of $XXX, to give total goodwill
arising on the acquisition of $XXX. The depreciation charge on the buildings from the
acquisition date to 31 December 2017 increased by $XXX.
 In this illustration, no contingent liabilities are recognised in the business combination.

Illustrative note disclosure where an entity recognised contingent liabilities in a business
combination:
A contingent liability at a fair value of $XXX has been determined at the acquisition IFRS 3.B64.j
date resulting from a claim for payment by a supplier whose shipment has been
rejected and payment has been refused by the Group due to deviations from the IFRS 3.56
defined technical specifications of the goods. The claim is subject to legal arbitration
and is only expected to be finalised in late 2018. As at the reporting date, the
contingent liability has been reassessed and is determined to be $XXX, which is based
on the expected probable outcome (see Note X on Contingent Liability). The charge
has been recognised in profit or loss.


 In this illustration, the Group has elected to measure non-controlling interest arising from
acquisition of MSAX at the non-controlling interest’s proportionate share of MSAX’s
identifiable net assets. The following is an illustrative disclosure when an entity chooses to
measure non-controlling interest arising in a business combination at fair value:
Fair value of non-controlling interest in Acquiree
The fair value of the non-controlling interest in Acquiree, an unlisted company, was
IFRS 3.B64.o.ii
estimated by applying the income approach that is corroborated by market approach.
The fair value estimates are based on:
- A discount rate range of XX% to XX%;
- Terminal value, calculated based on the long term sustainable growth rate for the
industry ranging from XX% to XX%, which has been used to determine income for
the future years; and
- Adjustments because of the lack of control and marketability that market
participants would consider when estimating the fair value of the non-controlling
interest in Acquiree.
 Disposal of ownership in interest in subsidiary, without loss of control

In this illustration, the Group does not dispose any ownership in interest in subsidiary, IFRS 12.10.b.iii
without loss of control. The following provides illustrative disclosures if the Group disposes
its ownership of interest in subsidiary without loss of control. IFRS 12.18
On 13 June 2018, the Group disposed of a 5% equity interest in XYZ China Co. Ltd.
Following the disposal, the Group still controls XYZ China Co. Ltd., retaining 70% of the
ownership interests. The transaction has been accounted for as an equity transaction with
non-controlling interests, resulting in:
2018
$’000
Proceeds from sale of 5% ownership interest XXX
Net assets attributable to NCI (XXX)
Increase in equity attributable to parent XXX
Represented by:
Decrease in foreign currency translation reserve (XXX)
Decrease in asset revaluation reserve (XXX)
Other reserves XXX
Increase in equity attributable to parent entity XXX


 Loss of control in subsidiary

In this illustration, there is no loss of control in subsidiary. Illustrative disclosures when the
Group losses control in its subsidiary.
On 27 February 2018, the Group entered into a sale agreement to dispose of 85% of its interest in IFRS 12.10.b.iv
its wholly-owned subsidiary, Sun Pte Ltd., at its carrying value. The disposal consideration was fully
settled in cash. The disposal was completed on 30 April 2018, on which date control of Sun Pte
Ltd. passed to the acquirer.
IAS 7.40.d
The value of assets and liabilities of Sun Pte Ltd. recorded in the consolidated financial statements
as at 30 April 2018, and the effects of the disposal were:
2018
$’000
Property, plant and equipment XXX
Trade and other receivables XXX
Inventories XXX
Cash and short-term deposits XXX
XXX
Trade and other payables (XXX)
Income tax payable (XXX)
Carrying value of net assets (XXX)
Cash consideration XXX

Cash and cash equivalents of the subsidiary (XXX)
Net cash inflow on disposal of a subsidiary XXX
Gain on disposal:
2018
$’000
Cash received XXX

Net assets derecognised (XXX)
Fair value of retained interest XXX
Cumulative exchange differences in respect of the net
assets of the subsidiary reclassified from equity on
loss of control of subsidiary XXX
Gain on disposal XXX
The gain or loss on disposal attributable to measuring the retained interest amounted IFRS 12.19
to $XXX was included in other income in profit or loss.


18. Investment in joint venture 

IFRS 12.21
The Group has 50% (2017: 50%) interest in the ownership and voting rights  in a joint IAS 27.17.b
venture, XYZ-ABC JV Co. Ltd that is held through a subsidiary. This joint venture is
incorporated in People’s Republic of China  and is a strategic venture in the business or
property investment. The Group jointly controls the venture with other partner under the
contractual agreement and requires unanimous consent for all major decisions over the
relevant activities.
IFRS 12.21.b.ii
Summarised financial information in respect of XYZ-ABC JV Co. Ltd. based on its IFRS IFRS 12.B12
financial statements, and reconciliation with the carrying amount of the investment in the IFRS 12.B13
consolidated financial statements are as follows: 
Summarised balance sheet
Group
2018 2017 2017
$’000 $’000 $’000
Cash and cash equivalents 176 132 132
Trade receivables 542 792 755
Current assets 718 924 887
Non-current assets excluding goodwill 3,220 2,898 2,516
Goodwill 100 100 100
Non-current assets 3,320 2,998 2,616
Total assets 4,038 3,922 3,503
Current liabilities (200) (412) (295)
Non-current liabilities (excluding trade, other payables
and provisions) (490) (480) (480)
Other non-current liabilities (100) (100) (100)
Total non-current liabilities (590) (580) (580)
Total liabilities (790) (992) (875)
Net assets 3,248 2,930 2,628
Net assets excluding goodwill 3,148 2,830 2,528
Proportion of the Group’s ownership 50% 50% 50%
Group’s share of net assets 1,574 1,415 1,264
Goodwill on acquisition 100 100 100
Carrying amount of the investment 1,674 1,515 1,364


18. Investment in joint venture (continued) 

Group
2018 2017
$’000 $’000
Revenue 428 394
Operating expenses (106) (130)
Interest expense (10) (7)
Profit before tax 312 257
Income tax expense (10) (5)
Profit after tax 302 252
Other comprehensive income - -
Total comprehensive income 302 252
Dividends of $60,000 (2017: $50,000) were received from XYZ-ABC JV Co.Ltd. XYZ- IFRS 12.B12.a
ABC JV Co. Ltd is restricted by regulatory requirements by paying dividends greater than IFRS 12.22.a
50% of the annual profit. 
Commentary:
 In this illustration, the Group does not have investment in joint operation.
The following disclosures are required for investments in joint operations:
IFRS 12.21.a
(a) the name of the joint operation
(b) the nature of the entity’s relationship with the joint operations, (by, for example,
describing the nature of the activities of the joint operation and whether it is strategic to
the entity’s activities)
Other disclosures required for joint ventures are not applicable for joint operations.
 For interests in joint arrangements, an entity shall disclose information that enables users of IFRS 12.20
its financial statements to evaluate:
(a) the nature, extent and financial effects of its interests in joint arrangements, including
the nature and effects of its contractual relationship with the other investors with joint
control of joint arrangements; and
(b) the nature of, and changes in, the risks associated with its interests in joint ventures.
 If the joint venture is accounted for using the equity method, the entity shall disclose the fair IFRS 12.21.b.iii
value of its investment in the joint venture or associate, if there is a quoted market price for
the investment.
 In this illustration, the Group have only one investment in joint venture which is material.
IFRS 12.B16
The following disclosures are required, in aggregate for all individually immaterial joint
ventures:
(a) the carrying amount of its interests
(b) its share of the joint ventures’
i. profit or loss from continuing operations
ii. post-tax profit or loss from discontinued operations
iii. other comprehensive income
iv. total comprehensive income


18. Investment in joint venture (continued) 
 In this illustration, the Group does not have any unrecognised share of losses of its IFRS 12.22.c
investment in joint venture.
If the Group have stopped recognising its share of losses of its joint venture when applying
the equity method, it shall disclose the unrecognised share of losses of the joint venture,
both for the reporting period and cumulatively.
 An entity shall disclose the proportion of voting rights held for each joint arrangement if IFRS 12.21.a.iv
different from the proportion of ownership interests held.
 An entity shall disclose the principal place of business for each joint arrangement if different IFRS 12.21.a.iii
from the country of incorporation of the joint arrangement.
 An entity may present the summarised financial information on the basis of the joint IFRS 12.B15
venture’s financial statements if:
(a) the entity measures its interest in the joint venture at fair value; and
(b) the joint venture does not prepare IFRS financial statements and preparation on that
basis would be impracticable or cause undue cost.
In that case, the entity shall disclose the basis on which the summarised financial information
has been prepared.
In this illustration, the joint venture does not have depreciation and amortisation and interest IFRS 12.B13
income. For each material joint venture, an entity shall disclose the following information:
i. cash and cash equivalents
ii. current financial liabilities (excluding trade and other payables and provisions)
iii. non-financial liabilities (excluding trade and other payables and provisions)
iv. depreciation and amortisation
v. interest income
vi. interest expense
vii. income tax expense or income
 An entity shall also disclose the nature and extent of any significant restrictions (e.g. IFRS 12.22.a
resulting from borrowing arrangements, regulatory requirements or contractual
arrangements between investors with joint control of a joint venture) on the ability of joint
ventures to transfer funds to the entity in the form of cash dividends, or to repay loans and
advances.


19. Investment in associates 

IFRS 12.21.a.i
The Group’s material investments in associates are summarised below:
2018 31 December 1 January
2017 2017
$’000 $’000 $’000
QSpeed Pte Ltd 4,560 4,468 4,365
HKI Pte Ltd 5,576 5,403 5,324
Other associates 459 420 410 IFRS 12.B16
10,595 10,291 10,099
Fair value of investment in an associate for
which there is a published price quotation  10,600 10,400 10,300 IFRS 12.21.b.iii
IFRS 12.21
Country of Proportion (%) of ownership
IAS 27.17.b
Name incorporation  Principal activities interest 
2018 2017 2017
Held through subsidiaries:
QSpeed Pte Ltd i Singapore Manufacture of 35 35 35

electronic
components
MSAX Sdn Bhd ii Malaysia Manufacture of –* 25 25
electronic
components
Heart Land Ltd i Singapore Investment properties 45 45 45
i
HKI Pte Ltd Singapore Investment properties 47 47 47
Drill Pte Ltd Singapore Investment properties 22 22 22
i
Audited by Ernst & Young LLP, Singapore SGX 717
ii
Audited by member firm of EY Global in Malaysia
*The Group holds 80% of ownership interest in MSAX Sdn Bhd in 2017 and accounts for it as a subsidiary
(Note 17.a).
The activities of the associates are strategic to the Group activities. The Group has not IFRS 12.21.a.ii
IFRS 12.22.c
recognised losses relating to Heart Land Ltd where its share of losses exceeds the Group’s
interest in this associate. The Group’s cumulative share of unrecognised losses at the end
of the reporting period was $50,000 (31 December 2017: $35,000, 1 January 2017:
$28,000), of which $15,000 (2017: $5,000) was the share of the current year’s losses.
The Group has no obligation in respect of these losses. 
The Group has not recognised its share of the current year profit of $8,000 (2017: nil)
relating to Drill Pte Ltd as the Group’s cumulative share of unrecognised losses with
respect to that associate was $17,000 (31 December 2017: $25,000, 1 January 2017:
$20,000) at the end of the reporting period. 
Dividends of $40,000 (2017: $30,000) and $60,000 (2017: $50,000) were received IFRS 12.B12.a
from QSpeed Pte Ltd and HKI Pte Ltd respectively. QSpeed Pte Ltd. is restricted by IFRS 12.22.a
regulatory requirements by paying dividends greater than 60% of the annual profit. 


19. Investment in associates (continued) 

Aggregate information about the Group’s investments in associates that are not IFRS 12.21.c.ii
IFRS 12.B16
individually material are as follows: 
2018 2017
$’000 $’000
Profit or loss after tax from continuing operations 1,237 555
Other comprehensive income 223 174
Total comprehensive income 1,460 729
IFRS 12.21.b.i
The summarised financial information in respect of QSpeed Pte Ltd and HKI Pte Ltd, based on its IFRS IFRS 12.B12
IFRS 12.B14
financial statements and a reconciliation with the carrying amount of the investment in the
consolidated financial statements are as follows: 
Summarised balance sheet

QSpeed Pte Ltd HKI Pte Ltd
2017 2017 2017 2017
$’000 $’000 $’000 $’000 $’000 $’000
Current assets 8,040 8,327 8,173 6,987 6,474 7,184
Non-current assets
excluding goodwill 8,728 8,510 8,230 12,390 10,870 10,011
Goodwill 550 550 550 315 315 315
Total assets 17,318 17,387 16,953 19,692 17,659 17,510
Current liabilities (1,388) (1,211) (1,185) (2,433) (1,788) (1,836)

Non- current liabilities (4,494) (5,146) (4,946) (6,229) (5,188) (5,127)
Total liabilities (5,882) (6,357) (6,131) (8,662) (6,976) (6,963)
Net assets 11,436 11,030 10,822 11,030 10,683 10,547
Net assets excluding

goodwill 10,886 10,480 10,272 10,715 10,368 10,232
IFRS 12.B14.b
Proportion of the Group’s
ownership 35% 35% 35% 47% 47% 47%
Group’s share of net assets 3,810 3,668 3,595 5,036 4,873 4,809
Goodwill on acquisition 550 550 550 315 315 315
Other adjustments 200 250 220 225 215 200
Carrying amount of the
investment 4,560 4,468 4,365 5,576 5,403 5,324
QSpeed Pte Ltd HKI Pte Ltd

2018 2017 2018 2017
$’000 $’000 $’000 $’000
Revenue 20,269 18,467 25,202 23,850
Operating expenses (47) (22) 6 (22)

Interest expense 5 8 2 (3)
Profit before tax 406 208 347 136


19. Investment in associates (continued) 
Commentary:
Investment in associates
 For interests in associates, an entity shall disclose information that enables users of its IFRS 12.20
financial statements to evaluate:
(a) the nature, extent and financial effects of its interests in associates, including the
nature and effects of its contractual relationship with the other investors with
significant influence over associates; and
(b) the nature of, and changes in, the risks associated with its interests in associates.
 If the associate is accounted for using the equity method, the entity shall disclose the fair IFRS 12.21.b.iii
value of its investment in the associate, if there is a quoted market price for the
investment.
 An entity shall disclose the principal place of business for each associate if different from IFRS 12.21.a.iii
the country of incorporation of the associate.
 An entity shall disclose the proportion of voting rights held for each associate if different IFRS 12.21.a.iv
from the proportion of ownership interests held.
 If the Group have stopped recognising its share of losses of its associate when applying the IFRS 12.22.c
equity method, it shall disclose the unrecognised share of losses of the associate, both for
the reporting period and cumulatively.
 An entity shall also disclose the nature and extent of any significant restrictions (e.g. IFRS 12.22.a
resulting from borrowing arrangements, regulatory requirements or contractual
arrangements between investors with significant influence over an associate) on the ability
of associates to transfer funds to the entity in the form of cash dividends, or to repay loans
and advances.
 In this illustration, the Group does not have any immaterial associate that is classified as
discontinued operation.
The following disclosures are required, in aggregate for all individually immaterial IFRS 12.B16
associates:
(a) the carrying amount of its interests
(b) its share of the associates’
i. profit or loss from continuing operations
ii. post-tax profit or loss from discontinued operations
iii. other comprehensive income
iv. total comprehensive income
These disclosures above shall be disclosed separately for associates.
 An entity may present the summarised financial information on the basis of the associate’s IFRS 12.B15
financial statements if:
(a) the entity measures its interest in the associate at fair value
(b) the associate does not prepare IFRS financial statements and preparation on that basis
would be impracticable or cause undue cost.
In that case, the entity shall disclose the basis on which the summarised financial
information has been prepared.


20. Deferred tax

Deferred tax as at 31 December relates to the following:
Group Company IAS 12.81.g.i

and ii
Consolidated income
Consolidated balance sheet statement  Balance sheet

2018 2017 2017 2018 2017 2018 2017 2017
$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
Deferred tax liabilities:

Differences in
depreciation for tax
purposes (559) (592) (719) 142 251 (217) (218) (239)
Differences in
amortisation of
intangible assets (62) (111) (131) (44) (20) - - -
Impairment of intangible
assets (60) – – 60 - - - -
Indefinite life intangible
assets (42) (41) (41) 1 - - - -
Revaluations to fair
value:
- Freehold land and
buildings (1,159) (903) (431) – – – – –
- Available-for-sale
financial assets (150) (94) (68) – – – – –
Fair value adjustments
on acquisition of
subsidiary (48) – – – – – – –
Convertible redeemable
preference shares (9) (13) - (4) (3) (9) (13) -
Undistributed earnings
of associates (176) (145) (125) 31 20 – – –
Other items (8) (5) (2) 3 3 – – –
(2,273) (1,904) (1,517) (226) (231) (239)
Deferred tax assets:

Provisions 419 427 422 8 (5) – – –
Unutilised tax losses 23 19 18 (4) (1) 9 8 7
Other items 28 17 15 (8) 7 12 18 13
470 463 455 21 26 20

Deferred tax expense 185 252


20. Deferred tax (continued)

Unrecognised tax losses IAS 12.81.e
At the end of the reporting period, the Group has tax losses of approximately $867,000
(31 December 2017: $682,000, 1 January 2017: $623,000) that are available for offset
against future taxable profits of the companies in which the losses arose, for which no
deferred tax asset is recognised due to uncertainty of its recoverability. The use of these
tax losses is subject to the agreement of the tax authorities and compliance with certain
provisions of the tax legislation of the respective countries in which the companies
operate. The tax losses have no expiry date except for an amount of $101,000
(December 2017: $101,000, 1 January 2017: $101,000) which will expire in 2018.
Unrecognised temporary differences relating to investments in subsidiaries and joint IAS 12.81.f
venture
At the end of the reporting period, no deferred tax liability (31 December 2017: nil,
1 January 2017: nil) has been recognised for taxes that would be payable on the
undistributed earnings of certain of the Group’s subsidiaries and joint venture as:
- The Group has determined that undistributed earnings of its subsidiaries will not be
distributed in the foreseeable future; and
- The joint venture of the Group cannot distribute its earnings until it obtains the
consent of both the joint venturers. At the end of the reporting period, the Group
does not foresee giving such consent.
Such temporary differences for which no deferred tax liability has been recognised IAS 12.87
aggregate to $450,000 (31 December 2017: $340,000, 1 January 2017: $320,000).
The deferred tax liability is estimated to be $81,000 (31 December 2017: $68,000,
1 January 2017: $60,000).
Tax consequences of proposed dividends
IAS 12.81.i
There are no income tax consequences (2017: nil) attached to the dividends to the
shareholders proposed by the Company but not recognised as a liability in the financial
statements (Note 43).
Commentary:
Deferred tax income or expense recognised in profit or loss

IAS 12.81.g.ii
 This disclosure is required in situations where the amount of the deferred tax income or
expense recognised in profit or loss relating to each type of deferred tax assets/liabilities is
not apparent from the changes in the amounts recognised in the balance sheet.


21. Trade and other receivables 

IAS 1.77-78.b
Group Company IFRS 7.7 and 31

2018 2017 2017 2018 2017 2017
$’000 $’000 $’000 $’000 $’000 $’000
Trade and other receivables

(current):
Trade receivables 24,176 24,341 21,447 – – –
Amounts due from related
companies 361 320 290 288 300 300
Staff loans 155 150 145 50 50 13
Refundable deposits 102 119 126 – – – IAS 24.18.b
24,794 24,930 22,008 338 350 313

Other receivables (non-
current):
Amounts due from subsidiaries – – - 3,409 2,061 2,006

SGD loans to subsidiaries – – - 10,563 12,537 11,904
IAS 24.18.b
SGD loans to associates 1,230 1,252 1,252 1,230 1,252 1,252
IAS 24.18.b
SGD loan to a fellow subsidiary 1,500 1,515 1,515 1,500 1,515 1,515
IAS 24.18.b
Staff loans 63 48 30 51 36 28
IAS 24.18.b
2,793 2,815 2,802 16,753 17,401 16,705
Total trade and other
receivables (current and non-
current) 27,587 27,745 24,810 17,091 17,751 17,018
Add: Cash and short-term
deposits 6,117 4,858 3,668 4,621 4,145 3,790
Add: Debt instruments at
amortised cost 660 650 600 - - -
Less: Sales tax receivables (15) (13) (14) (3) (2) (2)
Total financial assets carried at
amortised cost  34,349 33,240 29,064 21,709 21,894 20,806
Trade receivables
Trade receivables are non-interest bearing and are generally on 30 to 90 days’ terms.
They are recognised at their original invoice amounts which represent their fair values on
IFRS 7.7 and 31
initial recognition.
At the end of the reporting period, trade receivables arising from export sales amounting
to $1,560,000 (31 December 2017: $1,750,000, 1 January 2017: $1,620,000) are
IFRS 7.36.b
arranged to be settled via letters of credit issued by reputable banks in countries where
the customers are based. Trade receivables from first-time customers that are insured by
trade credit insurance underwritten by a reputable insurer in Singapore amount to
$520,000 (31 December 2017: nil, 1 January 2017: nil) at the end of the reporting
period.


21. Trade and other receivables  (continued)

Trade receivables denominated in foreign currencies at 31 December are as follows: IFRS 7.34.a
Group Company

2017 2017 2017 2017
$’000 $’000 $’000
$’000 $’000 $’000
United States Dollar 4,128 4,525 4,236 – – -
Renminbi 1,567 2,015 2,325 – – -
Related party balances and staff loans

- Amounts due from related companies are non-trade related, unsecured, non-interest IFRS 7.7,31 and
36.b
bearing, repayable upon demand and are to be settled in cash. IAS 24.18.b
- Amounts due from subsidiaries and loans to subsidiaries are unsecured, bear interest
of SIBOR + 1% p.a. (2017: SIBOR + 1% p.a.) and are to be settled in cash. The former
are due on 30 June 2021 while the latter are due on 30 June 2022.
- Loans to associates bear interest at SIBOR + 2% p.a. (2017: SIBOR + 2% p.a.), have an
average maturity of 1.5 years (2017: 2.5 years), secured by corporate guarantees
issued by their respective holding companies and are to be settled in cash.
- Loan to a fellow subsidiary is unsecured, bears interest at SIBOR + 2% p.a. (2017:
SIBOR + 2% p.a.), repayable on 30 September 2020 and is to be settled in cash.
- Staff loans are unsecured and non-interest bearing. Non-current amounts have an
average maturity of 1.5 years (2017: 1.5 years). The loans are recognised initially at
fair value. The difference between the fair value and the absolute loan amount
represents payment for services to be rendered during the period of the loan and is
recorded as part of prepaid operating expenses.
Receivables that are past due but not impaired
IFRS 7.37.a
The Group has trade receivables amounting to $5,760,000 as at 31 December 2017 and IFRS 7.36.b
$6,852,000 as at 1 January 2017 that are past due at the end of the reporting period but IFRS 7.IG28
not impaired. These receivables are unsecured and the analysis of their aging at the end
of the reporting period is as follows:
Group
2017 2017
$’000 $’000
Trade receivables past due but not impaired: 

Lesser than 30 days 4,105 5,234
30 - 60 days 568 832
61- 90 days 822 524
91-120 days 245 262
More than 120 days 20 –
5,760 6,852


Receivables that are impaired

The Group’s trade receivables that are impaired at the end of the reporting period and the
movement of the allowance accounts  used to record the impairment are as follows:
Group
Collectively impaired Individually impaired IFRS 7 IG29.a
2017 2017 2017 2017
$’000 $’000 $’000 $’000 IFRS 7.37.b
Trade receivables – nominal amounts 1,350 1,230 80 100 IFRS 7.IG29.b
Less: Allowance for impairment (410) (300) (50) (60)
940 930 30 40
Movement in allowance accounts: IFRS 7.16
At 1 January 510 60
Charge for the year 95 20
Written off (205) (30)
Exchange differences 10 –
Trade receivables that are individually determined to be impaired at the end of the IFRS 7.37.b
IFRS 7.36.b
reporting period relate to debtors that are in significant financial difficulties and have
defaulted on payments. These receivables are not secured by any collateral or credit
enhancements.
As at 31 December 2017, the Group and the Company have provided an allowance of IFRS 7.37.b
IFRS 7.36.b
$100,000 (1 January 2017: $100,000) for impairment of the unsecured loan to a fellow IAS 24.18.c
subsidiary company with a nominal amount of $1,600,000 (2017: $1,600,000). This
related party has been suffering significant financial losses for the current and past two
financial years.
Expected credit losses
The movement in allowance for expected credit losses of trade receivables and contract IFRS 7.35H
assets computed based on lifetime ECL are as follows:
Group
Trade Contract
receivables assets
2018 2018
Movement in allowance accounts: $’000 $’000
At 1 January 753 15
Charge for the year 90 10
IFRS 35I.c
Written off (135) -
Exchange differences (15) 5


Receivables subject to offsetting arrangements 

The Group regularly purchases electronic raw materials from and sell electronic products
to MNO Pte Ltd. Both parties have an arrangement to settle the net amount due to or
from each other on a 30-days term basis.
The Group’s trade receivables and trade payables that are off-set are as follows:
31 December 2018
$‘000
IFRS 7.13C.a
Gross carrying Gross amounts Net amounts in the
IFRS 7.13C.b
amounts before offset in the balance sheet
IFRS 7.13C.c
Description offsetting balance sheet
Trade receivables 6,100 (2,540) 3,560
Trade payables 2,540 (2,540) -
31 December 2017
Description $‘000
1 January 2017
Description $‘000
Receivables subject to an enforceable master netting arrangement that are not otherwise
set-off 
The Group regularly purchases electronic raw materials from and sell electronic products IFRS 7.13E
to PQR Pte Ltd. Both parties do not have an arrangement to settle the amount due to or
from each other on a net basis but have the right to set off in the case of default and
insolvency or bankruptcy.
The Group’s trade receivables and trade payables subject to an enforceable master
netting arrangement that are not otherwise set-off are as follows:
31 December 2018 IFRS 7.13C.d.i

$‘000 IFRS 7.13C.e
Gross carrying Related amounts Net amount

amounts not set off in the
Description balance sheet
31 December 2017
Description $‘000
1 January 2017
Description $‘000
Trade receivables 2,180 (1,242) 938


Commentary:
Collateral and other credit enhancements
 When an entity holds collateral (of financial or non-financial assets) and is permitted to sell
IFRS 7.15
or repledge the collateral in the absence of default by the owner of the collateral, it shall
disclose: (a) the fair value of the collateral held; (b) the fair value of any such collateral sold
or repledged, and whether the entity has an obligation to return it; and (c) the terms and
conditions associated with its use of the collateral.
 When an entity obtains financial or non-financial assets during the period by taking
IFRS 7.38
possession of collateral it holds as security or calling on other credit enhancements (e.g.,
guarantees), and such assets meet the recognition criteria under IFRS, an entity shall
disclose for such assets held at the reporting date:
(a) the nature and carrying amount of the assets; and
(b) when the assets are not readily convertible into cash, its policies for disposing of such
assets or for using them in its operations.
The above disclosure required for financial assets obtained by taking possession of collateral
or other credit enhancements are only applicable to assets still held at the reporting date.
 An entity shall disclose a description of collateral held as security and of other credit
IFRS 7.36.b
enhancements, and their financial effect (e.g. a quantification of the extent to which
collateral or other credit enhancements mitigate credit risk) in respect of the amount that
best represents the maximum exposure to credit risk.
Categories of financial assets and financial liabilities
 Please refer to commentary no. 1 of Note 22 Investment securities.
Ageing analysis of financial assets that are past due but not impaired
 IFRS 7 requires the disclosure of an analysis by class of the age of financial assets that are IFRS 7.37.a and IG
past due but not impaired. Any entity uses its judgement to determine the appropriate time 28
bands to be disclosed.
Allowance account for credit losses
 IFRS 7 requires disclosure requirements where financial assets are impaired by credit losses IFRS 7.16
and the entity records the impairment in a separate account (e.g., an allowance account
used to record individual impairments or a similar account used to record a collective
impairment of assets) rather than directly reducing the carrying amount of the asset. In
such circumstances, the entity shall disclose a reconciliation of changes in that account (the
“reconciliation”) during the period for each class of financial assets.
In this illustration, the entity has presented the reconciliation of changes in the two
allowance accounts that it has used to record impairment of trade receivables, i.e., trade
receivables that are collectively impaired and those that are individually impaired.


IFRS 7 Disclosures - Offsetting financial assets and financial liabilities
 IFRS 7 requires an entity to disclose information to enable users of its financial statements IFRS 7.13B
to evaluate the effect or potential effect of netting arrangements on the entity’s financial
position which includes the effect or potential effect of rights of set-off associated with the
entity’s recognised financial assets and recognised financial liabilities that are within the
scope of paragraph 13A of IFRS 7.
These disclosures are required for all recognised financial instruments that are set off in IFRS 7.13A
accordance with paragraph 42 of IAS 32 and also apply to recognised financial instruments
that are subject to an enforceable master netting arrangement or similar agreement
irrespective of whether they are set off in accordance with paragraph 42 of IAS 32.
To meet the objective above, an entity shall disclose, at the end of the reporting period, the IFRS 7.13C
following quantitative information separately for recognised financial assets and recognised
financial liabilities that are within the scope of paragraph 13A of IFRS 7:
(a) the gross amounts of those recognised financial assets and recognised financial
liabilities;
(b) the amounts that are set off in accordance with the criteria in IAS 32.42 when
determining the net amounts presented in the balance sheet;
(c) the net amounts presented in the balance sheet;
(d) the amounts subject to an enforceable master netting arrangement or similar
arrangement that are not otherwise include in (b), including 
i. amounts related to recognised financial instruments that do not meet some or all of
the offsetting criteria of IAS 32.42; and
ii. amounts related to financial collateral (including cash collateral); and
(e) the net amounts after deducting the amounts in (d) from the amounts in (c) above.
The information above shall be presented in a tabular format, separately for financial assets
and financial liabilities, unless another format is more appropriate.
 The total amount disclosed for an instrument in accordance with (d) above shall be limited to IFRS 7.13D
the net amounts presented in the balance sheet for that instrument.


22. Investment securities  IFRS 7.7 and 31
a) Financial instruments as at 31 December 2018
Group
2018
$’000
At fair value through profit or loss 
- Equity securities (quoted) 3,258 IFRS 7.8.a.i
At fair value through other comprehensive income 
- Other debt securities (unquoted) 1,563 IFRS 7.8.h.i
- Equity securities (unquoted) 839 IFRS 7.8.h.ii
2,402
At amortised cost 
IFRS 7.8.f
- 3% p.a. SGD government bonds due 31 March 2020 (quoted) 660
3,062
Net carrying amount

Current 1,712
Non-current 4,608
Investments pledged as security

The Group’s investment in government bonds amounting to $660,000 has been pledged IFRS 7.14
as security for a bank loan (Note 30). Under the terms and conditions of the loan, the
Group is prohibited from disposing of this investment or subjecting it to further charges
without furnishing a replacement security of similar value.
Investments in equity instruments designated at fair value through other comprehensive
income
The fair value of each of the investments in equity instruments designated at fair value IFRS 7.11A
through other comprehensive income at the end of the reporting period is as follows:
Group
2018
$’000
At fair value through other comprehensive income
- Equity securities (unquoted)
IFRS 7.11A.a
B9SG Pte Ltd 139 IFRS 7.11A.c
FRU Co. Ltd 700
839
The Group has elected to measure these equity securities at FVOCI due to the Group’s IFRS 7.11A.b
intention to hold these equity instruments for long-term appreciation.
During the year, the Group disposed of its investments in equity instruments of IFRS 7.11B.a
BetterWork Pte Ltd due to favourable market condition. The fair value at the date of IFRS 7.11B.b
IFRS 7.11B.c
derecognition amounted to $119,000. The cumulative gain arising from the disposal IFRS 7.11A.e
amounted to $29,000 and were transferred from fair value adjustment reserve to
retained earnings.
The Group recognised a dividend of $20,000 from FRU Co. Ltd during the year and a IFRS 7.11A.d
dividend of $5,000 from Lotus Ltd prior to the disposal during the year.


22. Investment securities (continued) 
Commentary:
Nature and extent of risks arising from financial instruments
 Information such as interest rates and maturity dates of debt securities, and countries IFRS 7.7
where the equity securities are listed should be disclosed if material and enables the users
of the financial statements to evaluate the nature and extent of the risks arising from
financial instruments to which the entity is exposed to at the reporting date. In this
illustration, the countries where the equity securities are listed are disclosed in Note 40
Market price risk.

 IFRS 7 required disclosure of the carrying amounts of financial instruments under each of IFRS 7.8
categories in IFRS 9, either on the face of the balance sheet or in the notes. The categories
of financial instruments include
(a) financial assets measured at fair value through profit or loss, showing separately
i. those designated as such upon initial recognition and
ii. mandatorily measured at fair value through profit or loss in accordance with IFRS 9
(b) financial liabilities at fair value through profit or loss, held-to-maturity investments,
loans and receivables, available-for-sale financial assets, and financial liabilities
measured at amortised cost.
(c) financial assets measured at amortised cost
(d) financial liabilities measured at amortised cost
(e) financial assets measured at fair value through other comprehensive income, showing
separately
i. financial assets that are measured at fair value through other comprehensive
income in accordance with paragraph 4.1.2A of IFRS 9 and
ii. investments in equity instruments designated as such upon initial recognition in IFRS 7.11A
accordance with paragraph 5.7.5 of IFRS 9.
In this illustration, the disclosure requirement is met in the respective notes to the financial
statements (refer to this note, Note 21, 26 and 31). Alternatively, the disclosure of the
carrying amounts of financial instruments under each of the classifications in IFRS 9 may
be presented in a separate centralised note.
Financial assets at fair value through profit or loss
 In this illustration, the Group does not have debt instrument designated as measured at fair IFRS 7.9
value through profit or loss a financial asset that would otherwise be measured at fair value
through other comprehensive income or amortised cost. If the Group has debt instrument
designated as such, it shall disclose:
(a) The maximum exposure to credit risk of the financial asset at the end of the reporting
period.
(b) The amount by which any related credit derivatives or similar instruments mitigate that
maximum exposure to credit risk
(c) The amount of change, during the period and cumulatively, in the fair value of the
financial asset that is attributable to changes in the credit risk of the financial asset
determined either
i. As the amount of change in its fair value that is not attributable to changes in
market conditions that give risk to market risk; or
ii. Using an alternative method that the entity believes more faithfully represents the
amount of change in its fair value that is attributable to changes in the credit risk of
the asset.
Changes in market conditions that give rise to market risk include changes in an
observed (benchmark) interest rate, commodity price, foreign exchange rate or index
of prices or rates
(d) The amount of the change in fair value of any related credit derivatives or similar
instruments that has occurred during the period and cumulatively since the financial
asset was designated.


22. Investment securities (continued)  IFRS 7.7 and 31
b) Financial instruments as at 31 December 2017 and 1 January 2017
Group
2017 2017
$’000 $’000
Current:
Held for trading investments  IFRS 7.8.a.ii
- Equity securities (quoted) 1,260 1,150
Non-current:
Available-for-sale financial assets  IFRS 7.8.d
- Other debt securities (unquoted) 980 1,026

- Equity securities (quoted) 848 1,314
- Equity securities (unquoted) 28 40
- Equity securities (unquoted), at cost  600 600
2,456 2,980
Held-to-maturity investment 
- 3% p.a. SGD government bonds due 31 March 2020 (quoted) 650 650 IFRS 7.8.b
3,106 3,630
Investments pledged as security

The Group’s investment in government bonds amounting to $650,000 has been pledged IFRS 7.14
as security for a bank loan (Note 30) in 2017. Under the terms and conditions of the loan,
the Group is prohibited from disposing of this investment or subjecting it to further
charges without furnishing a replacement security of similar value.
Impairment losses
During the financial year ended 31 December 2017, the Group recognised the following IFRS 7.20.e and 37.b
impairment losses:
 Impairment loss $150,000 and $35,000 for quoted and unquoted equity securities
respectively as there were “significant” or “prolonged” decline in the fair value of these
investments below their costs. The Group treats “significant” generally as X% and
“prolonged” as greater than X months. 
 Impairment loss $25,000 for unquoted other debt securities after taking into
considerations the probability of default or significant delay in repayments by the
debtors.


22. Investment securities (continued) 
Commentary:
 IFRS 7 required disclosure of the carrying amounts of financial instruments under each of IFRS 7.8
the classification in IAS 39, either on the face of the balance sheet or in the notes. The
categories of financial instruments include financial assets and financial liabilities that are
classified as held for trading, those that are designated upon initial recognition as financial
assets or financial liabilities at fair value through profit or loss, held-to-maturity
investments, loans and receivables, available-for-sale financial assets, and financial
liabilities measured at amortised cost. In this illustration, the disclosure requirement is met
in the respective notes to the financial statements (refer to this note, Note 21, 26 and 31).
Alternatively, the disclosure of the carrying amounts of financial instruments under each of
the classifications in IAS 39 may be presented in a separate centralised note.

 Information such as the interest rates and maturity dates of the debt securities, and IFRS 7.31
countries where the equity securities are listed should be disclosed if material and enables
the users of the financial statements to evaluate the nature and extent of the risks arising
from financial instruments to which the entity is exposed to at the reporting date. In this
illustration, the countries where the equity securities are listed are disclosed in Note 40 (e)
Market price risk.
Determination of “significant” or “prolonged” decline in fair value of financial instruments
 Please refer to commentary no. 3 of Note 2.16 (c) Impairment of available-for-sale financial
assets.

Reclassification of financial assets at cost or amortised cost to fair value
IFRS 7.12
 If an entity has reclassified any financial asset measured at cost or amortised cost to fair
value or reclassified any financial asset at fair value, rather than at cost or amortised cost,
IFRS 7 requires disclosure of the amount and reason for the reclassification.
Illustrative disclosure for reclassification of financial assets at cost to fair value:
On 30 November 2018, the Group reclassified its investment in equity instruments of a
private Singapore company (XXX Pte Ltd) that was previously measured at cost of
$XXX to available-for-sale investments measured at fair value of $XXX, when a reliable
measure of fair value became available upon its listing on the SGX-ST.


24. Development properties 

Group
2018 2017 2017
$’000 $’000 $’000
Freehold land 1,200 1,200 1,200

Development costs 1,700 528 466
2,900 1,728 1,666
During the financial year, borrowing costs of $35,000 (2017: $33,000), arising from IAS 23.26.a and
borrowings obtained specifically for the development property were capitalised under b
“Development costs”. The rate used to determine the amount of borrowing costs eligible
for capitalisation was 7.5% (2017: 7.2%), which is the effective interest rate of the specific
borrowing. 
IAS 2.36.h
The freehold land under development has been pledged as security for a bank loan (Note
30).
Commentary:
 In this illustration, the entire amount included in development property is expected to be IAS 1.61
recovered or settled no more than twelve months after the reporting period.
If the amount includes amounts expected to be recovered more than twelve months after the
reporting period, an entity shall disclose the amount expected to be recovered more than
twelve months after the reporting period.
Borrowing costs capitalised
 Please refer to commentary no. 2 of Note 13 Property plant and equipment.

List of development properties
 Where the aggregate value for all properties for development, sale or for investment SGX 1207.11
purposes held by the entity represent more than 15% of the value of the consolidated net
tangible assets, or contribute more than 15% of the consolidated pre-tax operating profit,
entities listed on the SGX-ST are required to disclose further information regarding
development properties.
Illustrative disclosure pursuant to requirements of SGX 1207.11:
Description and location % Site area Gross Stage of completion

owned (square floor area as at date of annual
metre) (square report (expected
metre) year of completion)
An 8-storey luxurious condominium (Snow 100% 20,500 220,000 60% (2019)

Queen Palace) development along Paterson
Road, Singapore
A 35-storey integrated development with 100% 98,000 450,000 70% (2019)
residential apartments, offices and retail
components along Tian Shan Road, Changning
District, Shanghai, People’s Republic of China
A 20-storey luxurious condominium (Link 100% 88,000 300,000 30% (2020)

Spring Tower) along HuBei Road, Hanggu
District, Tianjin, People’s Republic of China


25. Inventories IAS 1.77 and 78.c
Group
2018 2017 2017
$’000 $’000 $’000
Balance sheet:
Raw materials (at cost) 4,432 4,992 4,852 IAS 2.36.b
Work-in-progress (at cost) 3,823 3,491 3,261

Finished goods (at cost or net realisable value) 15,203 14,159 16,423
23,458 22,642 24,536
Income statement:
IAS 2.36.d
Inventories recognised as an expense in cost of sales 80,567 82,122
Inclusive of the following charge/(credit): IAS 2.36.e
- Inventories written-down 352 257
IAS 2.36.f
- Reversal of write-down of inventories (190) –
The reversal of write-down of inventories was made when the related inventories were IAS 2.36.g
sold above their carrying amounts in 2018.
The Group has subjected finished goods amounting to $1,500,000 (31 December 2017: IAS 2.36.h
$1,500,000, 1 January 2017: $1,500,000), to a floating charge as security for bank
overdraft facilities (Note 30).


26. Derivatives
IFRS 7.7 and
Group 31
2018 31 December 2017 1 January 2017

$’000 $’000 $’000
Contract/ Contract/ Contract/

Notional Notional Notional
Amount Assets Liabilities Amount Assets Liabilities Amount Assets Liabilities
Forward currency
contracts 9,850 150 (22) 8,560 60 – 8,500 65 –
Interest rate swap 2,500 20 – 2,500 45 – 2,500 30 –
170 (22) 105 – 95 –
Total derivatives 170 (22) 105 – 95 –

Add: Equity securities
at fair value through
profit or loss (Note
22) 3,258 - - - - -
Add: Held for trading
investments (Note
22) - – 1,260 – 1,150 –
Add: Contingent
consideration for
business
combination (Note IFRS 7.8.a
32) – (685) – – – – and e
Total financial
assets/(liabilities) at
fair value through
profit or loss  3,428 (707) 1,365 – 1,245 – IFRS 7.8.e
At the Company level, the carrying amount of financial liability at fair value through profit
or loss  is the contingent consideration for business combination amounting to
$685,000 as at 31 December 2018 (31 December 2017: Nil, 1 January 2017: nil).
Forward currency contracts are used to hedge foreign currency risk arising from the
Group’s sales and purchases denominated in USD for which firm commitments existed at
the end of the reporting period, extending to March 2019 (31 December 2017: March
2018, 1 January 2017: 31 March 2017) (Note 40(d)).
The interest rate swap receives floating interest equal to SIBOR + 3% p.a. (31 December
2017: SIBOR + 3% p.a., 1 January 2017: SIBOR + 3% p.a.), pays a fixed rate of interest of
7.5% p.a. (31 December 2017: 7.5% p.a., 1 January 2017: 7.5%) and matures on 30
November 2019 (31 December 2017: 30 November 2018, 1 January 2017: 30
November 2017).
Commentary:
 Please refer to commentary no. 1 of Note 22 Investment securities.


IFRS 7.7 and 31

27. Cash and short-term deposits
Group Company
2018 2017 2017 2018 2017 2017
$’000 $’000 $’000 $’000 $’000 $’000
Cash at banks and on

hand 5,697 4,598 3,518 4,256 3,985 3,690
Short-term deposits 420 260 150 365 160 100
Cash and short-term
deposits 6,117 4,858 3,668 4,621 4,145 3,790
Cash at banks earns interest at floating rates based on daily bank deposit rates. Short-
term deposits are made for varying periods of between one day and three months,
depending on the immediate cash requirements of the Group and the Company, and earn
IFRS 7.7,31 and 34
interests at the respective short-term deposit rates. The weighted average effective
interest rates as at 31 December 2018 for the Group and the Company were 2.60% (31
December 2017: 2.80%, 1 January 2017: 2.70%) and 0.15% (31 December 2017: 0.20%,
1 January 2017: 0.18%) respectively. IFRS 7.34.a
Cash and short-term deposits denominated in foreign currencies are as follows:
Group Company
2018 2018
2017 2017 2017 2017
$’000 $’000
$’000 $’000 $’000 $’000
United States Dollar 442 325 295 108 120 105
Renminbi 20 15 10 8 5 8
For the purpose of the consolidated cash flow statement, cash and cash equivalents IAS 7.45
comprise the following at the end of the reporting period:
Group
2018
2017 2017
Cash and short-term deposits: $’000
$’000 $’000
- Continuing operations 6,117 4,858 3,668
- Discontinued operation (Note 11) 250 – –
6,367 4,858 3,668
Bank overdrafts (Note 30) (498) (1,444) (1,436)
Cash and cash equivalents  5,869 3,414 2,232
Commentary:
 In this illustration, it is assumed that the Group does not have any cash and cash
equivalents that are not available for use by the Group.
Where applicable, disclosure is required, together with a commentary by management, for
the amount of significant cash and cash equivalent balances held by the enterprise that are IAS 7.48
not available for use by the Group. There are various circumstances in which cash and cash
equivalent balances held by an enterprise are not available for use by the Group. Examples
include cash and cash equivalent balances held by a subsidiary that operates in a country IAS 7.49
where exchange controls or other legal restrictions apply when the balances are not
available for general use by the parent or other subsidiaries.
Cash and cash equivalents which are restricted in its use for more than twelve months shall
IAS 1.66.d
be classified as non-current assets.


28. Provisions  IAS 1.77 and

78.d
Group
Maintenance
warranties Legal claim Total
$’000 $’000 $’000

At 1 January 2017 1,785 - 1,785
Arose during the financial year 480 - 480
Utilised (465) - (465)
IAS 37.84.a
Unused amounts reversed (250) - (250)
Discount rate adjustment 10 - 10
Exchange differences (40) - (40)
IAS 37.84.b
At 31 December 2017 1,520 – 1,520
Acquisition of a subsidiary (Note 17) 50 – 50 IAS 37.84.c
Arose during the financial year 650 420 1,070
Utilised (333) – (333) IAS 37.84.d
Unused amounts reversed (60) – (60) IAS 37.84.e

Discount rate adjustment 30 – 30
Exchange differences 45 4 49
At 31 December 2018 1,902 424 2,326 IAS 37.84.a
2018
Current 377 424 801
Non-current 1,525 – 1,525
1,902 424 2,326
31 December 2017
Current 295 – 295
1,520 – 1,520
1 January 2017
Current 155 – 155
1,785 – 1,785
Maintenance warranties
A provision is recognised for expected warranty claims on certain specialised electronic IAS 37.85
components sold during the last two years, based on past experience of the level of
repairs and returns. It is expected that most of these costs will be incurred in the next two
financial years and all will have been incurred within three years from the end of the
reporting period. Assumptions used to calculate the provision for maintenance warranties
were based on current sales levels and current information available about returns based
on the three-year warranty period for the relevant specialised electronic components
sold.
During the financial year, based on the earlier mentioned statistics and warranty claims
IAS 1.98.g
experience, management concluded that the provision for maintenance warranties
exceeded the amount necessary to cover warranty claims on products sold during the last
two years. Accordingly, $60,000 (2017: $250,000) of the warranty provision has been
reversed.


28. Provisions  (continued)

Legal claim
On 30 June 2018, a competitor of the Group made a claim against one of the Group’s IAS 37.85
subsidiaries for infringing its technology licence from 2017 to 2018. At the end of the
reporting period, the management is in the process of negotiating a settlement
agreement with the plaintiff. The provision made represents the management’s estimate
of the settlement consideration, being the account of profit for the periods covered by the
licence. The settlement and compensation is expected to be concluded in 2019.
Commentary:
Comparative of movements in provision
IAS 37.84
 IAS 37 does not require comparatives of movements in provision to be presented.
Contingent liability
 In this illustration, no contingent liabilities are recognised in the business combination.
IFRS 3.B67.c
For contingent liabilities recognised in a business combination, the acquirer is required to
disclose the information required by paragraphs 84 and 85 of IAS 37 Provisions,
Contingent Liabilities and Contingent Assets for each class of provision.
29. Deferred capital grants
Group
2018 2017
$’000 $’000
Cost:
At 1 January 2,694 1,644
Received during the financial year 2,040 1,030
At 31 December 4,768 2,694
Accumulated amortisation:
Amortisation 239 180
2018 2017 2017
Net carrying amount: $’000 $’000 $’000
Current 300 210 150
Non-current 3,488 1,754 954
3,788 1,964 1,104
Deferred capital grants relate to government grants received for the acquisition of IAS 20.39.b
equipment for research activities undertaken by the Group’s subsidiary in People’s
Republic of China to promote technology advancement and transfer. There are no IAS 20.39.c
unfulfilled conditions or contingencies attached to these grants.


30. Loans and borrowings 

IFRS 7.7 and 31
Group Company
Maturity
2018 2017 2017 2018 2017 2017
Maturity $’000 $’000 $’000 $’000 $’000 $’000
Current:
Obligations under
finance leases (Note
37(d)) 2019 216 16 14 – – –
Bank overdrafts On demand 498 1,444 1,436 – – –
6% p.a. fixed rate SGD

bank loan 2019 475 830 900 – – –
1,189 2,290 2,350 – – –
Non-current:
Obligations under
finance leases (Note
37(d)) 2020-2025 720 160 190 – – –
7.5% p.a. fixed rate
SGD bonds 2020-2024 3,100 3,000 3,400 3,100 3,000 3,400
Bank loans:
- 6% p.a. fixed rate
SGD bank loan 2019 - 1,000 2,100 - - -
- 8% p.a. fixed rate
USD loan 31 July 2024 1,545 - - – – –
- SGD loan at LIBOR +
2.0% p.a. 2020-2024 2,200 2,200 2,200 2,200 2,200 2,200
- SGD loan at SIBOR + 30 November

3.0% p.a. 2022 5,400 5,400 5,400 – – –
- 8.5% p.a. fixed rate

SGD loan – – 1,000 1,000 – – –
Convertible
redeemable
preference shares 2021-2024 450 428 - 450 428 -
13,415 13,188 14,290 5,750 5,628 5,600
Total loans and

borrowings 14,604 15,478 16,640 5,750 5,628 5,600
Obligations under finance leases

These obligations are secured by a charge over the leased assets (Note 13). The average
discount rate implicit in the leases is 8.5% p.a. (2017: 8.8% p.a.). These obligations are
denominated in the respective functional currencies of the relevant entities in the Group.
Bank overdrafts
Bank overdrafts are denominated in SGD, bear interest at SIBOR + 3.0% p.a. (2017:
SIBOR + 3.0% p.a.) and are secured by a floating charge over certain inventories (Note
25).
6% p.a. fixed rate SGD bank loan
This loan is fully repayable on 30 June 2019 (2017: 30 June 2018) and is secured by a
charge over freehold land under development (Note 24).


30. Loans and borrowings  (continued)

7.5% p.a. fixed rate SGD bonds
These bonds with a face value of $3,200,000 are unsecured and are repayable in 5 equal
annual instalments commencing on 1 January 2020.
8% p.a. fixed rate USD bank loan
This loan has been drawn down under a six-year multi-option facility (MOF). The loan is
repayable within 12 months after the reporting date, but has been classified as long-term IAS 1.73
because the Group expects and has the discretion to exercise its rights under the MOF to
refinance this funding. Such immediate replacement funding is available until 31 January
2024. The total amount repayable on maturity is $1,600,000. The facility is secured by a
first mortgage over certain freehold land and buildings of the Group (Note 13).
SGD bank loan at LIBOR + 2.0% p.a.
This loan is secured by a first mortgage over certain investment properties (Note 14) of
the Group and is repayable in two equal instalments due on 31 December 2020 and 31
January 2024. The loan includes a financial covenant which requires the Group to
maintain a gearing ratio not exceeding 50%.
SGD bank loan at SIBOR + 3.0% p.a.
This loan is secured by a first mortgage over certain of the Group’s freehold land and
buildings (Note 13), a charge over certain investment securities (Note 22) of the Group
and corporate guarantee provided by the Company (Note 38(a)). Repayment of this loan
is due on 30 November 2022. The loan includes a financial covenant which requires the
Group to maintain a net current asset and net asset positions throughout the tenure of
the loan.
8.5% p.a. fixed rate SGD loan
As at 31 December 2018, this loan has been presented as part of the liabilities of the
disposal group classified as held for sale (Note 11).
Convertible Redeemable Preference Shares 
IFRS 7.7
As at 31 December 2018 and 2017, there were 505,000 Convertible Redeemable IAS 32.28 and 31
Preference Shares (CRPS) issued and fully paid. The shares were issued at $1 each and
are convertible at the option of the shareholders into ordinary shares of the Company on
1 January 2021 on the basis of one ordinary share for every preference share held. Any
preference shares not converted will be redeemed on 31 December 2023 at a price of
$1.20 per share. The preference shares carry a dividend of 8% p.a., payable half-yearly in
arrears on 30 June and 31 December. The dividend rights are non-cumulative and the
shareholders have no voting rights.
The carrying amount of the liability component of CRPS at the end of the reporting period
is arrived at as follows:
Group and Company
2018 2017
$’000 $’000
Face value of CRPS 505 505

Equity component (96) (96) IAS 32.28
Liability component of CRPS at initial recognition 409 409

Add: Accumulated amortisation of discount
- Opening balance at 1 January 19 –
- Accretion of interests during the financial year 22 19
- Closing balance at 31 December 41 19
Liability component of CRPS at the end of the reporting IAS 32.28
450 428
period


Commentary:
Defaults or breaches
IFRS 7.18
 If during the period, there were defaults or breaches of loan agreement terms, the entity
should disclose:
(a) Details of any defaults during the period of principal, interest, sinking fund, or
redemption terms of those loans payable;
(b) The carrying amount of the loans payable in default at the reporting date; and
(c) Whether the default was remedied, or the terms of the loans payable were
renegotiated, before the financial statements were authorised for issue.
These disclosure requirements are also applicable to breaches of loan agreement terms IFRS 7.19
other than those mentioned above when breaches permit the lender to demand accelerated
repayment (unless the breaches were remedied, or the terms of the loan were
renegotiated, on or before the reporting date). 
Compound financial instruments with multiple embedded derivatives
 If an entity has issued an instrument that contains both a liability and an equity component IFRS 7.17
and the instrument has multiple embedded derivatives whose values are interdependent
(such as a callable convertible debt instrument), it shall disclose the existence of those
features.
Defaults or breaches
 Illustrative note disclosure for default on interest payment:

The Company has defaulted in interest payment of $XXX on bank borrowings carried at
$XXX at the end of the reporting period. The Company experienced a temporary
shortage of funds due to decrease in market demand in the Company’s products in the
first two quarters. The interest payable of $XXX which was overdue since October
2018 remained unpaid as at the date when these financial statements were authorised
for issue.
Illustrative note disclosure for breach of loan covenant:
During the current financial year, the Company breached a covenant of a bank loan.
The Company did not fulfil the requirement to maintain gearing ratio at X.XX for a
credit line of $XXX. The credit line was fully drawn down and presented as current
liability at the end of the reporting period. The bank is contractually entitled to request
for immediate repayment of the outstanding loan amount in the event of breach of
covenant.
The bank had not requested for immediate repayment of the outstanding loan amount
as at the date when these financial statements were authorised for issue. Management
commenced renegotiation of the loan agreement terms in December 2018. As of the
date the financial statements were authorised for issue, the renegotiation was still in
progress.



A reconciliation of liabilities arising from the Group’s financing activities excluding bank IAS 7.44A
overdrafts is as follows:  -44B
2017 Cash Non-cash changes 2018

flows
Acquisition Reclassified Foreign Accretion Other*
as part of exchange of
disposal movement interests
group
$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
Loans and bonds

- current 830 (1,355) - - - - 1,000 475
- non-current 12,600 1,540 - (1,000) 5 100 (1,000) 12,245
Obligations under
finance leases
- current 16 (135) 240 - (10) - 105 216
- non-current 160 - 788 - (123) - (105) 720
Convertible
redeemable
preference shares 428 - - - - 22 - 450
Total 14,034 50 1,028 (1,000) (128) 122 - 14,106
1 January Cash Non-cash changes 2017

2017 flows
Acquisition Foreign Accretion of Other*
exchange interests
movement
$’000 $’000 $’000 $’000 $’000 $’000
Loans and bonds

- current 900 (1070) - - - 1,000 830
- non-current 14,100 (600) - (35) 135 (1,000) 12,600
Obligations under
finance leases
- current 14 (115) 30 (3) - 90 16
- non-current 190 - 100 (40) - (90) 160
Convertible
redeemable
preference shares - 409 - - 19 - 428
Total 15,204 (1,376) 130 (78) 154 - 14,034
*The ‘other’ column relates to reclassification of non-current portion of loans and bonds
including obligations under finance leases due to passage of time.


Commentary:
Changes in liabilities arising from financing activities

IAS 7.44A
 IAS 7.44A requires an entity to provide disclosures that enable users of financial
statements to evaluate changes in liabilities arising from financing activities, including both
changes arising from cash flows and non-cash changes.
This illustration has illustrated one way to fulfil the disclosure requirement by providing a IAS 7.44D
reconciliation between the opening and closing balances in the balance sheet for liabilities
arising from financing activities, including the changes required by IAS 7.44B, namely:
IAS 7.44B
(a) changes from financing cash flows,
(b) changes arising from obtaining or losing control of subsidiaries or other businesses,
(c) effect of changes in foreign exchange rates,
(d) changes in fair values, and
(e) other changes.
In addition, the disclosure requirement also applies to changes in financial assets, for IAS 7.44C
example, assets that hedge liabilities arising from financing activities, if cash flows from
those financial assets were, or future cash flows will be included in cash flows from
financing activities.
If an entity provides the disclosures required by IAS 7.44A in combination with disclosures IAS 7.44E
of changes in other assets and liabilities, it shall disclose the changes in liabilities arising
from financing activities separately from changes in those other assets and liabilities.
An entity is not required to provide comparative information for preceding periods in the IAS 7.60
first year of application of the amendments.


31. Trade and other payables IAS 1.77

IFRS 7.7 and 31
Group Company
2018 2017 2017 2018 2017 2017
$’000 $’000 $’000 $’000 $’000 $’000
Trade and other payables

(current):
Trade payables 15,698 13,457 14,194 332 290 203
Other payables 1,381 1,129 1,039 138 124 185
Amounts due to related
companies 288 379 255 – – -
IAS 24.18
17,367 14,965 15,488 470 414 388
Other payables (non-
current):
Deferred cash settlement
(Note 17) 200 – - – – -
Total trade and other 17,567 14,965 15,488 470 414 388
payables
Add:
- Other liabilities (Note 32) 2,974 2,579 3,067 481 446 261
- Loans and borrowings (Note
30) 14,604 15,478 16,640 5,750 5,628 5,600
Total financial liabilities
IFRS 7.8.f
carried at amortised cost  35,145 33,022 35,195 6,701 6,488 6,249
Trade payables/other payables

These amounts are non-interest bearing. Trade payables are normally settled on 60-day IFRS 7.7 and 31
terms while other payables have an average term of six months.

Trade payables denominated in foreign currencies as at 31 December are as follows: IFRS 7.34.a
Group Company
2018 2017 2017 2018 2017 2017
$’000 $’000 $’000 $’000 $’000 $’000
United States Dollar 3,140 2,962 2,365 66 49 38
Amounts due to related companies

IFRS 7.7 and 31
These amounts are trade related, unsecured, non-interest bearing, repayable on demand IAS 24.18
and are to be settled in cash.
Commentary:
IAS 24.23
 Please refer to commentary no. 1 of Note 22 Investment securities.


32. Other liabilities IAS 1.77

IFRS 7.7 and 31
Group Company
2018 2017 2017 2018 2017 2017
$’000 $’000 $’000 $’000 $’000 $’000
Accrued operating expenses 2,948 2,571 3,047 401 376 181

Financial guarantees (Note
38(a)) 26 8 20 80 70 80
2,974 2,579 3,067 481 446 261
Contingent consideration for
business combination 
(Note 17) 685 – - 685 – -
3,659 2,579 3,067 1,166 446 261

As part of the purchase agreement with the previous owner of MSAX, a contingent
consideration has been agreed. This consideration is dependent on the profit before tax of
MSAX during a 12-month period. The fair value at the acquisition date was $450,000,
which has been adjusted as of 31 December 2018 due to a significantly enhanced
performance compared to budget to a fair value of $685,000. The consideration is due
for final measurement and payment to the former shareholders on 18 October 2018. No
further significant change to the consideration is expected.

 Illustrative note disclosure for contingent consideration for business combination when the
amount is finalised in 2018:
Note X Other liabilities
IFRS 3.B64
As part of the purchase agreement with the previous owners of MSAX dated 18 October
2018, a portion of the consideration was determined to be contingent on the performance of
the acquired entity. At 18 October 2018, a total of $700,000 was paid to the previous
owner of MSAX under this arrangement.
Group
2018
$’000
Initial fair value of the contingent consideration at acquisition date 450 IFRS 3.B64.g.i
Fair value adjustment as at 31 December 2018 235
Financial liability for the contingent consideration as of 31 December 2018 685
Fair value adjustment as at 18 October 2018 15
Total consideration paid 700
As of 31 December 2018 and prior to payment, the fair value of the contingent IFRS 3.58
consideration was reassessed which led to additional cost charged to profit or loss. The initial
fair value of the consideration of $450,000 is included in cash flows from investing
activities, the remainder, totalling to $250,000, is recognised in cash flows from operating
activities.
Group
Extract of Consolidated Cash Flow Statement
2018
$’000
Cash flows from operating activities:
Settlement of contingent consideration for business combination ( 250)
Cash flows from investing activities:
Settlement of contingent consideration for business combination (450)
IAS 7.16


33. Share capital and treasury shares

IAS 1.77 and 78.e
a) Share capital IAS 32.33
Group and Company IAS 1.79
2018 2017
No. of No. of
shares shares
‘000 $’000 ‘000 $’000
Issued and fully paid ordinary shares IAS 1.79.a.ii
At 1 January 23,080 9,665 22,940 9,510 IAS 1.79.a. iv

Issued for acquisition of a subsidiary
(Note 17) 1,305 1,475 – –
Share issuance expense (Note 17) – (50) – – IAS 32.37
Exercise of employee share options
(Note 35) – – 140 155 IFRS 2.50
IAS 1.79.a.ii and iv
At 31 December 24,385 11,090 23,080 9,665
IAS 1.79.a.v
The holders of ordinary shares (except treasury shares) are entitled to receive
dividends as and when declared by the Company. All ordinary shares carry one vote per IAS 1.79.a.iii
share without restrictions. The ordinary shares have no par value.
The Company has two employee share option plans under which options to subscribe IAS 1.79.a.vii
for the Company’s ordinary shares have been granted to employees of the Group.
b) Treasury shares
Group and Company
2018 2017 IAS 1.79.a.vi
No. of No. of
shares shares
‘000 $’000 ‘000 $’000
At 1 January – – – –
Acquired during the financial year (200) (254) – –
Reissued pursuant to employee share option
plans:
- For cash on exercise of employee share
options (Note 35) 75 81 – –
- Transferred from employee share option
reserve – 79 – –
- Gain transferred to gain or loss on reissuance
of treasury shares – (65) – –
75 95 – –
At 31 December (125) (159) – –
Treasury shares relate to ordinary shares of the Company that is held by the Company.
The Company acquired 200,000 (2017: nil) shares in the Company through purchases IAS 32.33
on the Singapore Exchange during the financial year. The total amount paid to acquire
the shares was $254,000 (2017: nil) and this was presented as a component within
shareholders’ equity.
The Company reissued 75,000 (2017: nil) treasury shares pursuant to its employee
share option plans at a weighted average exercise price of $1.08 (2017: nil) each.
IAS 32.33

34. Other reserves IAS 1.79.b
a) Fair value adjustment reserve

Fair value adjustment reserve represents the cumulative fair value changes, net of tax,
of available-for-sale financial assets until they are disposed of or impaired.
b) Asset revaluation reserve

The asset revaluation reserve represents increases in the fair value of freehold land
and buildings, net of tax, and decreases to the extent that such decrease relates to an
increase on the same asset previously recognised in other comprehensive income.
c) Statutory reserve fund

In accordance with the Foreign Enterprise Law applicable to the subsidiary in the
People’s Republic of China (PRC), the subsidiary is required to make appropriation to a
Statutory Reserve Fund (SRF). At least 10% of the statutory profits after tax as
determined in accordance with the applicable PRC accounting standards and
regulations must be allocated to the SRF until the cumulative total of the SRF reaches
50% of the subsidiary’s registered capital. Subject to approval from the relevant PRC
authorities, the SRF may be used to offset any accumulated losses or increase the
registered capital of the subsidiary. The SRF is not available for dividend distribution to
shareholders.
d) Foreign currency translation reserve

The foreign currency translation reserve represents exchange differences arising from
the translation of the financial statements of foreign operations whose functional
currencies are different from that of the Group’s presentation currency.
e) Employee share option reserve

Employee share option reserve represents the equity-settled share options granted to
employees (Note 35). The reserve is made up of the cumulative value of services
received from employees recorded over the vesting period commencing from the grant
date of equity-settled share options, and is reduced by the expiry or exercise of the
share options.
f) Gain or loss on reissuance of treasury shares
This represents the gain or loss arising from purchase, sale, issue or cancellation of
treasury shares. No dividend may be paid, and no other distribution (whether in cash or
otherwise) of the Company’s assets (including any distribution of assets to members on
a winding up) may be made in respect of this reserve.
g) Equity component of convertible redeemable preference shares

This represents the residual amount of convertible redeemable preference shares
(CRPS) after deducting the fair value of the liability component. This amount is
presented net of transaction costs and deferred tax liability arising from the CRPS.


35. Employee benefits
Group
2018 2017
$’000 $’000
Employee benefits expense (including directors):

Salaries and bonuses 17,758 16,332
Central Provident Fund contributions 2,107 2,166 IAS 19.46
Share-based payments (Employee share option plans) 245 150 IFRS 2.51.a
Other short-term benefits 392 376

20,502 19,024 IAS 1.104
Employee share option plans  IAS 102.44
Senior executive option plan

Under the senior executive option plan (SEOP), share options are granted to senior IFRS 2.45.a
executives with more than 12 months’ service. The exercise price of the options is equal
to the market price of the shares on the date of grant. The options vest if and when the
Group’s earnings per share amount increases by 12%, within three years from the date of
grant. If this increase is not met, the options will lapse. The contractual life of each option
granted is five years. There are no cash settlement alternatives. The Group does not have
a past practice of cash settlement for these share options.
General employee share option plan

All other employees are entitled to a grant of options, under the general employee share IFRS 2.45.a
option plan (GESP), once they have been in service for two years. The vesting of the
options is dependent on the total shareholder return (TSR) of the Group as compared to a
group of principal competitors. Employees must remain in service for a period of three
years from the date of grant. The exercise price of the options is equal to the market price
of the shares on the date of grant. The contractual life of the options is five years. There
are no cash settlement alternatives. The Group does not have a past practice of cash
settlement for these awards.
There has been no cancellation or modification to the SEOP and GEOP during both 2018
and 2017.
Movement of share options during the financial year

The following table illustrates the number (No.) and weighted average exercise prices
(WAEP) of, and movements in, share options during the financial year:
2018 2017
No. WAEP ($) No. WAEP ($)
Outstanding at 1 January 425,000 1.22 480,000 1.20 IFRS 2.45.b.i

- Granted 200,000 1.30 125,000 1.26 IFRS 2.45.b.ii
- Forfeited – – (25,000) 1.05 IFRS 2.45.b.iii
- Exercised (75,000) 1.08 (140,000) 1.11 IFRS 2.45.b.iv
- Expired (25,000) 1.16 (15,000) 1.15 IFRS 2.45.b.v
Outstanding at 31 December 525,000 1.24 425,000 1.22 IFRS 2.45.b.vi
Exercisable at 31 December 200,000 1.18 195,000 1.10 IFRS 2.45.b.vii


35. Employee benefits (continued)

Employee share option plans  (continued)
Movement of share options during the financial year (continued)
- The weighted average fair value of options granted during the financial year was IFRS 2.47.a
$1.14 (2017: $1.03).
- The weighted average share price at the date of exercise of the options exercised IFRS 2.45.c
during the financial year was $1.30 (2017: $1.20). 
- The range of exercise prices for options outstanding at the end of the year was $1.05 IFRS 2.45.d
to $1.30 (2017: $1.05 to $1.26).  The weighted average remaining contractual life
for these options is 3.90 years (2017: 3.86 years).
Fair value of share options granted IFRS 2.46
The fair value of the share options granted under the SEOP is estimated at the grant date IFRS 2.47.a.i
using a binomial option pricing model, taking into account the terms and conditions upon
which the share options were granted.
The fair value of share options granted under the GESP is estimated at the date of the IFRS 2.47.a.i and iii
grant using a Monte Carlo simulation model, taking into account the terms and conditions
upon which the options were granted. The model simulates the TSR and compares it
against the group of principal competitors. It takes into account historic dividends, share
price fluctuation covariance of the Company and each entity of the group of competitors
to predict the distribution of relative share performance.
The following table lists the inputs to the option pricing models for the years ended 31 IFRS 2.47.a.i
December 2018, 31 December 2017 and 1 January 2017:
SEOP (Binomial) GESP (Monte Carlo)

31 1 31 1
2018 December January 2018 December January
2017 2017 2017 2017
Dividend yield (%) 3.13 3.01 3.03 3.13 3.01 3.03

Expected volatility (%) 15.00 16.30 15.90 16.00 17.50 16.90
Risk-free interest rate (% p.a.) 4.10 4.00 3.95 4.10 4.00 3.95
Expected life of option (years) 4.05 4.25 4.10 4.85 4.65 4.10
Weighted average share price ($) 1.30 1.20 1.25 1.30 1.20 1.25
IFRS 2.47.a.ii
The expected life of the share options is based on historical data and is not necessarily
indicative of exercise patterns that may occur. The expected volatility reflects the
assumption that the historical volatility over a period similar to the life of the options is
indicative of future trends, which may not necessarily be the actual outcome.


35. Employee benefits (continued)
Commentary:
 In this illustration, all the share-based payment transactions are equity-settled. If an entity IFRS 2.51.a and b
has share-based payment transactions that are either cash-settled or with cash alternatives
(for example, share appreciation rights), the entity should disclose:
- The total expense recognised for the period arising from the share-based payment
transactions;
- The total carrying amount of liabilities at the end of the period; and
- The total intrinsic value at the end of the period of liabilities for which the
counterparty’s right to cash or other assets had vested by the end of the period (e.g.,
vested share appreciation rights). 
Weighted average share price
 If options were exercised on a regular basis throughout the period, an entity may instead IFRS 2.45.c
disclose the weighted average share price during the period.
Range of exercise prices
 If the range of exercise prices is wide, the outstanding options shall be divided into ranges IFRS 2.45.d
that are meaningful for assessing the number and timing of additional shares that may be
issued and the cash that may be received upon exercise of those options.
 Illustrative note disclosures:

Share Appreciation Rights (SARs) Plan
Business development managers in the electronic components segment are granted IFRS 2.45.a
share options, which can only be settled in cash. These SARs will vest when a specified
target number of new sales contracts are closed. The contractual life of the options is
six years.
The expense recognised in profit or loss granted under the Share Appreciation Rights IFRS 2.51.a
Plan during the financial year is $XXX (2017: $XXX).
The carrying amount of the liability recognised in the Group’s and the Company’s
IFRS 2.51.b.i
balance sheets relating to such share options at 31 December 2018 is $XXX (2017:
$XXX).
No Share Appreciation Rights granted under this plan had vested at the end of the IFRS 2.51.b.ii
reporting period (2017: nil).


36. Related party transactions
a) Sale and purchase of goods and services

IAS 24.18
In addition to the related party information disclosed elsewhere in the financial
statements, the following significant transactions between the Group and related
parties took place at terms agreed between the parties during the financial year:
 IAS 24.19
Group
2018 2017
$’000 $’000
Sale of finished goods to:

- Related companies 700 890
- Associates 50 30
- A company related to a director 225 135
Purchase of raw materials from:
- Related companies 1,058 1,200
- Associates 140 106
Purchase of accounting services from a firm related to a director 25 18
Management fees from joint venture 50 60
Interest income from:
- Associates 80 76
- A fellow subsidiary 98 92
Related companies:
These are subsidiaries and associates of Good Group (International) Ltd and its
subsidiaries, excluding entities within the Group.
Company / firm related to a director: IAS 24.18
- One of the directors of the Company, through his 25% (2017: 25%) equity interest in
Unik-One Pte Ltd (UOPL), had an interest in a contract for the supply of specialised
digital components to UOPL. During the financial year, the Group sold specialised
digital components of $225,000 (2017: $135,000) to UOPL. No balance with UOPL
was outstanding at the end of the reporting period (31 December 2017: nil, 1
January 2017: nil).
- The Group has entered into a contract with LPS Associates LLP, a firm of which the
wife of one of the directors of the Company is the managing partner, for the
provision of consolidation accounting services to the Company for an amount of
$25,000 (2017: $18,000). No balance with the firm was outstanding at the end of
the reporting period (31 December 2017: nil, 1 January 2017: nil).
b) Commitments with related parties

IAS 24.18.b
On 1 July 2018, XYZ Technologies Pte Ltd entered into a two-year agreement ending
30 June 2020 with XYZ China Co. Ltd to purchase specific electrical and optional
cables that XYZ Technologies Pte Ltd uses in its production cycle. XYZ Technologies
Pte Ltd expects the potential purchase volume to be $400,000 in 2019 and $300,000
in the first 3 months of 2020. The purchase price is based on XYZ China Co. Ltd’s
actual cost plus 5% margin and will be settled in cash within 30 days after receiving the
inventory.


36. Related party transactions (continued)
c) Compensation of key management personnel  IAS 24.17
Group
2018 2017
$’000 $’000
Short-term employee benefits 4,938 4,352

Central Provident Fund contributions 355 357
Other short-term benefits 25 80
Share-based payments 80 60
5,398 4,849
Comprise amounts paid to:
Directors of the Company 3,470 3,119
Other key management personnel 1,928 1,730
5,398 4,849
Directors’ interests in employee share option plan IAS 24.18
During the financial year:
- 37,000 (2017: 25,000) share options were granted to two of the Company's
executive directors under the SEOP (Note 35) at an exercise price of $1.30 (2017:
$1.26) each.
- These directors exercised options for 10,000 (2017: 5,000) ordinary shares of the
Company at a price of $1.05 (2017: $1.05) each, with a total cash consideration of
$10,500 (2017: $5,250) paid to the Company.
At the end of the reporting period, the total number of outstanding share options
granted by the Company to the abovementioned directors under the SEOP amount to
130,000 (2017: 93,000). No share options have been granted to the Company's non-
executive directors.
Commentary:
Related party transactions

 Disclosures that related party transactions were made on terms equivalent to those that IAS 24.23
prevail in arm’s length transactions are made only if such terms can be substantiated.
 An entity should make disclosures for transactions with related parties separately for each IAS 24.19 and 20
of the following categories: (a) the parent; (b) entities with joint control or significant
influence over the entity; (c) subsidiaries; (d) associates; (e) joint ventures in which the
entity is a venturer; (f) key management personnel of the entity or its parent; and (g) other
related parties. Such categorisation help provide a more comprehensive analysis of related
party balances and transactions.


36. Related party transactions (continued)
Related party transactions
 The following are examples of transactions that are disclosed if they are with a related party: IAS 24.21
(a) purchases or sales of goods (finished or unfinished);

(b) purchases or sales of property and other assets;
(c) rendering or receiving of services;
(d) leases;
(e) transfers of research and development;
(f) transfers under licence agreements;
(g) transfers under finance arrangements (including loans and equity contributions in cash or
in kind);
(h) provision of guarantees or collateral;
(i) commitments to do something if a particular event occurs or does not occur in the future,
including executor contracts (recognised and unrecognised); and
(j) settlement of liabilities on behalf of the entity or by the entity on behalf of that related
party.
 Items of a similar nature may be disclosed in aggregate except when separate disclosure is IAS 24.24
necessary for an understanding of the effects of related party transactions on the financial
statements of the entity.
Key management personnel 
 Key management personnel are those persons having authority and responsibility for planning, IAS 24.9
directing and controlling the activities of the entity, directly or indirectly, including any director
(whether executive or otherwise) of that entity.

Transactions with key management personnel
 In this illustration, the Group does not have any transactions and outstanding balances,
including commitments with key management personnel, close family members of key
management personnel and entities which the key management personnel have control or joint
control.
Illustrative disclosure when the Group have such transactions are as follows:
The transactions and outstanding balances related to key management personnel, close
family members of key management personnel and entities in which the key management
personnel have control or joint control were as follows:
Group
Transactions during Outstanding IAS 24.18.a,b
the year balances as at 31
December
Related parties Transactions 2018 2017 2018 2017
$’000 $’000 $’000 $’000
Mrs. May Lim Legal fees (a) - XXX - XXX
Draco Pte. Ltd. Purchase of office
stationeries (b) XXX XXX XXX -
(a) The Group uses the legal services provided by Mrs. May Lim who is a close family member
IAS 24.18.b
of Mr. Goh Hock Inn, a Director of the Company. The legal fees paid were in relation to
purchase of certain non-current assets of the Group. The fees charged were based on
normal market rates for such services and were due and payable under normal payment
terms.
(b) The Group purchases its office stationeries from Draco Pte. Ltd., a Company controlled by
Mr. Goh Hock Inn, a Director of the Company. These purchases are based on normal
market rates for such supplies and were due and payable under normal payment terms.


37. Commitments
a) Capital commitments
Capital expenditure contracted for as at the end of the reporting period but not
recognised in the financial statements are as follows:
Group Company
31 31
December 1 January December 1 January
2018 2017 2017 2018 2017 2017
$’000 $’000 $’000 $’000 $’000 $’000
Capital commitments in respect

of property, plant and
equipment 1,690 550 400 90 55 80
IAS 16.74.c
Share of joint venture’s capital
commitments in relation to
investment properties  63 168 – – – – IFRS 12.23.a
IAS 40.75.h
1,753 718 400 90 55 80
b) Operating lease commitments – as lessee

In addition to the land use rights disclosed in Note 16, the Group has entered into
IAS 17.35.d
commercial leases on certain motor vehicles and office equipment. These leases have
an average tenure of between three and six years with no renewal option or contingent
rent provision included in the contracts. The Group is restricted from subleasing the
leased equipment to third parties.
Minimum lease payments, including amortisation of land use rights recognised as an
IAS 17.35.c
expense in profit or loss for the financial year ended 31 December 2018 amounted to
$484,000 (31 December 2017: $387,000, 1 January 2017: $355,000).
Future minimum rental payable under non-cancellable operating leases (excluding land
IAS 17.35.a
use rights) at the end of the reporting period are as follows: 
Group
2018 2017 2017
$’000 $’000 $’000
Not later than one year 370 352 342

Later than one year but not later than five years 800 926 910
Later than five years 115 126 120
1,285 1,404 1,372
c) Operating lease commitments – as lessor

The Group has entered into commercial property leases on its investment properties.
These non-cancellable leases have remaining lease terms of between two and eight
IAS 17.56.c
years. All leases include a clause to enable upward revision of the rental charge on an
annual basis based on prevailing market conditions.
Future minimum rental receivable under non-cancellable operating leases at the end of
the reporting period are as follows:  IAS 17.56.a
Group
2018 2017 2017
$’000 $’000 $’000
Not later than one year 492 440 450

Later than one year but not later than five years 1,968 1,760 1,720
Later than five years 1,400 1,110 1,010
3,860 3,310 3,180


37. Commitments (continued)
Commentary:
 An entity shall disclose total commitments it has made but not recognised at the reporting date IFRS 12.B18
(including its share of commitments made jointly with other investors with joint control of a
joint venture) relating to its interests in joint ventures. Commitments are those that may give
rise to a future outflow of cash or other resources.
Unrecognised commitments that may give rise to a future outflow of cash or other resources IFRS 12.B19
include:
(a) unrecognised commitments to contribute funding or resources as a result of, for example:
i. the constitution or acquisition agreements of a joint venture (that, for example,
require an entity to contribute funds over a specific period).
ii. capital-intensive projects undertaken by a joint venture.
iii. unconditional purchase obligations, comprising procurement of equipment, inventory
or services that an entity is committed to purchasing from, or on behalf of, a joint
venture.
iv. unrecognised commitments to provide loans or other financial support to a joint
venture.
v. unrecognised commitments to contribute resources to a joint venture, such as assets
or services.
vi. other non-cancellable unrecognised commitments relating to a joint venture.
(b) Unrecognised commitments to acquire another party’s ownership interest (or a portion of
that ownership interest) in a joint venture if a particular event occurs or does not occur in
the future.
Future minimum lease payments under non-cancellable operating leases
 The disclosure of future minimum lease payments according to time bands relates only to non- IAS 17.4
cancellable operating leases. A non-cancellable lease is a lease that is cancellable only:
(a) upon the occurrence of some remote contingency;
(b) with the permission of the lessor;
(c) if the lessee enters into a new lease for the same or an equivalent asset with the same
lessor; or
(d) upon payment by the lessee of such an additional amount that, at inception of the lease,
continuation of the lease is reasonably certain.
A leasing arrangement where the lessee has the right to terminate lease by providing a written
notice to the lessor without incurring losses significant in comparison to the value of remaining
lease payments is generally not considered a non-cancellable lease and is not included in such
disclosure.


37. Commitments (continued)
d) Finance lease commitments – as lessee

The Group has finance leases for certain items of plant and equipment and furniture IAS 17.31.e
and fixtures. These leases have terms of renewal but no purchase options and
escalation clauses. Renewals are at the option of the specific entity that holds the
lease.
Future minimum lease payments under finance leases together with the present value IAS 17.31.b
of the net minimum lease payments are as follows:
Group

$’000 $’000 $’000
Present Present Present
Minimum value of Minimum value of Minimum value of
lease payments lease payments lease payments
payments (Note 30) payments (Note 30) payments (Note 30)
Not later than one year 251 216 30 16 28 14

Later than one year but
not later than five years 392 252 265 120 315 152
Later than five years 643 468 117 40 136 38
Total minimum lease

payments 1,286 936 412 176 479 204
Less: Amounts
representing finance
charges (350) – (236) – (275) –
Present value of minimum

lease payments 936 936 176 176 204 204


38. Contingencies
a) Contingent liabilities IAS 37.86
Legal claim
On 30 November 2018, a customer has commenced an action against the Group in IAS 11.45
respect of construction works claimed to be sub-standard. The estimated payout is
$250,000 should the action be successful. A trial date has not yet been set and
therefore it is not practicable to state the timing of any payment. The Group has been
advised by its legal counsel that it is possible, but not probable, that the action will
succeed and accordingly no provision for any liability has been made in these financial
statements.
Guarantees
The Group has provided the following guarantees at the end of the reporting period: IAS 24.20.h
- It has guaranteed its share of $20,000 (31 December 2017: $15,000; 1 January IFRS 12.23.b
2017: $13,000) of the associate’s contingent liabilities which have been incurred
jointly with other investors.
IFRS 12.23.b
- It has guaranteed part of the bank overdraft of the associate to a maximum
amount of $300,000 (31 December 2017: nil, 1 January 2017: nil), which it is
severally liable for in the event of default by the associate.
- It has guaranteed its interest in its share of the joint venture’s loan of $245,000 IFRS 12.23.b
(31 December 2017: $240,000, 1 January 2017: $190,000) (Note 30).
- It has guaranteed to an unrelated party the performance of a contract for the joint IFRS 12.23.b
venture. No liability is expected to arise (31 December 2017: nil, 1 January 2017:
nil).
The Company has provided a corporate guarantee to a bank for a $5,400,000 (31 IAS 24.20.h
December 2017: $5,400,000, 1 January 2017: $5,400,000) loan (Note 30) taken by
a subsidiary.
b) Contingent asset
a) A legal claim for defamation of $500,000 was lodged against one of the Group’s IAS 37.89
competitors in October 2017. Based on advice from the legal counsel, the Group is
confident that the dispute will be settled in its favour.
b) The Group is claiming amounts (such as variations and additional works under the IAS 11.45
construction contracts) and pending proceedings and disputes with clients. It is not
possible to reasonably determine the extent and timing of possible inflow of
economic benefits. These claims are therefore not recognised in these financial
statements.


39. Fair value of assets and liabilities 
a) Fair value hierarchy

The Group categorises fair value measurements using a fair value hierarchy that is IFRS 13.72
dependent on the valuation inputs used as follows:
- Level 1 – Quoted prices (unadjusted) in active market for identical assets or IFRS 13.76
liabilities that the Group can access at the measurement date,
IFRS 13.81
- Level 2 – Inputs other that quoted prices included within Level 1 that are observable
for the asset or liability, either directly or indirectly, and
- Level 3 – Unobservable inputs for the asset or liability. IFRS 13.86
Fair value measurements that use inputs of different hierarchy levels are categorised in IFRS 13.73
its entirety in the same level of the fair value hierarchy as the lowest level input that is
significant to the entire measurement.
Commentary:
 An entity shall disclose information that helps users of its financial statements assess both of IFRS 13.91
the following:
(a) For assets and liabilities that are measured at fair value on a recurring or non-recurring
basis in the balance sheet after initial recognition, the valuation techniques and inputs
used to develop those measurements.
(b) For recurring fair value measurements using significant unobservable inputs (Level 3), the
effect of the measurements on profit or loss or other comprehensive income for the
period.
IFRS 13.92
To meet the objective above, an entity shall consider all the following:
(a) The level of detail necessary to satisfy the disclosure requirements;
(b) How much emphasis to place on each of the various requirements;
(c) How much aggregation and disaggregation to undertake; and
(d) Whether users of financial statements need additional information to evaluate the
quantitative information disclosed.
If the disclosures provided in accordance with IFRS 13 and other IFRSs are insufficient to meet
the objectives above, an entity shall disclose additional information necessary to meet those
objectives.


39. Fair value of assets and liabilities (continued)
b) Assets and liabilities measured at fair value 

The following table shows an analysis of each class of assets and liabilities measured at IFRS 13.93.a and
b
fair value at the end of the reporting period:
Group
2018
$’000
Fair value measurements at the end of the reporting period using

Quoted prices Significant
in active observable
markets for inputs other Significant
identical than quoted unobservable
instruments prices inputs Total
(Level 1) (Level 2) (Level 3)

Assets measured at fair value
Financial assets:
Equity securities at fair value through profit or
loss (Note 22)
Quoted equity securities 3,258 — — 3,258
Equity securities at FVOCI (Note 22)
Equity securities
Unquoted equity securities - — 839 839
Debt securities
Unquoted debt securities - - 1,563 1,563
Derivatives (Note 26)
Forward currency contracts - 150 - 150
Interest rate swap - 20 - 20
Financial assets as at 31 December 2018 3,258 170 2,402 5,830
Non-financial assets: 
Investment properties 
Commercial - - 2,831 2,831
Residential - 1,814 - 1,814
Property, plant and equipment 
Freehold land - - 11,874 11,874
Buildings - - 3,291 3,291
Disposal group classified as held for sale* - - 199 199
Non-financial assets as at 31 December 2018 - 1,814 18,195 20,009
Liabilities measured at fair value 

Financial liabilities
Derivatives (Note 26)
Forward currency contracts - (22) - (22)
Contingent consideration for business
combination (Note 32) - - (685) (685)
Financial liabilities as at 31 December 2018 - (22) (685) (707)
*Disposal group classified as held for sale with a carrying amount of $649,000 were written
down to their fair value of $219,000, less costs to sell of $20,000 (or $199,000), resulting
in a net loss of $450,000, which was included in the profit or loss for the period.


b) Assets and liabilities measured at fair value  (continued)
Group
IFRS 13.93.a and
31 December 2017
b
$’000


Financial assets:
Held for trading financial assets (Note 22)
Available-for-sale financial assets (Note 22)
Equity securities
Quoted equity securities 848 — — 848
Unquoted equity securities — — 28 28
Debt securities
Unquoted debt securities - - 980 980
Derivatives
Financial assets as at 31 December 2017 2,108 105 1,008 3,221
Commercial - - 2,380 2,380
Freehold land - - 10,726 10,726
Buildings - - 3,574 3,574
Non-financial assets as at 31 December 2017 - 1,575 16,680 18,255
IFRS 13.93.d


b) Assets and liabilities measured at fair value  (continued)
Group
IFRS 13.93.a and
1 January 2017
b
$’000


Financial assets:
Held for trading financial assets (Note 22)
Available-for-sale financial assets (Note 22)
Equity securities
Unquoted equity securities — — 40 40
Debt securities
Unquoted debt securities - - 1,026 1,026
Derivatives
Financial assets as at 1 January 2017 2,464 95 1,066 3,625
Commercial - - 2,280 2,280
Freehold land - - 7,468 7,468
Buildings - - 1,075 1,075
Non-financial assets as at 1 January 2017 - 1,545 10,823 12,368
c) Level 2 fair value measurements 

The following is a description of the valuation techniques and inputs used in the fair IFRS 13.93.d
value measurement for assets and liabilities that are categorised within Level 2 of the
fair value hierarchy:
Derivatives
Forward currency contracts and interest rate swap contracts are valued using a
valuation technique with market observable inputs. The most frequently applied
valuation techniques include forward pricing and swap models, using present value
calculations. The models incorporate various inputs including the credit quality of
counterparties, foreign exchange spot and forward rates, interest rate curves and
forward rate curves.
Residential investment properties
The valuation of residential investment properties are based on comparable market
transactions that consider sales of similar properties that have been transacted in the
open market.
IFRS 13.93.d


d) Level 3 fair value measurements

i) Information about significant unobservable inputs used in Level 3 fair value
measurements IFRS 13.93.d
The following table shows the information about fair value measurements using
significant unobservable inputs (Level 3)
Description Fair value Valuation Unobservable inputs Range (weighted

as at 31 techniques average)
December
2018
Recurring fair value
measurements
At FVOCI
Unquoted equity 839 Discounted Cost of equity 6% to 11% (7.3%)
securities cash flow
Dividend yield 3% to 7.5% (4.6%)
Discount for lack of 5% to 20% (4.6%)
marketability
Unquoted debt 1,563 Discounted Probability of default 5% to 50% (10%)
Loss severity 40% to 100% (60%)
Contingent (685) Discounted Probability of meeting
consideration for cash flow contractual earnings 20% to 100% (60%)
business combination target
Own credit risk 6% to 10% (8%)

Commercial 2,831 Market Yield adjustments based
comparable on management’s 10% to 25% (13%)
approach assumptions*
Property, plant and

equipment
Freehold land 11,874 Market Yield adjustments based 15% to 30% (20%)
comparable on management’s
Buildings 3,291 Market Yield adjustments based 10% to 20% (15%)

Non-recurring fair value

measurements
Disposal group 199 Discounted Weighted average cost of 6% to 12% (10.1%)
classified as held for cash flow capital
sale
Long-term revenue growth 3% to 5.5% (4.2%)
rate
Long-term pre-tax 7.5% to 13% (9.2%)
operating margin
Discount for lack of 5% to 20% (10%)

marketability
*The yield adjustments are made for any difference in the nature, location or condition of
the specific property.


d) Level 3 fair value measurements (continued)

i) Information about significant unobservable inputs used in Level 3 fair value IFRS 13.93.d
measurements (continued)
as at 31 techniques average)
December
2017
measurements
Available-for-sale
financial assets:
marketability
Unquoted debt 980 Discounted Probability of default 5% to 50% (10%)
Commercial 2,380 Market Yield adjustments based 10% to 25% (13%)
Property, plant and

equipment




measurements (continued) IFRS 13.93.d

as at techniques average)
1 January
2017
measurements
Available-for-sale
financial assets:
marketability
Unquoted debt 1,026 Discounted Probability of default 5% to 50% (10%)
Commercial 2,280 Market Yield adjustments based 10% to 25% (13%)
Property, plant and

equipment

For unquoted equity securities, a significant increase (decrease) in the expected
dividend yield would result in a significantly higher (lower) fair value measurement. A
significant increase (decrease) in discount for lack of marketability would result in a
significantly lower (higher) fair value measurement. A change in assumption used for
dividend yield may warrant a directionally opposite change in assumption for discount
for lack of marketability.
For unquoted debt securities, significant increases (decreases) in prepayment rates,
probability of default and loss severity in the event of default would result in a
significant lower (higher) fair value measurement. Generally, a change in the
assumption used for the probability of default is accompanied by a directionally
similar change in the assumption used for the loss severity and a directionally
opposite change in the assumption used for prepayment rates.
For contingent consideration, a significant increase (decrease) in the probability of
meeting the contractual earnings target would result in a significantly higher (lower)
fair value measurement.
For freehold land and buildings and commercial investment properties, a significant
increase (decrease) in yield adjustments based on management’s assumptions would
result in a significantly lower (higher) fair value measurement.



IFRS 13.93.h.ii
measurements (continued)
The following table shows the impact on the Level 3 fair value measurement of assets
and liabilities that are sensitive to changes in unobservable inputs that reflect
reasonably possible alternative assumptions. The positive and negative effects are
approximately the same.
31 December 2018
Effect of reasonably possible
alternative assumptions
Carrying Profit or loss Other
amount comprehensive
income
$’000 $’000 $’000
Recurring fair value measurements
Financial assets at FVOCI:
Unquoted equity securities 839 - 115
Unquoted debt securities 1,563 - 56
Contingent consideration for business
combination (685) 35 -
31 December 2017
Effect of reasonably possible
alternative assumptions
Carrying Profit or loss Other
amount comprehensive
income
$’000 $’000 $’000
Recurring fair value measurements
Available-for-sale financial assets:
Unquoted equity securities 28 - 10
Unquoted debt securities 980 - 18
In order to determine the effect of the above reasonably possible alternative

assumptions, the Group adjusted the following key unobservable inputs used in the
fair value measurement:
- For unquoted equity securities, the Group adjusted the discount for lack of
marketability by increasing and decreasing the assumptions by 5% to 8% (2017:
6% to 9%) depending on the individual characteristics of the instrument.
- For unquoted debt securities, the Group adjusted the probability of default and
loss severity assumptions used to calculate the credit valuation adjustment. The
adjustments made were to increase and decrease the assumptions by 6% (2017:
5%), which is within the range based on the Group’s internal credit risk assessment
for the counterparties.
- For contingent consideration for business combination, the Group adjusted the
probability of meeting the contractual earnings target by increasing and
decreasing assumption by 10% (2017: 10%).



IFRS 13.93.e
ii) Movements in Level 3 assets and liabilities measured at fair value 
The following table presents the reconciliation for all assets and liabilities measured
at fair value based on significant unobservable inputs (Level 3):
Group
2018
$’000
Fair value measurements using significant unobservable inputs (Level 3)
Financial assets at Investment Contingent Total

FVOCI properties consideration
Unquoted Unquoted Commercial
equity debt
securities securities
Opening balance
1 January 2018 628 980 2,380 - 3,988
Total gains or losses for
the period
Included in profit or loss - (65) 350 (235) 50
Included in other
comprehensive income 180 80 - - 260
Purchases, issues, sales
and settlements
Purchases 140 598 400 - 1,138
Sales (109) (30) - - (139)
Transfer from/(to)
investment properties - - (300) - (300)
IFRS 13.93.e.i
Exchange differences - - 1 - 1
Arising from acquisition of
subsidiary - - - (450) (450)
IFRS 13.93.e.ii
Closing balance 839 1,563 2,831 (685) 4,548
Group IFRS 13.93.e.iii

2017
$’000
IFRS 13.93.e.iv
Available-for-sale financial assets Investment Total
properties
Unquoted equity Unquoted Commercial
securities debt
securities
Opening balance 40 1,026 2,280 3,346

Total gains or losses for
the period
Included in profit or loss - - 100 100
Included in other
comprehensive income 15 9 - 24
Purchases, issues, sales
and settlements
Purchases 16 15 - 31
Sales (43) (70) - (113)
Closing balance 28 980 2,380 3,388



(continued)
Group
2018
$’000
Financial assets at FVOCI Property, plant and Investment Contingent Total
equipment properties consideration
Unquoted Unquoted Freehold Buildings Commercial
equity debt land
Total gains and IFRS 13.93.e.i

losses for the period
included in
Profit or loss:
- Other income
Net gain
from fair
value
adjustment
of
investment
properties (i) - - - - 350 - 350
- Other expenses
Fair value
adjustment
of contingent
consideration
of business
combination
(ii)
- - - - - (235) (235)
Other IFRS 13.93.e.ii

comprehensive
income:
- Net fair value
gains on debt
instruments at
FVOCI - 44 - - - - 44
- Net fair value
gains on equity
instruments at
FVOCI 130 - - - - - 130
- Net surplus on
revaluation of
land and
buildings - - 1,001 249 - - 1,250
(i) Relates to net gain from fair value adjustment of investment properties held as at 31 December
2018.
(ii) Relates to unrealised loss from fair value adjustment of contingent consideration for business
combination as at 31 December 2018.



(continued)
Group
2017
$’000
Available-for-sale Property, plant and Investment Total
financial assets equipment properties
Unquoted Unquoted Freehold Buildings Commercial
equity debt land
Total gains and IFRS 13.93.e.i
losses for the period
included in
Profit or loss:
- Other income
Net gain from
fair value
adjustment of
investment
properties (i) - - - - 100 100
Other IFRS 13.93.e.ii

comprehensive
income:
- Net gain on fair
value changes
of available-for-
sale financial
assets 15 9 - - - 24
- Net surplus on
revaluation of
land and
buildings - - 1,784 620 - 2,404
(i) Relates to net gain from fair value adjustment of investment properties held as at 31 December
2017.



iii) Valuation policies and procedures  IFRS 13.93.g
The Group’s Chief Financial Officer (CFO), who is assisted by the Head of Treasury
and senior controller (collectively referred to as the “CFO office”) oversees the
Group’s financial reporting valuation process and is responsible for setting and
documenting the Group’s valuation policies and procedures. In this regard, the CFO
office reports to the Group’s Audit Committee.
For all significant financial reporting valuations using valuation models and significant
unobservable inputs, it is the Group’s policy to engage external valuation experts who
possess the relevant credentials and knowledge on the subject of valuation, valuation
methodologies and SFRS(I) 13 fair value measurement guidance to perform the
valuation.
For valuations performed by external valuation experts, the appropriateness of the
valuation methodologies and assumptions adopted are reviewed along with the
appropriateness and reliability of the inputs (including those developed internally by
the Group) used in the valuations.
In selecting the appropriate valuation models and inputs to be adopted for each
valuation that uses significant non-observable inputs, external valuation experts are
requested to calibrate the valuation models and inputs to actual market transactions
(which may include transactions entered into by the Group with third parties as
appropriate) that are relevant to the valuation if such information are reasonably
available. For valuations that are sensitive to the unobservable inputs used, external
valuation experts are required, to the extent practicable to use a minimum of two
valuation approaches to allow for cross-checks.
Significant changes in fair value measurements from period to period are evaluated
for reasonableness. Key drivers of the changes are identified and assessed for
reasonableness against relevant information from independent sources, or internal
sources if necessary and appropriate.
The CFO office documents and reports its analysis and results of the external
valuations to the Audit Committee on a quarterly basis. The Audit Committee
performs a high-level independent review of the valuation process and results and
recommends if any revisions need to be made before presenting the results to the
Board of Directors for approval.


e) Assets and liabilities not measured at fair value, for which fair value is disclosed
IFRS 13.97

IFRS 7.25
IFRS 7.26
The following table shows an analysis of the Group’s assets and liabilities not measured
at fair value, for which fair value is disclosed:
Group
31 December 2018
$’000
Quoted
prices in
active Significant
markets observable
for inputs other Significant
identical than quoted unobservable Fair value Carrying
assets prices inputs Total amount
Assets
Government bonds 675 - - 675 660
Investment in associates 10,600 - - 10,600 10,595
Staff loans (non-current) - - 60 60 63
Liabilities:
Deferred cash settlement - - (205) (205) (200)
Financial guarantees - - (29) (29) (26)
Loans and borrowings (non-
current)
- Obligations under finance
leases - - (769) (769) (720)
- Fixed rate bank loans and
bonds - - (5,183) (5,183) (5,120)
- Convertible redeemable
preference shares - - (509) (509) (450)
Company
Assets
Amounts and loans due from
subsidiaries - 13,432 - 13,432 13,972
Amount due from associates - 1,168 - 1,168 1,230
Amounts due from a fellow
subsidiary - 1,457 - 1,457 1,500
Liabilities:
current)
bonds - - (3,162) (3,162) (3,100)


IFRS 13.97
 (continued) IFRS 7.25
Group IFRS 7.26
31 December 2017
$’000
Quoted
prices in
active Significant
markets observable
Assets
Equity securities, at cost - - - -* 600
Liabilities:
current)
lease - - (169) (169) (160)
bonds - - (5,862) (5,862) (5,830)
Company
Assets
subsidiaries - 14,161 - 14,161 14,598
subsidiary - 1,443 - 1,443 1,515
Liabilities:
current)
bonds - - (3,060) (3,060) (3,000)


IFRS 13.97
 (continued) IFRS 7.25
Group IFRS 7.26
1 January 2017
$’000
Quoted
prices in
active Significant
markets observable
Assets
Equity securities, at cost - - - -* 600
Liabilities:
current)
lease - - (201) (201) (190)
bonds - - (7,682) (7,682) (7,400)
Company
Assets
subsidiaries - 13,702 - 13,702 13,910
subsidiary - 1,433 - 1,433 1,515
Liabilities:
current)
bonds - - (3,460) (3,460) (3,400)
Determination of fair value

Amounts and loans due from subsidiaries, staff loans, deferred cash, fixed rate bank loans
and bonds, and convertible redeemable preference shares
IFRS 13.97
The fair values as disclosed in the table above are estimated by discounting expected
IFRS 13.93.d
future cash flows at market incremental lending rate for similar types of lending,
borrowing or leasing arrangements at the end of the reporting period.


Commentary:
 Disclosures in tabular format

An entity shall present the quantitative disclosures required by IFRS 13 in a tabular format IFRS 13.99
unless another format is more appropriate.
Classes of assets and liabilities

An entity shall determine appropriate classes of assets and liabilities on the basis of the IFRS 13.94
following:
(a) The nature, characteristics and risks of the asset or liability; and
(b) The level of the fair value hierarchy within which the fair value measurement is
categorised.
The number of classes may need to be greater for fair value measurements categorised
within Level 3 of the fair value hierarchy because those measurements have a greater
degree of uncertainty and subjectivity. Determining appropriate classes of assets and
liabilities for which disclosures about fair value measurements should be provided
requires judgement. A class of assets and liabilities will often require greater
disaggregation than the line items presented in the balance sheet. If another IFRS
specifies the class for an asset or a liability, an entity may use that class in providing the
disclosures required in IFRS 13 if that class meets the requirements in this paragraph.
 In this illustration, the current use of the non-financial assets does not differ from their highest IFRS 13.93.i
and best use. If for recurring and non-recurring fair value measurements, the highest and best
use of a non-financial asset differs from its current use, an entity shall disclose the fact and
why the non-financial asset is being used in a manner that differs from its highest and best use.
 In this illustration, the Group’s commercial properties are categorised within Level 3 of the fair
value hierarchy as the properties’ fair values are determined based on comparable market IFRS 13.98
transactions adjusted for significant unobservable inputs such as yield adjustments relating to
nature, location and condition of the specific property.
In this illustration, the Group’s residential investment properties are categorised within Level 2
of the fair value hierarchy as the properties’ fair values are determined solely based on
observable inputs other than quoted prices.
 In this illustration, the Group does not have any liability measured at fair value and issued with
an inseparable third-party credit enhancement.
For a liability measured at fair value and issued with an inseparable third-party credit
enhancement, an issuer shall disclose the existence of that credit enhancement and whether it
is reflected in the fair value measurement of the liability.


 In this illustration, there has been no change in valuation technique for recurring and non- IFRS 13.93.d
recurring fair value measurements categorised within Level 2 and Level 3 of the fair value
hierarchy. If there has been a change in valuation technique (e.g. changing from a market
approach to an income approach or use of an additional valuation technique), the entity shall
disclose that change and the reason(s) for making it.
 For recurring and non-recurring fair value measurements categorised within Level 3 of the fair
IFRS 13.93.g
value hierarchy, a description of valuation processes used by the entity (including, for
example, how an entity decides its valuation policies and procedures and analyses changes in
fair value measurements from period to period.
An entity might disclose the following:
(a) for the group within the entity that decides the entity’s valuation policies and IFRS 13.IE65
procedures:
i. its description;
ii. to whom that group reports; and
iii. the internal reporting procedures in place (e.g. whether and, if so, how pricing, risk
management or audit committees discuss and assess the fair value measurements.
(b) the frequency and methods for calibration, back testing and other testing procedures of
pricing models;
(c) the process for analysing changes in fair value measurements from period to period;
(d) how the entity determined that third-party information, such as broker quotes or pricing
services, used in the fair value measurement was developed in accordance with IFRS 13;
and
(e) the methods used to develop and substantiate the unobservable inputs used in a fair
value measurement.
It is important to note that the illustration on valuation policies and procedures for
recurring and non-recurring fair value measurements categorised within Level 3 of the
fair value hierarchy is based on certain assumed facts regarding circumstances
surrounding XYZ Holdings (Singapore) Limited. The valuation policies and procedures
of other entities may be different and disclosures would have to be customised in the
light of specific facts and circumstances applicable to the entity.
 In this illustration, investment properties are carried at fair value. For any investment
properties recorded at cost, IAS 40 requires disclosure about fair value. Please refer to
commentary no.2 of Note 2.8 Investment properties.
Where investment properties are carried at cost for which fair value are disclosed, IFRS 13.97 IFRS 13.97
requires the disclosures of
- the level of the fair value hierarchy within which the fair value measurements are IFRS 13.93.b
categorised in their entirety (Level 1, 2 or 3),
- a description of the valuation technique(s) and inputs used in the fair value measurement. IFRS 13.93.d
If there has been a change in valuation technique, the entity shall disclose the reason for
making it,
- the fact and why the non-financial asset is being used in a manner that differs from its IFRS 13.93.i
highest and best use if the highest and best use of a non-financial asset differs from its
current use


Fair value of financial assets and liabilities
 IFRS 7.25 requires the fair value of each class of financial assets and liabilities to be disclosed IFRS 7.25 and 29
in a way that permits it to be compared with its carrying amount. However, disclosures of fair
value are not required:
- When the carrying amount is a reasonable approximation of fair value (e.g., short-term
trade and other receivables and payables, and long-term loans that are re-priced to market
rate); or
- Lease liabilities
In this illustration, in addition to the above exemptions, the comparison between carrying
amount and fair value of financial assets or liabilities that are carried at fair value (e.g., held for
trading investments and derivatives) has not been disclosed as these assets are carried at fair
value.


 Transfers between fair value hierarchy

Transfers between Level 1 and Level 2
IFRS 13 requires disclosures of the amount of any transfers between Level 1 and Level 2 of IFRS 13.93.c
the fair value hierarchy for assets and liabilities held at the end of the reporting period that
are measured at fair value on a recurring basis and the reasons for those transfers. Transfers
into each level shall be disclosed and discussed separately from transfers out of each level.
In this illustration, there were no assets or liabilities transferred between Level 1 and Level 2.
Illustrative disclosure if an entity has transfers of assets or liabilities between Level 1 and
Level 2.
The following table shows transfers from Level 1 to Level 2 of the fair value hierarchy
for assets and liabilities which are recorded at fair value.
Group
2017
$’000
Financial assets held-for-trading
- Quoted equity securities XXX
Financial investments available-for-sale
- Other debt securities XXX
The above financial assets were transferred from Level 1 to Level 2 as they were
delisted from the stock exchange and therefore ceased to be actively traded during the
year and fair values were consequently measured using valuation techniques and using
observable market inputs.
Transfers into or out of Level 3

IFRS 13 requires disclosures of the amount of any transfers into or out of Level 3 of the fair IFRS 13.93.e.iv
value hierarchy, the reasons for those transfers and the entity’s policy for determining when
transfers between levels are deemed to have occurred. Transfers into Level 3 shall be
disclosed and discussed separately from transfers out of Level 3.
In this illustration, there were no assets or liabilities transferred from Level 1 and Level 2 to
Level 3.
Illustrative disclosure if there were transfers of assets or liabilities into Level 3.
During the financial year ended 31 December 2018, the Group transferred certain
financial instruments from Level 2 to Level 3 of the fair value hierarchy. The carrying
amount of the total financial assets transferred was $XXX.
The reason for the transfers from Level 2 to Level 3 is that inputs to the valuation
models for the other debt securities ceased to be observable. Prior to transfer, the fair
value of the instruments was determined using observable market transactions or
binding broker quotes for the same or similar instruments. Since the transfer, these
instruments have been valued using valuation models incorporating significant non
market-observable inputs.
Illustrative disclosure if there were transfers of assets or liabilities out of Level 3.
The Group transferred an unquoted equity security from Level 3 to Level 1 of the fair
value hierarchy. The carrying amount of the total financial assets transferred was
$XXX.
The security was transferred from Level 3 into Level 1 as it was listed on the stock
exchange during the financial year. Prior to the transfer, the fair value of the security
was determined using valuation model incorporating significant non market-observable
inputs. Since the transfer, the fair value of the security is determined based on market
price quoted in the stock exchange.


40. Financial risk management objectives and policies  IFRS 7.7 and 31
The Group and the Company are exposed to financial risks arising from its operations and
IFRS 7.31-33 and
the use of financial instruments. The key financial risks include credit risk, liquidity risk, IG15
interest rate risk, foreign currency risk and market price risk. The board of directors
reviews and agrees on policies and procedures for the management of these risks, which
are executed by the Chief Financial Officer, Head of Treasury and Head of Credit Control.
The Audit Committee provides independent oversight to the effectiveness of the risk
management process. It is, and has been, throughout the current and previous financial
year, the Group’s policy that no trading in derivatives for speculative purposes shall be
undertaken. 
The following sections provide details regarding the Group’s and Company’s exposure to
the above-mentioned financial risks and the objectives, policies and processes for the
management of these risks.
Commentary:
 IFRS 7 requires an entity to disclose qualitative and quantitative information that enables IFRS 7.31-33
users of its financial statements to evaluate the nature and extent of risks arising from
financial instruments to which the entity is exposed at the reporting date, including the
entity’s policies and processes for accepting, measuring, monitoring and controlling such
risks. In addition, an entity is required to disclose any change in the qualitative information
from the previous period and explain the reasons for the change.
The disclosures in response to IFRS 7 illustrated in this note are based on assumed
circumstances of XYZ Holdings (Singapore) Limited and may not be applicable or
relevant to other entities. Each entity should customise the information disclosed
according to the specific circumstances, financial risk exposures, and risk
management policies and procedures relevant to the entity.
Alternative approaches of disclosure
 Decentralised disclosures
In this illustration, most of the information regarding the nature and extent of risks arising
from financial instruments required by IFRS 7.31-42, has been disclosed in one centralised
note. Alternatively, an entity may disclose such information in the respective balance sheet
item notes where appropriate.
 Incorporating disclosures by cross reference

The disclosures of information regarding the nature and extent of risks arising from IFRS 7.AGB6
financial instruments may instead be incorporated in the financial statements by cross-
reference from the financial statements to some other statement, such as management
commentary or risk report, that is available to users of the financial statements on the
same terms as the financial statements and at the same time. Without the information
incorporated by cross-reference, the financial statements are incomplete.
 In this illustration, there’s no change to the Group’s exposure to risk arising from financial
IFRS 7.33.c
instruments. IFRS 7 requires disclosures of changes from previous period for
(a) exposures to risk and how they arise; (or)
(b) its objective, policies and processes for managing the risk and the methods used to
measure the risks from the previous period.


40. Financial risk management objectives and policies (continued)

Alternative simplified disclosures IFRS 7.31,33 and
IG17
 In this illustration, the entity is exposed to all credit risk, liquidity risk, interest rate risk, foreign
currency risk and market price risk.
Example illustrative financial risk management objectives and policies for a non-complex trading
entity which is exposed mainly to credit risk and liquidity risk.
The Group and the Company is exposed to financial risks arising from its operations and the
use of financial instruments. The key financial risks include credit risk and liquidity risk.
The following sections provide details regarding the Group and Company's exposure to the
above-mentioned financial risks and the objectives, policies and processes for the
management of these risks.
a) Credit risk 

Credit risk is the risk of loss that may arise on outstanding financial instruments should IFRS 7.33.a-b
IFRS 7.IG15
a counterparty default on its obligations. The Group’s and the Company’s exposure to
credit risk arises primarily from trade and other receivables. For other financial assets
(including investment securities, cash and short-term deposits and derivatives), the
Group and the Company minimise credit risk by dealing exclusively with high credit
rating counterparties.
The Group’s objective is to seek continual revenue growth while minimising losses
incurred due to increased credit risk exposure. The Group trades only with recognised
and creditworthy third parties. It is the Group’s policy that all customers who wish to
trade on credit terms are subject to credit verification procedures. In addition,
receivable balances are monitored on an ongoing basis with the result that the Group’s
exposure to bad debts is not significant. For transactions that do not occur in the
country of the relevant operating unit, the Group does not offer credit terms without
the approval of the Head of Credit Control.
The Group considers the probability of default upon initial recognition of asset and
whether there has been a significant increase in credit risk on an ongoing basis
throughout each reporting period.
The Group has determined the default event on a financial asset to be when the IFRS 7.35F.b
counterparty fails to make contractual payments, within 60 days when they fall due,
which are derived based on the Group’s historical information.
The Group considers “low risk” to be an investment grade credit rating with at least IFRS 7.35F.a.i
IFRS 7.35F.a.ii
one major rating agency for those investments with credit rating. To assess whether
there is a significant increase in credit risk, the company compares the risk of a default
occurring on the asset as at reporting date with the risk of default as at the date of
initial recognition. The Group considers available reasonable and supportive
forwarding-looking information which includes the following indicators:


a) Credit risk  (continued)

- Internal credit rating IFRS 7.35F.a.ii
- External credit rating

- Actual or expected significant adverse changes in business, financial or economic
conditions that are expected to cause a significant change to the borrower’s ability
to meet its obligations
- Actual or expected significant changes in the operating results of the borrower
- Significant increases in credit risk on other financial instruments of the same
IFRS 7.35F.d
borrower
- Significant changes in the value of the collateral supporting the obligation or in the
quality of third-party guarantees or credit enhancements
- Significant changes in the expected performance and behaviour of the borrower,
including changes in the payment status of borrowers in the group and changes in
the operating results of the borrower.
Regardless of the analysis above, a significant increase in credit risk is presumed if a
debtor is more than 30 days past due in making contractual payment. 
IFRS 7.35F.e
The Group determined that its financial assets are credit-impaired when:
- There is significant difficulty of the issuer or the borrower
- A breach of contract, such as a default or past due event
- It is becoming probable that the borrower will enter bankruptcy or other financial
reorganisation
- There is a disappearance of an active market for that financial asset because of
financial difficulty
The Group categorises a loan or receivable for potential write-off when a debtor fails to
make contractual payments more than 120 days past due. Financial assets are written
off when there is no reasonable expectation of recovery, such as a debtor failing to
engage in a repayment plan with the Group. Where loans and receivables have been
written off, the company continues to engage enforcement activity to attempt to
recover the receivable due. Where recoveries are made, these are recognised in profit
or loss.
The following are credit risk management practices and quantitative and qualitative
information about amounts arising from expected credit losses for each class of
financial assets.



(i) Debt securities at amortised cost, debt securities at fair value through other IFRS 7.35F.a.ii
comprehensive income and loans at amortised cost (continued)
The Group uses three categories of internal credit risk ratings for debt instruments
and loans which reflect their credit risk and how the loss provision is determined for
each of those categories. These internal credit risk ratings are determined through
incorporating both qualitative and quantitative information that builds on
information from external credit rating companies, such as Standard and Poor,
Moody’s and Fitch, supplemented with information specific to the counterparty and
other external information that could affect the counterparty’s behaviour.
The Group compute expected credit loss for this group of financial assets using the IFRS 7.35F.d
probability of default approach. In calculating the expected credit loss rates, the
Group considers implied probability of default from external rating agencies where
available and historical loss rates for each category of counterparty, and adjusts for
forward looking macroeconomic data such as GDP growth and central bank base
rates.
A summary of the Group’s internal grading category in the computation of the
Group’s expected credit loss model for the debt instruments and loans is as follows:
Category Definition of category Basis for Basis for
recognition of calculating IFRS 7.35F.e
expected credit interest revenue
loss provision
Grade I Customers have a low risk 12-month expected Gross carrying
of default and a strong credit losses amount
capacity to meet
contractual cash flows.
Grade II Loans for which there is a Lifetime expected Gross carrying

significant increase in credit losses amount
credit risk; as significant
increase in credit risk is
presumed if interest
and/or principal
repayments are 30 days
past due.
Grade III Interest and/or principal Lifetime expected Amortised cost of

repayments are 60 days credit losses carrying amount
past due. (net of credit
allowance)
There are no significant changes to estimation techniques or assumptions made

during the reporting period.



(i) Debt securities at amortised cost, debt securities at fair value through other
comprehensive income and loans (continued)
The loss allowance provision for debt securities at amortised cost, debt securities at fair IFRS 7.35H
value through other comprehensive income and loans as at 31 December 2018
reconciles to the opening loss allowance for that provision as follows:
Group Company
Debt at Debt Loans at Loans at
amortised securities amortised amortised cost
cost at FVOCI cost
$’000 $’000 $’000 $’000
As at 1 January 2018 10 50 37 103
Loss allowance measured at:
12- month ECL 5 - 25 25
Lifetime ECL
- Credit risk has increased significantly
since initial recognition - 65 - 50
As at 31 December 2018 15 115 62 178
The gross carrying amount of debt securities at amortised cost, debt securities at IFRS 7.35K.a
fair value through other comprehensive income and loans, without taking into
account of any collaterals held or other credit enhancements which represents the
maximum exposure to loss, is as follows:
Group 31 December
2018
$’000
12-month ECL Debt securities at amortised cost 675
12-month ECL Loans at amortised cost 2,792
Lifetime ECL Debt securities at FVOCI 1,678
Total 4,953
The gross carrying amount of trade receivables and contract assets of the Group
are disclosed in Note 21.
The gross carrying amount of loans of the Company as at 31 December 2018,
without taking into account of any collaterals held or other credit enhancements
which represents the maximum exposure to loss, is $17,269,000.



(ii) Trade receivables and contract assets
The Group provides for lifetime expected credit losses for all trade receivables, and
contract assets using a provision matrix. The provision rates are determined based
on the Group’s historical observed default rates analysed in accordance to days
past due by grouping of customers based on geographical region. The loss
allowance provision as at 31 December 2018 is determined as follows, the
expected credit losses below also incorporate forward looking information such as
forecast of economic conditions where the gross domestic product will deteriorate
over the next year, leading to an increased number of defaults.
Summarised below is the information about the credit risk exposure on the Group’s
trade receivables and contract assets using provision matrix, grouped by
geographical region:
Singapore:
31 December Contract Current More More More Total

2018 assets than 30 than 60 than 90
days days days
past due past due past due
Gross carrying 1,680 5,218 1,229 1,522 1,480 14,649

amount
Loss allowance 10 20 45 115 160 350
provision
Other geographical areas:
31 December Contract Current More More More Total

2018 assets than 30 than 60 than 90
days days days
past due past due past due
Gross carrying 2,071 9,743 1,697 1,818 1,469 11,675

amount
Loss allowance 30 12 42 135 164 383
provision
Information regarding loss allowance movement of trade receivables and contract

assets are disclosed in Note 21.
During the financial year, the Group wrote-off $135,000 of trade receivables which
are more than 120 days past due as the Group does not expect to receive future
cash flows from and there are no recoveries from collection of cash flows
previously written off.



(iii) Financial guarantees
The Group compute expected credit loss for financial guarantees using the
probability of default approach. In determining ECL for financial guarantees, the
Group consider events such as breach of loan covenants, default on instalment
payments and determined that significant increase in credit risk occur when there is
changes in the risk that the specified debtor will default on the contract.
In calculating the expected credit loss rates, the Group considers implied
probability of default from external rating agencies where available and historical
loss rates for each category of counterparty, and adjusts for forward looking
macroeconomic data such as GDP growth and central bank base rates.
Group Company
$’000 $’000
8 70
As at 1 January 2018
Loss allowance measured at:
- 12- month ECL 2 10
New financial guarantee originated 16 -
As at 31 December 2018 26 80
Excessive risk concentration

Concentrations arise when a number of counterparties are engaged in similar business
activities, or activities in the same geographical region, or have economic features that
would cause their ability to meet contractual obligations to be similarly affected by
changes in economic, political or other conditions. Concentrations indicate the relative
sensitivity of the Group’s performance to developments affecting a particular industry.
In order to avoid excessive concentrations of risk, the Group’s policies and procedures
include specific guidelines to focus on maintaining a diversified portfolio. Identified
concentrations of credit risks are controlled and managed accordingly. Selective
hedging is used within the Group to manage risk concentrations at both the relationship
and industry levels. The Group does not apply hedge accounting.
Exposure to credit risk 
At the end of the reporting period, the Group’s and the Company’s maximum exposure
to credit risk is represented by:
- A nominal amount of $565,000 (31 December 2017: $255,000, 1 January 2017:
$253,000) relating to a corporate guarantee provided by the Group to the banks
on associates’ and joint venture’s loans
- A nominal amount of $5,400,000 (31 December 2017: $5,400,000, 1 January
2017: $5,400,000) relating to a corporate guarantee provided by the Company to
a bank on a subsidiary’s bank loan
Information regarding credit enhancements for trade and other receivables is disclosed
in Note 21.



Credit risk concentration profile 
The Group determines concentrations of credit risk by monitoring the country and IFRS 7.34.a and
industry sector profile  of its trade receivables on an ongoing basis. The credit risk AGB8
concentration profile of the Group’s trade receivables at the end of the reporting
period is as follows:
Group

$’000 % of $’000 % of $’000 % of
By country: total total total
Singapore 13,701 57% 13,100 54% 11,523 54%

People’s Republic of China 4,389 18% 4,995 21% 4,122 19%
Malaysia 3,167 13% 3,442 13% 3,212 15%
Vietnam 1,781 7% 1,619 7% 1,507 7%
Other countries 1,138 5% 1,185 5% 1,083 5%
24,176 100% 24,341 100% 21,447 100%
By industry sectors:
Electronics 10,021 41% 9,455 39% 9,007 42%
Property 6,719 29% 7,883 32% 6,921 32%
Fire prevention and
installation 6,590 27% 6,180 25% 4,718 22%
Others 846 3%% 823 4% 801 4%

24,176 100% 24,341 100% 21,447 200%
At the end of the reporting period, approximately:

- 21% (31 December 2017: 19%, 1 January 2017: 20%) of the Group’s trade IFRS 7.34.a,
receivables were due from 5 major customers who are multi-industry 34.c and AGB8
conglomerates located in Singapore.
- 11% (31 December 2017: 9%, 1 January 2017: 10%) of the Group’s trade and
other receivables were due from related parties while almost all of the Company’s
receivables were balances with related parties.
Financial assets that are neither past due nor impaired
- Trade and other receivables that are neither past due nor impaired are with
creditworthy debtors with good payment record with the Group. Cash and short-
term deposits, investment securities and derivatives that are neither past due nor
impaired are placed with or entered into with reputable financial institutions or
companies with high credit ratings and no history of default.
Financial assets that are either past due or impaired
- Information regarding financial assets that are either past due or impaired is
disclosed in Note 21 (Trade and other receivables).



Commentary:
 The credit risk disclosures shall enable users of financial statements to understand the
effect of credit risk on the amount, timing and uncertainty of future cash flows. To achieve
this objective, credit risk disclosures shall provide:
(a) Information about an entity’s credit risk management practices and how they relate to
the recognition and measurement of expected credit losses, including the methods,
assumptions and information used to measure expected credit losses
(b) The quantitative and qualitative information that allows users of financial statements
to evaluate the amounts in the financial statements arising from expected credit
losses, including changes in the amount of expected credit losses and the reasons for
those changes; and
(c) Information about an entity’s credit risk exposure (i.e. the credit risk inherent in an
entity’s financial assets and commitments to extend credit) including significant credit
risk concentrations.
An entity need not duplicate information that is already presented elsewhere, provided that
the information is incorporated by cross-reference from the financial statements to other
statements, such as a management commentary or risk report that is available to users of
the financial statements on the same terms as the financial statements and at the same
time. Without the information incorporated by cross-reference, the financial statements are
incomplete.
For disclosures requirement above, an entity shall consider how much detail to disclose, how
much emphasis to place on different aspects of the disclosure requirements, the appropriate
level of aggregation or disaggregation, and whether users of the financial statements need
additional explanations to evaluate the quantitative information disclosed.
 In this illustration, the Group does not have modification of contractual cash flows for its
financial assets. If an entity has modification of contractual cash flows for its financial
assets, an entity shall disclose how it has applied the requirements in para 5.5.12 of IFRS 9,
including how an entity:
(i) Determines whether the credit risk on a financial asset that has been modified while the
loss allowance was measured at an amount equal to lifetime expected credit losses, has
improved to the extent that the loss allowance reverts to being measured at an amount
equal to 12-month expected credit losses in accordance with para 5.5.5 of IFRS 9; and
(ii) Monitors the extent to which the loss allowance on financial assets meeting the criteria
in (i) is subsequently remeasured at an amount equal to lifetime expected credit losses
in accordance with para 5.5.3 of IFRS 9.
In addition, to enable users of financial statements to understand the nature and effect of
modifications of contractual cash flows on financial assets that have not resulted in
derecognition and the effect of such modifications on the measurement of expected credit
losses; an entity shall disclose
(a) The amortised cost before the modification and the net modification gain or loss
recognised for financial assets for which the contractual cash flows have been modified
during the reporting period while they had a loss allowance measured at an amount
equal to lifetime expected credit losses; and
(b) The gross carrying amount at the end of the reporting period of financial assets that
have been modified since initial recognition at a time when the loss allowance was
measured at an amount equal to lifetime expected credit losses and for which the loss
allowance has changed during the reporting period to an amount equal to 12-month
expected credit losses
The entity shall also provide an explanation of how significant changes in the gross carrying
amount of financial instruments during the period contributed to changes in the loss
allowance for modification of contractual cash flows on financial assets that do not result in
a derecognition of those financial assets in accordance with IFRS 9.



a) Credit risk  (continued)
Commentary:
 In this illustration, the Group does not have financial assets that are credit-impaired at the
reporting date (but that are not purchased or originated credit impaired and financial
assets that are purchased on originated credit-impaired.
If an entity has such financial assets, the entity shall disclose:
(a) The changes in the loss allowance and the reasons for those changes, provide by class IFRS 7.35H
of financial instrument, a reconciliation from the opening balance to the closing
balance of the loss allowance, in a table, showing separately the changes during the
period;
(b) the total amount of undiscounted expected credit losses at initial recognition on IFRS 7.35H.c
financial assets initially recognised during the reporting period; and
(c) The gross carrying amount by credit risk rating grades. IFRS 7.35M.c
 In this illustration, the Group does not have any collateral and other credit enhancement
which affects the amounts arising from expected credit losses.
If an entity has any collateral and other credit enhancement which affects the amounts
arising from expected credit losses, the entity shall disclose by class of financial
instrument:
(a) A narrative description of collateral held as security and other credit enhancements, IFRS 7.35K.b
including:
(i) A description of the nature and quality of the collateral held
(ii) An explanation of any significant changes in the quality of that collateral or credit
enhancements as a result of deterioration or changes in the collateral policies of
the entity during the reporting period; and
(iii) Information about financial instruments for which an entity has not recognised a
loss allowance because of the collateral
(b) Quantitative information about the collateral held as security and other credit IFRS 7.35K.c
enhancements (for example, quantification of extent to which collateral and other
credit enhancements mitigate credit risk) for financial assets that are credit-impaired
at the reporting date.
 An entity shall disclose the contractual amount outstanding on financial assets that were IFRS 7.35L
written off during the reporting period and are still subject to enforcement activity.
 In this illustration, the Group has applied the presumption in paragraph 5.5.11 of IFRS 9
that there have been significant increases in credit risk since initial recognition when a
financial asset are more than 30 days past due.
If an entity has rebutted the presumption, the entity has to disclose how an entity IFRS 7.35F.a.ii
determine whether credit risk of financial instruments has increased significantly since
initial recognition.



Commentary:
Credit risk relating to financial assets or financial liabilities at fair value through profit or loss IFRS 7.9-11
 In this illustration, no financial instrument has been designated as financial assets or

financial liabilities at fair value through profit or loss. If an entity has designated a loan or
receivable or financial liability as at fair value through profit or loss, IFRS 7 requires further
disclosures regarding the maximum credit risk exposures of such receivables and the
amount by which any related credit derivatives or similar instruments mitigate that credit
risk exposure; changes in fair value during the period and cumulatively, of such loan or
receivable or financial liabilities that is attributable to changes in credit risk (including the
methods of determining such fair value changes) and of any related credit derivatives or
similar instruments; and the difference between the financial liability’s carrying amount and
the contractual repayment amount.
Disclosure of maximum exposure to credit risk

IFRS 7.36.a
 For financial instruments where the carrying amount best represents the maximum
exposure to credit risk, the disclosure of the maximum exposure to credit risk is not
required.
Quantitative disclosures
 IFRS 7 requires the disclosure of summary quantitative data about an entity’s exposure to IFRS 7.34.a
financial risk (e.g., credit risk, liquidity risk and market risk) that is based on the information
provided internally to key management personnel of the entity (as defined in IAS 24,
Related Party Disclosures), e.g., the board of directors or CEO. As such, the disclosures
would be defined by the actual information used by management in managing financial
risks, which may be different from those disclosed in this illustration.
IFRS 7.35 and IG20
In addition, if the above-mentioned quantitative data disclosed as at the end of the
reporting period are unrepresentative of the entity’s exposure to risk during the period, the
entity shall provide further information that is representative e.g., an entity might disclosed
the highest, lowest and average amount of risk to which it was exposed during the period to
meet the disclosure requirement.
 The identification of concentrations of credit risk requires judgement taking into account IFRS 7.AGB8 and
IG18
the circumstances of the entity. Apart from country and industry sectors, other measures
of credit risk concentrations may include credit rating or other measures of credit quality,
limited number of individual counterparties, or groups of closely related counterparties.


b) Liquidity risk
Liquidity risk is the risk that the Group or the Company will encounter difficulty in IFRS 7.33.a-b, 39.c
and IG5
meeting financial obligations due to shortage of funds. The Group’s and the Company’s
exposure to liquidity risk arises primarily from mismatches of the maturities of financial
assets and liabilities. The Group’s and the Company’s objective is to maintain a balance
between continuity of funding and flexibility through the use of stand-by credit
facilities.
The Group’s and the Company’s liquidity risk management policy is that not more than IFRS 7.33.b, 39.c
20% (31 December 2017: 20%, 1 January 2017: 20%) of loans and borrowings and AGB11F.e
(including overdrafts and convertible redeemable preference shares) should mature in IFRS 7.AGB11F.a
the next one year period, and that to maintain sufficient liquid financial assets and and c
stand-by credit facilities with three different banks. At the end of the reporting period,
approximately 8% (31 December 2017: 15%, 1 January 2017: 14%) of the Group’s
loans and borrowings will mature in less than one year based on the carrying amount
reflected in the financial statements, excluding discontinued operation. None (31
December 2017: none 1 January 2017: none) of the Company’s loans and borrowings
will mature in less than one year at the end of the reporting period. 
IFRS 7.34.a, 34.c
The Group assessed the concentration of risk with respect to refinancing its debt and and AGB8
concluded it to be low. Access to sources of funding is sufficiently available and debt
maturing within 12 months can be rolled over with existing lenders.
Analysis of financial instruments by remaining contractual maturities
IFRS 7.39.a, b and
The table below summarises the maturity profile of the Group’s and the Company’s AGB11D
financial assets used for managing liquidity risk and financial liabilities at the end of the
reporting period based on contractual undiscounted repayment obligations. 
2018
$’000
One year or One to five Over five

Group less  years years Total
Financial assets: 
Trade and other receivables 24,794 2,984 – 27,778
Cash and short-term deposits 6,117 – – 6,117
Derivatives  170 – – 170
Total undiscounted financial assets 31,081 2,984 – 34,065
Financial liabilities:
Trade and other payables 17,367 250 – 17,617
Other liabilities 2,974 – – 2,974
Loans and borrowings 1,189 12,817 4,275 18,281
Contingent consideration for business combination 685 – – 685
Total undiscounted financial liabilities 22,237 13,067 4,275 39,579
Total net undiscounted financial assets/ (liabilities) 8,844 (10,083) (4,275) (5,514)


b) Liquidity risk (continued)
31 December 2017 IFRS 7.39.a, b and

AGB11D
$’000

less  years years Total
Group
Trade and other payables 14,965 – – 14,965
1 January 2017
$’000

Group
Trade and other payables 15,488 – – 15,488


2018 IFRS 7.39.a, b and

AGB11D
$’000

Company
Trade and other receivables 338 17,289 – 17,627
Cash and short-term deposits 4,621 – 4,621

Trade and other payables 470 – – 470
Other liabilities 481 – – 481
Loans and borrowings – 4,682 2,084 6,766
Contingent consideration for business combination 685 - - 685
Total net undiscounted financial assets/ (liabilities) 3,323 12,607 (2,084) 13,846
31 December 2017
$’000

Company
Total undiscounted financial liabilities 860 3,796 2,540 7,196
1 January 2017
$’000

Company
Total undiscounted financial liabilities 649 3,596 2,640 6,885


The table below shows the contractual expiry by maturity of the Group and Company’s
contingent liabilities and commitments. The maximum amount of the financial
guarantee contracts are allocated to the earliest period in which the guarantee could
be called. 

$’000 $’000 $’000
One One to Over One One to Over One One to Over

year or five five year or five five year or five five
less  years years Total less  years years Total less  years years Total
Group
Financial
guarantees 320 245 – 565 15 240 – 255 23 180 – 203
Company
Financial
guarantees – 5,400 – 5,400 – 5,400 – 5,400 – 5,400 – 5,400
Commentary:
 Please refer to commentary no. 7 of Note 40(a) (Credit risk)
Other factors to consider in disclosing liquidity risk
 The application guidance in IFRS 7 illustrates the other factors that an entity might also IFRS 7.AGB11F
consider disclosing which include, but are not limited to, whether the entity:
(a) has committed borrowing facilities (e.g., commercial paper facilities) or other lines of
credit (e.g., stand-by credit facilities) that it can access to meet liquidity needs;
(b) holds deposits at central banks to meet liquidity needs;
(c) has very diverse funding sources;
(d) has significant concentrations of liquidity risk in either its assets or its funding sources;
(e) has internal control processes and contingency plans for managing liquidity risk;
(f) has instruments that include accelerated repayment terms (e.g., on the downgrade of
the entity’s credit rating);
(g) has instruments that could require the posting of collateral (e.g., margin calls for
derivatives);
(h) has instruments that allows the entity to choose whether it settles its financial liabilities
by delivering cash (or another financial asset) or by delivering its own shares; or
(i) has instruments that are subject to master netting agreements.
Maturity analysis for financial liabilities

IFRS 7.AGB11D
 In this illustration, certain undiscounted payments presented differ from the carrying amount
included in the balance sheet because the balance sheet amounts are based on discounted
cash flows.
When the amount payable is not fixed, the maturity analysis is determined by reference to the
conditions existing at the reporting date. For example, when the amount payable varies with
changes in an index, the amount disclosed may be based on the level of the index at the
reporting date.


 The number of time bands illustrated is only an example. An entity should use its judgement IFRS 7.AGB11
to determine the number of time bands that is suitable for the entity.
When the counterparty has a choice of when an amount is paid, the liability is included on the
basis of the earliest date on which the entity can be required to pay. For example, financial
liabilities that the entity can be required to repay on demand are included in the earliest time
band.
Maturities of financial assets held for liquidity purposes
IFRS 7.AGB11E
 IFRS 7.39.c requires an entity to describe how it manages the liquidity risk inherent in the
items disclosed in the quantitative disclosures required in IFRS 7.39.a and b. If financial
assets are readily saleable or expected to generate cash inflows to meet cash outflows on
financial liabilities and if that information is necessary to enable users of its financial
statements to evaluate the nature and extent of liquidation risk. An entity shall disclose a
maturity analysis of financial assets it holds for managing liquidity risks.
Quantitative liquidity risk disclosures
 IFRS 7 specifies minimum liquidity risk disclosures, i.e., the contractual maturity analysis of
financial liabilities, required by IFRS 7.39.
FRS 7.AGB11B
IFRS 7 permits derivative liabilities to be excluded from the paragraph 39 maturity analysis,
unless the “contractual maturities are essential for an understanding of the timing of the cash
flows”. The application guidance cites an interest rate swap designated in a cash flow hedging
relationship as an example of such an essential case. Given that the hedged cash flows are
required to be highly probable, the swap would normally be expected to be held to maturity.
IFRS 7.AGB11D
For those derivatives included in the contractual maturity analysis, the guidance still requires
gross cash flows to be disclosed for those derivatives which will involve a gross exchange of
cash flows, such as currency swaps. 
Financial guarantees issued
 IFRS 7 requires issued financial guarantee contracts to be recorded in the contractual IFRS 7.AGB11C.c
maturity analysis based on the maximum amount guaranteed. They are to be allocated to the
earliest date they can be drawn down, irrespective of whether it is likely that those
guarantees will be drawn or the amount that is expected to be paid.

Quantitative liquidity risk disclosures
 Illustrative disclosure for gross cash flows for those derivatives which will involve gross
exchange of cash flows, such as currency swaps.
Below is an illustration of such a presentation:
Group
$’000
One year One to Over five Total

or less five years years
Derivatives:
- Interest rate swaps – settled net XXX – – XXX
- Forward currency contracts – gross payments XXX – – XXX
- Forward currency contracts – gross receipts (XXX) – – (XXX)


c) Interest rate risk 

Interest rate risk is the risk that the fair value or future cash flows of the Group’s and IFRS 7.33.a- b
and IG16
the Company’s financial instruments will fluctuate because of changes in market
interest rates. The Group’s and the Company’s exposure to interest rate risk arises
primarily from their loans and borrowings, interest-bearing loans given to related
parties and investments in debt securities. The Group does not hedge its investment in
fixed rate debt securities as they have active secondary or resale markets to ensure
liquidity. The Company’s loans at floating rate given to related parties form a natural
hedge for its non-current floating rate bank loan. All of the Group’s and the Company’s
financial assets and liabilities at floating rates are contractually re-priced at intervals of
less than 6 months (2017: less than 6 months) from the end of the reporting period.
The Group’s policy is to manage interest cost using a mix of fixed and floating rate IFRS 7.33.b and
34.a
debts. The Group’s policy is to keep 40% to 70% (2017: 40% to 70%) of its loans and
borrowings at fixed rates of interest. To manage this mix in a cost-efficient manner, the
Group enters into interest rate swaps. At the end of the reporting period, after taking
into account the effect of an interest rate swap, approximately 62% (2017: 58%) of the
Group’s borrowings are at fixed rates of interest. 
Sensitivity analysis for interest rate risk 
At the end of the reporting period, if SGD interest rates  had been 75 (2017: 75) IFRS 7.40, IG36
and AGB18
basis points lower/higher with all other variables held constant, the Group’s profit
before tax would have been $20,000 (2017: $18,000) higher/lower, arising mainly as
a result of lower/higher interest expense on floating rate loans and borrowings,
lower/higher interest income from floating rate loans to related parties and
lower/higher positive fair value of an interest rate swap, and the Group’s other reserve
in other comprehensive income would have been $30,000 (2017: $30,000)
higher/lower, arising mainly as a result of an increase/decrease in the fair value of
fixed rate debt securities classified as available-for-sale. The assumed movement in
basis points for interest rate sensitivity analysis is based on the currently observable
market environment, showing a significantly higher volatility as in prior years.


c) Interest rate risk  (continued)
Commentary:
Sources of interest rate risk
 Interest rate risk arises on interest-bearing financial instruments recognised in the balance IFRS 7.AGB22
sheet (e.g., loans and receivables and debt instruments issued) and on some financial
instruments not recognised in the balance sheet (e.g., some loan commitments).
 Please refer to commentary no. 3 of Note 40(a) (Credit risk)
Sensitivity analysis for market risk
 IFRS 7 requires disclosure of sensitivity analysis for each type of market risk to which an IFRS 7.40.a
entity is exposed at the reporting date, showing how profit or loss and equity would have
been affected by changes in the relevant risk variable that were reasonably possible at that
date. These analyses shall be provided for the whole of an entity’s business. However, an IFRS 7.AGB21
entity may also “drill down” to provide different types of sensitivity analysis for different
classes of financial instruments.
The sensitivity analysis should be based on changes in the risk variable that were IFRS 7.AGB19 and
reasonably possible at the reporting date having considered the economic environments in IG35
which the entity operates, the type of market risk concerned and the time frame over which
the assessment is being made i.e., the period until the entity will next present the analysis
e.g., next annual reporting period. A reasonably possible change should not include remote
or “worst case” scenarios or “stress test”.
An entity should also disclose the methods and assumptions used in preparing the IFRS 7.40.b and c
sensitivity analysis, and changes from the previous period in the methods and assumptions
used, including the reasons for such changes.
Instead of the sensitivity analysis illustrated, IFRS 7 permits an entity to use a sensitivity IFRS 7.41 and
AGB20
analysis that reflects interdependencies between risk variables, such as a value-at-risk
methodology, if it uses this analysis to manage its exposure to financial risks. This applies
even if such a methodology measures only the potential for loss and does not measure the
potential for gain. In such cases, the entity should also disclose an explanation of the
method and objective of the analysis (e.g., whether the model relies on Monte Carlo
simulations), the main parameters and assumptions used (e.g., the holding period and
confidence level), and limitations that may result in the information disclosed not fully
reflecting the fair value of assets and liabilities involved.
When the sensitivity analyses disclosed are unrepresentative of a risk inherent in a financial IFRS 7.42 and IG37-
instrument (e.g., because the end of the reporting period exposure does not reflect 40
exposure during the financial year), the entity shall disclose that fact and the reason it
believes the sensitivity analyses are unrepresentative, including additional disclosures
regarding the risk inherent in that financial instrument.
In this illustration, company-level sensitivity analysis has not been disclosed because IFRS 7.34.b
according to the assumed scenario, XYZ Holdings (Singapore) Limited is an investment
holding company with no significant net exposure to market price risk. If this is not the
case, the entity should provide company-level disclosures as appropriate.


c) Interest rate risk  (continued)
Sensitivity analysis for interest rate risk
 In this illustration, the interest rate risk sensitivity analysis has been performed for the effect of IFRS 7.IG34
a change in SGD interest rates because it is relevant to the interest rate risk exposure of XYZ
Holdings (Singapore) Limited. An entity might disclose a sensitivity analysis for interest rate
risk for each currency in which the entity has material exposure to interest rate risk.
Illustrative tabular disclosure of interest rate risk sensitivity analysis where more than one
currency is involved:
The table below demonstrates the sensitivity to a reasonably possible change in interest
rates with all other variables held constant, of the Group’s profit before tax (through the
impact on interest expense on floating rate loans and borrowings) and the Group’s equity
(through the impact on other reserves for fixed rate debt securities classified as available-
for-sale).
Group
$’000
Increase/ Effect on profit Effect on

decrease in before tax equity
basis points
2018
- Singapore dollar +15 (XX) (XX)
- US dollar +20 (XX) (XX)
- Singapore dollar -10 XX XX
- US dollar -15 XX XX
2017
- Singapore dollar +15 (XX) (XX)
- US dollar +20 (XX) (XX)
- Singapore dollar -10 XX XX
- US dollar -15 XX XX


d) Foreign currency risk 

The Group has transactional currency exposures arising from sales or purchases that IFRS 7.33.a and
34.a
are denominated in a currency other than the respective functional currencies of Group
entities, primarily SGD, Malaysian Ringgit (Ringgit) and Renminbi (RMB). The foreign
currencies in which these transactions are denominated are mainly United States
Dollars (USD). Approximately 23% (2017: 25%) of the Group’s sales are denominated in
foreign currencies whilst almost 80% (2017: 83%) of costs are denominated in the
respective functional currencies of the Group entities. The Group’s trade receivable and
trade payable balances at the end of the reporting period have similar exposures.
The Group and the Company also hold cash and short-term deposits denominated in IFRS 7.33.a and
foreign currencies for working capital purposes. At the end of the reporting period, 34.a
such foreign currency balances are mainly in USD.
IFRS 7.33.b
The Group requires all of its operating entities to use forward currency contracts to
eliminate the currency exposures on any individual transactions in excess of $100,000
for which payment is anticipated more than one month after the Group has entered
into a firm commitment for a sale or purchase. The forward currency contracts must be
in the same currency as the hedged item. It is the Group’s policy not to enter into
forward contracts until a firm commitment is in place. It is the Group’s policy to
negotiate the terms of the forward currency contracts to match the terms of the firm
commitment to maximise hedge effectiveness.
At 31 December 2018, the Group had hedged 75% (2017: 68%) and 70% (2017: 65%) IFRS 7.34.a
of its foreign currency denominated sales and purchases respectively, for which firm
commitments existed at the end of the reporting period, extending to March 2019
(2017: March 2018).  The Group does not apply hedge accounting for such foreign
currency denominated sales and purchases.
The Group is also exposed to currency translation risk  arising from its net
investments in foreign operations, including Malaysia, People’s Republic of China (PRC)
and Vietnam. The Group’s investment in its Vietnam subsidiary is hedged by a USD
denominated bank loan, which mitigates structural currency exposure arising from the
subsidiary’s net assets. The Group’s net investments in Malaysia and PRC are not
hedged as currency positions in Ringgit and RMB are considered to be long-term in
nature.
Sensitivity analysis for foreign currency risk 
IFRS 7.40 and
The following table demonstrates the sensitivity of the Group’s profit before tax to a AGB18
reasonably possible change in the USD, RMB and Ringgit exchange rates against the
respective functional currencies of the Group entities, with all other variables held
constant. 
Group
2018 2017
$’000 $’000
Profit before tax Profit before tax
USD/SGD - strengthened 3% (2017: 3%) –30 –30
- weakened 3% (2017: 3%) +28 +28
USD/RMB - strengthened 4% (2017: 4%) –15 –12
- weakened 4% (2017: 4%) +15 +12
RMB/SGD - strengthened 4% (2017: 4%) +57 +66
- weakened 4% (2017: 4%) –57 –66
Ringgit/SGD - strengthened 3% (2017: 4%) +40 +68
- weakened 3% (2017: 4%) –40 –68


d) Foreign currency risk  (continued)
Commentary:
Disclosure of amounts denominated in foreign currencies
 The disclosure of exposures to foreign currency amounts is required under the disclosure IFRS 7.31 and 34
principles of IFRS 7.31 (nature and extent of risks) as well as the specific requirement in IFRS
7.34 to disclose summary quantitative data about the entity's exposure to risks (including
foreign currency risks) arising from financial instruments. In this illustration, most of the
information regarding foreign currency risk exposures is presented in Note 40(d), Note 21,
Note 27 and Note 31. These disclosures include a mixture of quantitative data that are
measured in dollar amounts (e.g., cash and short-term deposits amount denominated in foreign
currency) as well as data that are not measured in dollar amounts, e.g., the exposures arising
from trade receivables are represented by the percentage of total trade receivables
denominated in foreign currencies.
Each entity should customise the information disclosed according to its specific circumstances.
 Please refer to commentary no. 7 of Note 40(a) (Credit risk)
 Please refer to commentary no. 3 of Note 40(c) (Interest rate risk)
 According to IFRS 7, foreign currency risk arises on financial instruments that are denominated IFRS 7.AG B23
in a foreign currency i.e., in a currency other than the functional currency in which they are
measured. For the purpose of IFRS 7, currency risk does not arise from financial instruments
that are non-monetary items or from financial instruments denominated in the functional
currency. Currency translation risk arising from its net investments in foreign operations does
not fall within the definition of foreign currency risk according to IFRS 7. 

 In the scenario illustrated, there is no impact (other than those affecting net profit) to equity
arising from exposures to currency risk as defined by IFRS 7.
Illustrative disclosure if there are impact to equity arising from exposures to currency risk:
The following table demonstrates the sensitivity of the Group’s profit before tax and equity to
a reasonably possible change in the USD, RMB and Ringgit exchange rates against the
respective functional currencies of the Group entities, with all other variables held constant.
Group
2018 2017
$’000 $’000
Profit Equity Profit Equity
before before
tax tax
USD/SGD - strengthened X% (2017: X%) –XX –XX –XX –XX
- weakened X% (2017: X%) +XX +XX +XX +XX
USD/RMB - strengthened X% (2017: X%) –XX –XX –XX –XX
RMB/SGD - strengthened X% (2017: X%) –XX –XX –XX –XX
Ringgit/SGD - strengthened X% (2017: X%) –XX –XX –XX –XX


e) Market price risk

Market price risk is the risk that the fair value or future cash flows of the Group’s IFRS 7.33.a
financial instruments will fluctuate because of changes in market prices (other than
interest or exchange rates). The Group is exposed to equity price risk arising from its
investment in quoted equity securities. These securities are quoted on the Singapore
Exchange Securities Trading Limited (SGX-ST) in Singapore and are classified as held
for trading or available-for-sale financial assets. The Group does not have exposure to
commodity price risk.
The Group’s objective is to manage investment returns and equity price risk using a mix IFRS 7.33.b and
of investment grade shares with steady dividend yield and non-investment grade 34.a
shares with higher volatility. The Group’s policy is to limit its interest in the latter type
of investments to 25% (2017: 25%) of its entire equity portfolio. Any deviation from
this policy is required to be approved by the CEO and audit committee. At the end of
the reporting period, 24% (2017: 19%) of the Group’s equity portfolio consist of non-
investment grade shares of companies operating in PRC and Singapore, while the
remaining portion of the equity portfolio comprise investment grade shares included in
the Straits Times Index (STI). 
Sensitivity analysis for equity price risk 
At the end of the reporting period, if the price of the shares held had been 2% (2017: IFRS 7.40,
2%) higher/lower with all other variables held constant, the Group’s profit before tax AGB17-18 and
AGB25-27
would have been $31,000 (2017: $25,000) higher/lower, arising as a result of
higher/lower fair value gains on held for trading investments in equity instruments, and
the Group’s other comprehensive income would have been $35,000 (2017: $17,000)
higher/lower, arising as a result of an increase/decrease in the fair value of equity
securities classified as available-for-sale.
Commentary:
 Please refer to commentary no. 3 of Note 40(a) (Credit risk)
 Please refer to commentary no. 3 of Note 40(c) (Interest rate risk)
 In this illustration, the sensitivity analysis for equity price risk has been performed by
analysing the effect of a reasonably possible change in STI on the fair value of the equity
instruments held by the Group, as it is assumed that all the quoted equity securities held by
the Group are listed in Singapore.


41. Capital management  IAS 1.134
Capital includes debt and equity items as disclosed in the table below. IAS 1.135.a.i
The primary objective of the Group’s capital management is to ensure that it maintains a IAS 1.135.a
strong credit rating and healthy capital ratios in order to support its business and
maximise shareholder value.
The Group manages its capital structure and makes adjustments to it, in light of changes IAS 1.135.a and c
in economic conditions. To maintain or adjust the capital structure, the Group may adjust
the dividend payment to shareholders, return capital to shareholders or issue new shares.
No changes were made in the objectives, policies or processes during the years ended 31
December 2018 and 31 December 2017.
As disclosed in Note 34(c), a subsidiary of the Group is required by the Foreign Enterprise IAS 1.135.a.ii and d
Law of the PRC to contribute to and maintain a non-distributable statutory reserve fund
whose utilisation is subject to approval by the relevant PRC authorities. This externally
imposed capital requirement has been complied with by the above-mentioned subsidiary
for the financial years ended 31 December 2018 and 2017. 
The Group monitors capital using a gearing ratio, which is net debt divided by total capital IAS 1.135.a
plus net debt. The Group’s policy is to keep the gearing ratio between 20% and 40%. The
Group includes within net debt, loans and borrowings (excluding convertible redeemable
preference shares), trade and other payables, less cash and short-term deposits excluding
discontinued operations. Capital includes convertible redeemable preference shares,
equity attributable to the owners of the Company less the fair value adjustment reserve
and the abovementioned restricted statutory reserve fund.
Group IAS 1.135.b
2018 2017
$’000 $’000
Loans and borrowings (Note 30) 14,604 15,478

Trade and other payables (Note 31) 17,567 14,965
Less: - Convertible redeemable preference shares (Note 30) (450) (428)

- Cash and short-term deposits (Note 27) (6,117) (4,858)
Net debt 25,604 25,157
Convertible redeemable preference shares 450 428

Equity attributable to the owners of the Company 77,648 72,064
Less: - Fair value adjustment reserve (563) (426)
- Statutory reserve fund (903) (740)
Total capital 76,632 71,326
Capital and net debt 102,236 96,483
Gearing ratio 25% 26%


41. Capital management  (continued)
Commentary:
Disclosure of capital management information according to entity specific circumstances
 IAS 1 requires the disclosure of information (as provided to key management personnel) that IAS 1.134 and
enables users of financial statements to evaluate the entity’s objectives, policies and 135
processes for managing capital, including (but not limited to) a description and summary
quantitative data of what it manages as capital, the presence and impact of externally
imposed capital requirements and how the entity is meeting its objectives for managing
capital etc. This note as well as IAS 1.IG10 provide illustrative examples of such disclosures
of an entity that is not a regulated financial institution.
It is important to note that the illustration provided in this note is based on certain
assumed facts regarding circumstances surrounding XYZ Holdings (Singapore) Limited
and its objectives, policies and processes for managing capital. For example, a gearing
ratio with a specific measurement basis has been disclosed as this is the measure used
to monitor capital. The Group considers both capital and net debt as relevant
components of funding, hence part of its capital management. Other entities may use
different methods to monitor capital or use gearing ratios with different measurement
bases. Disclosures would have to be customised in the light of specific facts and
circumstances applicable to the entity.
Also, an entity may manage capital in a number of ways and be subject to a number of IAS 1.136
different capital requirements. For example, a conglomerate may include entities that
undertake insurance and banking activities, and those entities may also operate in several
jurisdictions. When an aggregate disclosure of capital requirements and how capital is
managed would not provide useful information or distorts a financial statement user’s
understanding of an entity’s capital resources, the entity shall disclose separate information
for each capital requirement to which the entity is subject to.
Externally imposed capital requirement
 In this illustration, it is assumed that the externally imposed capital requirement has been IAS 1.135.e
complied with. When an entity has not complied with externally imposed capital
requirements, the consequences of such non-compliance shall be disclosed. IAS 1.IG 11 has
an example that illustrates the application of IAS 1.135.e when an entity has not complied
with externally imposed capital requirement during the period.


42. Segment information  IFRS 8.20, 21.a
For management purposes, the Group is organised into business units based on their IFRS 8.22
products and services, and has four reportable segments as follows:
I. The electronic components segment is a supplier of digital and analogue electronic IFRS 8.12
components for consumer and industrial-grade electronics for manufacturers. This
reportable segment has been formed by aggregating the customer electronic
components segment and the industrial-grade electronics segment, which are
regarded by management to exhibit similar economic characteristics. In making this
judgement, management considers the products and services offered by these IFRS 8.22.aa
segments such as specialised electronic components, energy efficiency, and electrical
architecture are in the areas of common and the segments share common production
facilities and usage of similar raw materials in the production process. 
II. The property segment is in the business of constructing, developing and leasing out of
residential and commercial properties.
III. The corporate segment is involved in Group-level corporate services, treasury
functions and investments in marketable securities.
IV. The fire prevention equipment and services segment produces and installs
extinguishers, fire prevention equipment and fire retardant fabrics.
V. The rubber hose segment produces and sells rubber hose. This segment has been
classified as a discontinued operation during the financial year (Note 11).
Except as indicated above, no operating segments have been aggregated to form the IFRS 8.27
above reportable operating segments.
IFRS 8.28.b
Management monitors the operating results of its business units separately for the
purpose of making decisions about resource allocation and performance assessment.
Segment performance is evaluated based on operating profit or loss which in certain
respects, as explained in the table below, is measured differently from operating profit or
loss in the consolidated financial statements. Group financing (including finance costs)
and income taxes are managed on a group basis and are not allocated to operating IFRS 8.27.a
segments.
Transfer prices between operating segments are on an arm’s length basis in a manner
similar to transactions with third parties.


42. Segment information  (continued)
Year ended 31 December 2018

Fire
prevention Rubber Hose Adjustments
Electronic equipment (Discontinued and
components Property Corporate and services operation)  eliminations Notes Consolidated
$’000 $’000 $’000 $’000 $’000 $’000 $’000

Revenue:
IFRS 8.23.a
External customers 70,465 44,515 – 21,740 13,152 (13,152) A 136,720 and 32
Inter-segment 7,465 – 265 – – (7,730) B – IFRS 8.23.b
Total revenue 77,930 44,515 265 21,740 13,152 (20,882) 136,720
Results:
Interest income  – – 430 – – – 430 IFRS 8.23.c
Dividend income – – 526 – – – 526 IFRS 8.23.f
Fair value gains on
investment properties – 489 – – – – 489 IFRS 8.23.f
Depreciation and
amortisation 1,108 925 150 1,080 150 (150) A 3,263 IFRS 8.23.e
Share of results of joint
ventures - 151 - - - - 151 IFRS 8.23.g
Share of results of
associates – 657 – – – – 657 IFRS 8.23.g
Impairment of non- IAS 36.129.a
financial assets 500 – – - 650 (650) A 500 IFRS 8.23.f
Other non-cash expenses 621 107 310 367 – – C 1,405 IFRS 8.23.i
Segment profit/(loss) 2,015 2,001 452 4,020 (551) (880) D 7,057 IFRS 8.23
Assets:
Investment in joint
ventures - 1,674 - - - - 1,674 IFRS 8.24.a
Investment in associates – 10,595 – – – – 10,595 IFRS 8.24.a
Additions to non-current
assets 8,134 2,803 758 – – – E 11,695 IFRS 8.24.b
Segment assets  56,189 22,810 12,450 25,566 2,270 12,489 F 131,774 IFRS 8.23
Segment liabilities  11,234 10,383 1,314 7,890 1,043 20,766 G 52,630 IFRS 8.23


Year ended 31 December 2017

Fire
$’000 $’000 $’000 $’000 $’000 $’000 $’000

Revenue:
IFRS 8.23.a
External customers 80,225 40,358 – 25,020 14,598 (14,598) A 145,603 and 32
Inter-segment 7,319 – 120 – – (7,439) B – IFRS 8.23.b
Total revenue 87,544 40,358 120 25,020 14,598 (22,037) 145,603
Results:
Interest income  – – 327 – – – 327 IFRS 8.23.c
Dividend income – – 406 – – – 406 IFRS 8.23.f
Fair value gains on
investment properties – 129 – – – – 129 IFRS 8.23.f
Depreciation and
amortisation 1,041 883 115 1,051 125 (125) A 3,090 IFRS 8.23.e
Share of results of joint
ventures - 126 - - - - 126 IFRS 8.23.g
Share of results of
associates 94 230 – – – – 324 IFRS 8.23.g
Impairment of non- IAS 36.129.a
financial assets – – – – – – A – IFRS 8.23.f
Other non-cash expenses 534 95 218 345 – – C 1,192 IFRS 8.23.i
Segment profit/(loss) 3,988 3,635 438 3,026 (193) (1,468) D 9,426 IFRS 8.23
Assets:
Investment in joint
ventures - 1,515 - - - - 1,515 IFRS 8.24.a
Investment in associates 536 9,755 – – – – 10,291 IFRS 8.24.a
Additions to non-current
assets 2,872 1,560 221 – – – E 4,653 IFRS 8.24.b
As at 1 January 2017
Fire
$’000 $’000 $’000 $’000 $’000 $’000 $’000
Assets:
Investment in joint
ventures - 1,364 - - - - 1,364 IFRS 8.24.a
Investment in associates – 10,099 – – – – 10,099 IFRS 8.24.a


Notes Nature of adjustments and eliminations to arrive at amounts reported in the

IFRS 8.21.c
consolidated financial statements 
A The amounts relating to the rubber hose segment has been excluded to arrive IFRS 8.28.a and b
at amounts shown in profit or loss as they are presented separately in the
statement of comprehensive income within one line item, “loss from
discontinued operation, net of tax”.
B Inter-segment revenues are eliminated on consolidation. IFRS 8.28.a
C Other non-cash expenses consist of amortisation of land use rights, share- IFRS 8.28.e
based payments, inventories written-down, provisions, and impairment of
financial assets as presented in the respective notes to the financial
statements.
D The following items are added to/(deducted from) segment profit to arrive at IFRS 8.28.b
“profit before tax from continuing operations” presented in the consolidated
income statement:
2018 2017
$’000 $’000
Segment results of discontinued operation 551 193
Share of results of joint ventures 151 126
Share of results of associates 657 324
Profit from inter-segment sales (105) (50)
Finance costs (1,715) (1,512)
Unallocated corporate expenses (419) (549)
(880) (1,468)
E Additions to non-current assets consist of additions to property, plant and

equipment, investment properties and intangible assets.
F The following items are added to/(deducted from) segment assets to arrive at IFRS 8.28.c
total assets reported in the consolidated balance sheet:
2018 2017 2017
$’000 $’000 $’000
Investment in joint ventures 1,674 1,515 1,364
Investment in associates 10,595 10,291 10,099
Deferred tax assets 470 463 455
Inter-segment assets (250) (141) (150)
12,489 12,128 11,768
G The following items are added to/(deducted from) segment liabilities to arrive IFRS 8.28.d
at total liabilities reported in the consolidated balance sheet:
2018 2017 2017
$’000 $’000 $’000
Deferred tax liabilities 2,273 1,904 1,517
Income tax payable 2,914 6,417 5,999
Loans and borrowings (including
discontinued operation) 15,604 15,478 16,640
Inter-segment liabilities (25) (20) (18)
20,766 23,779 24,138



Geographical information  IFRS 8.33.a and b
IFRS 8.20
Revenue and non-current assets information based on the geographical location of
customers and assets respectively are as follows:
Revenues Non-current assets
2018 2017 2018 2017 2017
$’000 $’000 $’000 $’000 $’000
IFRS 8.33.a.i and b.i
Singapore 86,432 99,496 20,570 19,346 18,585
People’s Republic of China 22,970 23,005 15,896 15,591 14,528
Malaysia 20,990 20,440 5,061 4,138 3,762
Vietnam and others 19,480 17,260 3,082 3,010 2,203
Discontinued operation (13,152) (14,598) (1,016) - -
136,720 145,603 43,593 42,085 39,078
Non-current assets information presented above consist of property, plant and equipment,
investment properties, intangible assets, and land use rights as presented in the
consolidated balance sheet.
Information about a major customer 
Revenue from one major customer amount to $15,102,000 (2017: $16,080,000), arising
from sales by the electronics components segment. IFRS 8.34
Commentary:
Information about segment profit or loss
 In addition to a measure of profit or loss and total assets for each reportable segments, entities
are required to disclose the following about each reportable segment if the specified amounts IFRS 8.23
are included in the measure of segment profit or loss reviewed by the chief operating decision
maker (CODM), or are otherwise regularly provided to the CODM, even if not included in that
measure of segment profit or loss:
(a) Revenues from external customers
(b) Revenues from transactions with other operating segments of the same entity
(c) Interest revenue
(d) Interest expense*
(e) Depreciation and amortisation
(f) Material items of income and expense disclosed in accordance with paragraph 86 of IAS 1
Presentation of Financial Statements
(g) The entity’s interest in profit or loss of associates and joint ventures accounted for by the
equity method
(h) Income tax expense or income*
(i) Material non-cash items other than depreciation and amortisation
* In this illustration, interest expense and income tax expense have not been disclosed by
segment as these items are managed on a group basis, and are not provided to the CODM at
the operating segment level.


Aggregation criteria
 IFRS 8 requires disclosures of judgements made by management in applying the aggregation IFRS 8.13
criteria in paragraph 12, including a brief description of the operating segments that have been
aggregated in this way and the economic indicators that have been assessed in determining that
the aggregated operating segments share similar economic characteristics.
In this illustration, the Group has applied aggregation criteria in IFRS 8.12 and the disclosure of
the judgements made by management in aggregating the segments is disclosed accordingly.
 IFRS 8 does not provide specific disclosure requirements for an operating segment classified as
discontinued operation. An entity is therefore not required to provide such segment information
as long as the classification criteria held for sale is met. It is however allowed to continue to
present segment information as long as the definition as operating segment is met.
In this illustration, an entire reportable segment has been classified as discontinued operation in
the current period. As this operating segment still meet the quantitative thresholds for separate IFRS 8.23
reporting, it continues to be reported in the segment information.
Interest income
 An entity shall report interest revenue separately from interest expense for each reportable
segment unless a majority of the segment’s revenues are from interest and the CODM relies
primarily on net interest revenue to assess the performance of the segment and make decisions
about resources to be allocated to the segment. In that situation, an entity may report that
segment’s interest revenue net of its interest expense and disclose that it has done so.
Disclosure of operating segment assets and segment liabilities IFRS 8.23
 Disclosure of operating segment assets and liabilities are required only where such measures are
provided to the CODM.
Explanation of measurements of segment profit or loss, segment assets and segment liabilities
IFRS 8.27.b-d
 If not apparent from the disclosures of reconciliations in this note, entities are required to disclose
further information regarding the nature of differences between the measurements of segment
profit or loss, segment assets, segment liabilities, and the entity’s profit or loss before tax and
discontinued operations, assets and liabilities. Those differences could include accounting policies
and policies for allocation of centrally incurred costs, jointly used assets, jointly utilised liabilities
that are necessary for an understanding of the reported segment information.
The following should also be disclosed, where applicable:
- The nature of any changes from prior periods in the measurement methods used to
determine reported segment profit or loss and the effect, if any, of those changes on the
measure of segment profit or loss.
IFRS 8.27.e-f
- The nature and effect of any asymmetrical allocations to reportable segments. For example,
an entity might allocate depreciation expense to a segment without allocating the related
depreciable assets to that segment.


Information about segment profit or loss
 An entity should disclose:

(a) Revenues from external customers (i) attributed to the entity’s country of domicile; and
(ii) attributed to all foreign countries in total from which the entity derives revenues. If
revenues from external customers attributed to an individual foreign country are
material, those revenues should be disclosed separately. An entity should disclose the IFRS 8.33
basis for attributing revenues from external customers to individual countries.
(b) Non-current assets other than financial instruments, deferred tax assets, post-
employment benefit assets, and rights arising under insurance contracts (i) located in the
entity’s country of domicile and (ii) located in all foreign countries in total in which the
entity holds assets. If assets in an individual foreign country are material, those assets
should be disclosed separately.
Information about major customers
 For the purposes of disclosing information about major customers, a group of entities known to
a reporting entity to be under common control shall be considered a single customer, and a
government (national, state, provincial, territorial, local or foreign) and entities known to the
reporting entity to be under the control of that government shall be considered a single
customer.
43. Dividends IFRS 8.34
Group and Company
2018 2017
$’000 $’000
Declared and paid during the financial year:

Dividends on ordinary shares:
- Final exempt (one-tier) dividend for 2017: 4.34 cents (2016: 4.45 cents)
per share 1,001 1,025
- Interim exempt (one-tier) dividend for 2018: 2.49 cents (2017: 2.41
cents) per share 612 557
1,613 1,582
Proposed but not recognised as a liability as at 31 December:
Dividends on ordinary shares, subject to shareholders’ approval at the AGM:
- Final exempt (one-tier) dividend for 2018: 4.10 cents (2017: 4.34 cents)
per share 1,008 1,001
IAS 1.137.a,
2018 XYZ Holdings (Singapore) Limited | 231 IAS 10.12

44. Events occurring after the reporting period

On 14 January 2019, a building of the Group, with net carrying value of $900,000, was IAS 10.21 and 22.d
severely damaged by fire and inventories with net carrying value of $157,000 were lost.
It is expected that insurance proceeds will fall short of the costs of rebuilding and loss of
inventories by $250,000. The financial statements for the year ended 31 December 2018
have not been adjusted for the financial effect of this incident.
On 15 February 2019, the Company completed the disposal of one of its wholly-owned IAS 10.21 and 22.a
subsidiary, Rubber Hose Pte Ltd (RHP), which has been classified as discontinued
operation (Note 11) as at 31 December 2018, for a cash consideration of $199,000.
45. Authorisation of financial statements for issue

IAS 10.17
The financial statements for the year ended 31 December 2018 were authorised for issue
in accordance with a resolution of the directors on 27 February 2019.

Appendices:
Appendix A:
Additional illustrations that
Additional illustrations
are not relevant that are
to XYZ
not relevant to XYZ Holdings
Holdings

Additional illustrative disclosures that are not relevant to XYZ Holdings
Appendix A-1 Consolidated statement of comprehensive

income in one statement – illustrating the
analysis of expenses by nature
Illustrating the Statement of Comprehensive Income in one statement with the analysis of
expenses by nature:
2018 2017
Note $’000 $’000 IAS 1.81A.a, IAS 1.102
Continuing operations
Revenue X 136,720 145,603 IAS 1.82.a, IAS 1.102
Other items of income IAS 1.102

Interest income X 430 327
Dividend income from investment securities 526 406
Other income X 1,511 886
Items of expense IAS 1.99

Raw materials and consumables used (98,607) (93,083) IAS 1.102
Changes in inventories of finished goods and work-in-progress (2,203) (16,631) IAS 1.102
Employee benefits expense X (20,502) (19,024) IAS 1.102
Depreciation and amortisation expense (3,113) (2,965) IAS 1.102
Impairment losses on financial assets (200) (425) IAS 1.82.ba
Net foreign exchange loss (136) (145) IAS 21.52.a
Finance costs (1,715) (1,512) IAS 1.82.b
Other expenses (6,467) (4,461) IAS 1.102
Share of results of joint venture 151 126 IAS 1.82.c

Share of results of associates 657 324 IAS 1.82.c
Profit before tax from continuing operations X 7,057 9,426 IAS 1.85
Income tax expense X (1,557) (1,733) IAS 1.82.d, IAS 12.77
Profit from continuing operations, net of tax 5,500 7,693 IAS 1.85
IAS 1.82.ea, IFRS 5.33.a &
Loss from discontinued operation, net of tax X (544) (188) 33A
Profit for the year 4,956 7,505 IAS 1.81A.a
Other comprehensive income: 
Items that will not be reclassified to profit or loss: IAS 1.82A.a
Net fair value gains on equity instruments at fair value through other
comprehensive income 130 - IFRS 7.20.a.vii
Net surplus on revaluation of freehold land and buildings 1,250 2,404 IAS 1.82A.a, IAS 16.77.f
Share of gain on property revaluation of associates  62 10 IAS 1.82A.a, IAS 28.39
1,442 2,414
Items that may be reclassified subsequently to profit or loss: IAS 1.82A.b
Net fair value gains on debt instruments at fair value through other
comprehensive income 64 - IFRS 7.20.a.viii
Net fair value changes on debt instruments at fair value through other
comprehensive income reclassified to profit or loss (20) - IFRS 7.20.a.viii
Net gain on fair value changes of available-for-sale financial assets - 110 IFRS 7.20.a.ii
Net fair value changes on available-for-sale financial assets reclassified
to profit or loss - (12) IFRS 7.20.a.ii
Foreign currency translation (181) (82) IAS 1.82A.b, IAS 21.52.b
(7) 16
Other comprehensive income for the year, net of tax 1,305 2,430 IAS 1.81A.b
Total comprehensive income for the year 6,261 9,935 IAS 1.81A.c
Profit for the year attributable to:

Profit from continuing operations, net of tax 5,320 7,293 IFRS 5.33.d
Loss from discontinued operation, net of tax (544) (188) IFRS 5.33.d
4,776 7,105 IAS 1.81B.a.ii
Non-controlling interests
Profit from continuing operations, net of tax 180 400
Loss from discontinued operation, net of tax - -
180 400 IAS 1.81B.a.i
Total comprehensive income attributable to:

Owners of the Company 6,091 9,475 IAS 1.81B.b.ii
Non-controlling interests 170 460 IAS 1.81B.b.i
6,261 9,935

Appendix A-1 Consolidated statement of comprehensive

income in one statement – illustrating the
analysis of expenses by nature
Illustrating the Statement of Comprehensive Income in one statement with the analysis of
expenses by nature (continued):
2018 2017
Note $’000 $’000 IAS 1.81A.a, IAS 1.102
Attributable to:
Total comprehensive income from continuing operations, net of tax X 6,585 7,379 IFRS 5.33.d
Total comprehensive income from discontinued operations, net of tax X (494) (168) IFRS 5.33.d
6,091 7,211
Earnings per share from continuing operations attributable to owners

of the Company (cents per share)
Basic X 22.98 21.81 IAS 33.66
Diluted X 22.73 21.58 IAS 33.66

Basic X 20.63 21.00 IAS 33.66
Diluted X 20.17 20.53 IAS 33.66
Commentary:
Tax effects related to each component of other comprehensive income
 An entity may present components of other comprehensive income either: IAS 1.91
(a) net of related tax effects, as illustrated in the statement of comprehensive income,
or
(b) before related tax effects with one amount shown for the aggregate amount of
income tax relating to those items.
If an entity elects alternative (b), it shall allocate the tax between the items that might be
reclassified subsequently to the profit or loss section and those that will not be
reclassified subsequently to the profit or loss section.
 In this illustration, the share of other comprehensive income of associates relates to IAS 1.82A
property revaluation attributable to owners of the associates, an item which will not be
reclassified to profit or loss subsequently.
If an entity has share of other comprehensive income of associates which relates to items
that may be reclassified subsequently to profit or loss, the item shall be presented under
the group of items that may be reclassified subsequently to profit or loss.

Appendix A-2 Defined benefit plans 

Extract of summary of significant accounting policies illustrating accounting policies relating to
defined benefit plan
X. Summary of significant accounting policies (continued)
X.X Defined benefit plan
The net defined benefit liability or asset is the aggregate of the present value of the defined IAS 19.8
benefit obligation (derived using a discount rate based on high quality corporate bonds) at
the end of the reporting period reduced by the fair value of plan assets (if any), adjusted for
any effect of limiting a net defined benefit asset to the asset ceiling. The asset ceiling is the
present value of any economic benefits available in the form of refunds from the plan or
reductions in future contributions to the plan.
The cost of providing benefits under the defined benefit plans is determined separately for IAS 19.67
each plan using the projected unit credit method.
Defined benefit costs comprise the following:
IAS 19.120
- Service cost
- Net interest on the net defined benefit liability or asset
- Remeasurements of net defined benefit liability or asset
Service costs which include current service costs, past service costs and gains or losses on IAS 19.8
non-routine settlements are recognised as expense in profit or loss. Past service costs are IAS 19.103
recognised when plan amendment or curtailment occurs.
Net interest on the net defined benefit liability or asset is the change during the period in the IAS 19.8
net defined benefit liability or asset that arises from the passage of time which is determined IAS 19.123
by applying the discount rate based on high quality corporate bonds to the net defined
benefit liability or asset. Net interest on the net defined benefit liability or asset is recognised
as expense or income in profit or loss.
Remeasurements comprising actuarial gains and losses, return on plan assets and any IAS 19.127
IAS 19.122
change in the effect of the asset ceiling (excluding net interest on defined benefit liability)
are recognised immediately in other comprehensive income in the period in which they arise.
Remeasurements are recognised in retained earnings within equity and are not reclassified
to profit or loss in subsequent periods.
Plan assets are assets that are held by a long-term employee benefit fund or qualifying IAS 19.8
insurance policies. Plan assets are not available to the creditors of the Group, nor can they IAS 19.113
be paid directly to the Group. Fair value of plan assets is based on market price information.
When no market price is available, the fair value of plan assets is estimated by discounting
expected future cash flows using a discount rate that reflects both the risk associated with
the plan assets and the maturity or expected disposal date of those assets (or, if they have
no maturity, the expected period until the settlement of the related obligations).
The Group’s right to be reimbursed of some or all of the expenditure required to settle a IAS 19.116
defined benefit obligation is recognised as a separate asset at fair value when and only when
reimbursement is virtually certain.


Extracts of summary of significant accounting estimates and judgements relating to defined
benefit plan
X. Significant accounting judgements and estimates

X.X Key sources of estimation uncertainty
The cost of defined benefit pension plans and other post-employment medical benefits as IAS 1.125
well as the present value of the pension obligation are determined using actuarial valuations.
The actuarial valuation involves making various assumptions. These include the
determination of the discount rates, expected rates of return of assets, future salary
increases, mortality rates and future pension increases. Due to the complexity of the
valuation, the underlying assumptions and its long-term nature, defined benefit obligations
are highly sensitive to changes in these assumptions. All assumptions are reviewed at each
reporting date. The net benefit liability as at 31 December 2018 is $XXX (2017: $XXX).
Further details are provided in Note X.
In determining the appropriate discount rate, management considers the interest rates of
high quality corporate bonds in the respective currencies with at least AA rating, with
extrapolated maturities corresponding to the expected duration of the defined benefit
obligation. The underlying bonds are further reviewed for quality, and those having
excessive credit spreads are removed from the population of bonds on which the discount
rate is based, on the basis that they do not represent high quality bonds.
The mortality rate is based on publicly available mortality tables for the specific country and
is modified accordingly with estimates of mortality improvements. Future salary increases
and pension increases are based on expected future inflation rates for the specific country.
Further details about the assumptions used are provided in Note X.


Extracts of notes to the financial statements illustrating the disclosures relating to defined benefit plan:
X. Defined benefit plan 

The Group operates two defined benefit pension plans, both of which require contributions to be made to separately administered funds. One provides a pension of 2% of IAS 19.135.a
final salary for each year of service (Singapore plan), while the other provides 2.5% of average salary (US plan). Both benefit plans become vested after five years of IAS 19.139.a.i
service and require contributions to be made to separately administered funds. 
The Group also provides additional post employment healthcare benefits to certain senior employees in Singapore. These benefits are unfunded.
The amount included in the consolidated balance sheet arising from the entity’s obligation in respect of its defined benefit plans is as follows:
Funded pension plans Unfunded

post-employment medical
Singapore plan US plan Total benefits
31 31 31 31 31 31 31 31
December December December December December December December December
2018 2017 2018 2017 2018 2017 2018 2017
$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
Present value of defined benefit

obligation
XXX XXX XXX XXX XXX XXX XXX XXX
Fair value of plan assets (XXX) (XXX) (XXX) (XXX) (XXX) (XXX) – -
XXX (XXX) XXX XXX XXX XXX XXX XXX
Restrictions on asset recognised - XXX - - - XXX -
Net liability arising from defined

benefit obligation XXX (XXX) XXX XXX XXX XXX XXX XXX


X. Defined benefit plan  (continued)
Changes in present value of the defined benefit obligations are as follow:  IAS 19.140.a.ii
IAS 19.141
Funded pension plans Unfunded

post-employment
medical
Singapore plan US plan Total benefits
2018 2017 2018 2017 2018 2017 2018 2017

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
At 1 January XXX XXX XXX XXX XXX XXX XXX XXX

Interest cost XXX XXX XXX XXX XXX XXX - -
Current service cost

Remeasurement
(gains)/losses
Actuarial gains and
losses arising from
changes in
demographic
assumptions (XXX) (XXX) (XXX) (XXX) (XXX) (XXX) (XXX) (XXX)
Actuarial gains and

losses arising from
changes in financial
assumptions
(XXX) (XXX) (XXX) (XXX) (XXX) (XXX) (XXX) (XXX)
Past service cost  XXX XXX XXX XXX XXX XXX - -
(Gains)/Losses on
settlements  (XXX) XXX (XXX) XXX (XXX) XXX XXX XXX
Contributions from
plan participants
- - - - - - XXX XXX
Liabilities extinguished
on settlements
- - (XXX) - (XXX) - - -
Benefits paid
(XXX) (XXX) (XXX) (XXX) (XXX) (XXX) (XXX) (XXX)
Effects of business
combinations and
disposal XXX (XXX) - - XXX (XXX) - -
Exchange differences
At 31 December XXX XXX XXX XXX XXX XXX XXX XXX


Changes in fair value of plan assets are as follow:
IAS 19.140.a.i
IAS 19.141
Funded pension plans
Singapore plan US plan Total
2018 2017 2018 2017 2018 2017

$’000 $’000 $’000 $’000 $’000 $’000
At 1 January XXX XXX XXX XXX XXX XXX

Interest income XXX XXX XXX XXX XXX XXX
Remeasurement
gains/(losses)
Return on plan assets XXX XXX XXX XXX XXX XXX
Contributions by employer XXX - - - XXX -
Contributions from plan

participants XXX XXX XXX XXX - XXX
Benefits paid (XXX) (XXX) (XXX) (XXX) (XXX) (XXX)
Assets distributed on
settlements - - (XXX) - (XXX) -
Effects of business
combinations and disposal XXX (XXX) - - XXX (XXX)
Exchange differences – – XXX (XXX) XXX (XXX)
At 31 December XXX XXX XXX XXX XXX XXX
Changes in the effect of the asset ceiling are as follow: IAS 19.140.a.iii
IAS 19.141
Funded pension
plans
Singapore plan
2018 2017
$’000 $’000
At 1 January XXX -
Interest income XXX -
Remeasurement gains/(losses)
Changes in the effect of
limiting to asset ceiling1 (XXX) XXX
Exchange differences – –
At 31 December - XXX
1
The maximum economic benefit available is a combination of expected refunds from the plan and
reductions in future contributions.


The fair value of plan assets by each class as at the end of the reporting period are as follow: IAS 19.142
Funded pension plans

Singapore plan US plan Total
31 December 31 December 31 December 31 December 31 December 31 December
2018 2017 2018 2017 2018 2017
$’000 $’000 $’000 $’000 $’000 $’000
Cash and cash equivalents XXX XXX XXX XXX XXX XXX
Equity instruments
- Manufacturing XXX XXX XXX XXX XXX XXX
- Financial institutions XXX XXX XXX XXX XXX XXX
- Telecommunications XXX XXX XXX XXX XXX XXX
XXX XXX XXX XXX XXX XXX
Debt instruments
- Government securities XXX XXX XXX XXX XXX XXX
- AAA rated debt securities XXX XXX XXX XXX XXX XXX
- Not rated debt securities XXX XXX XXX XXX XXX XXX
Property
- Singapore XXX XXX XXX XXX XXX XXX
- Australia XXX XXX XXX XXX XXX XXX
Derivatives
- Interest rate swaps XXX XXX XXX XXX XXX XXX
- Forward currency contracts XXX XXX XXX XXX XXX XXX
Asset-backed securities XXX XXX XXX XXX XXX XXX
Structured debts XXX XXX XXX XXX XXX XXX
Fair value of plan assets XXX XXX XXX XXX XXX XXX
All equity and debt instruments held have quoted prices in active market. The remaining plan assets do not have quoted market prices in active market. The plan assets IAS 19.143
include a property occupied by a subsidiary of the Group with a fair value of $XXX (2017: $XXX) and ordinary shares of XYZ Holdings Limited with a fair value of $XXX
(2017: $XXX).


The cost of defined benefit pension plans and other post-employment medical benefits as well as IAS 19.144
the present value of the pension obligation are determined using actuarial valuations. The
actuarial valuation involves making various assumptions. The principal assumptions used in
determining pension and post-employment medical benefit obligations for the defined benefit
plans are shown below:
2018 2017
% %
Discount rates:
Singapore plan/ post employment medical plan XX XX
US plan XX XX
Future salary increases:
Singapore plan XX XX
US plan XX XX
Future pension increases:
Singapore plan XX XX
US plan XX XX
Post retirement mortality for pensioners at 65:
Singapore plan/ post employment medical plan
Male XX XX
Female XX XX
US plan
Male XX XX
Female XX XX
Healthcare cost increase rate: XX XX


The sensitivity analysis below has been determined based on reasonably possible changes of each IAS 19.145
significant assumption on the defined benefit obligation as of the end of the reporting period,
assuming if all other assumptions were held constant: 
31 December 2018
Unfunded
post-
employment
Singapore medical
Increase/(decrease) Plan US Plan benefits
Discount rates +XX basis points (XXX) (XXX) (XXX)
- XX basis points XXX XXX XXX
Future salary increases +XX % XXX XXX XXX
- XX % (XXX) (XXX) (XXX)
Future pension increases +XX % XXX XXX XXX
Post retirement mortality for
pensioners at 65:
Male +XX % XXX XXX XXX
Female +XX % XXX XXX XXX
Healthcare cost increase rate +XX % XXX XXX XXX
The management performed an Asset-Liability Matching Study (ALM) annually. The principal IAS 19.146
technique of the Group’s ALM is to ensure the expected return on assets to be sufficient to
support the desired level of funding arising from the defined benefit plans. The Group’s current
strategic investment strategy consists of 50% of equity instruments, 30% of debt instruments, 15%
of investment properties and 5% of cash. The use of debt instruments in combination with interest
rate swaps will reduce the sensitivities caused by the term of the defined benefit obligation by
25%. 
The Group’s defined benefit pension plans are funded by its subsidiaries. The employees of the IAS 19.147.a
Group contribute 6% of the pensionable salary and the remaining residual contributions are paid
by the subsidiaries of the Group. 
The Group expects to contribute $XXX (2017: $XXX) to the defined benefit pension plans in 2018. IAS 19.147.b
The average duration of the defined benefit obligation at the end of the reporting period is 18.4
years (2017: 17.5 years). IAS 19.147.c

Commentary:
 To meet the disclosure objective of Revised IAS 19 for defined benefit plans, an entity shall IAS 19.136
consider all the following:
(a) the level of detail necessary to satisfy the disclosure requirements,
(b) how much emphasis to place on each of the various requirements,
(c) how much aggregation or disaggregation to undertake; and
(d) whether users of financial statements need additional information to evaluate the
quantitative information disclosed.
If the disclosures provided in accordance with the specific requirements of Revised IAS 19 are IAS 19.137
insufficient to meet the objectives above, the entity shall disclose additional information
necessary to meet those objectives. For example, an entity may present an analysis of the
present value of defined benefit obligation that distinguishes the nature, characteristics and risks
of the obligation. Such a disclosure could distinguish:
- between amounts owing to active members, deferred members, and pensioners
- between vested benefits and accrued but not vested benefits
- between conditional benefits, amounts attributable to future salary increases and other
benefits
An entity shall assess whether all or some disclosures should be disaggregated to distinguish IAS 19.138
plans or groups of plans with materially different risks. For example, an entity may disaggregate
disclosure about plans showing one or more of the following features:
- different geographical locations
- different characteristics such as flat salary pension plans, final salary pension plans or post-
employment medical plans
- different regulatory environments
- different reporting segments
- different funding arrangements (e.g. wholly unfunded, wholly or partly funded)
 When disclosing the characteristics of defined benefit plans and risks associated with them, an IAS 19.139
entity shall disclose:
(a) information about the characteristics including
- the nature of benefits provided by the plan (e.g. final salary defined benefit plan or
contribution-based plan with guarantee).
- a description of the regulatory framework in which the plan operates, for example the
level of any minimum funding requirements, and any effect of the regulatory framework
on the plan, such as the asset ceiling.
- a description of any other entity’s responsibilities for the governance of the plan, for
example responsibilities of trustees or of board members of the plan.
(b) a description of the risks to which the plan exposes the entity, focused on any unusual
entity-specific or plan-specific risks, and of any significant concentrations of risk. For
example, if plan assets are invested primarily in one class of investments, e.g. property, the
plan may expose the entity to a concentration of property market risk.
(c) a description of any plan amendments, curtailments and settlements.
 An entity shall provide reconciliation from the opening balance to the closing balance for any IAS 19.140.b
reimbursement rights and the related obligation, if applicable.

 Past service cost and gains and losses arising from settlements need not be distinguished if they IAS 19.141.d
occur together.
 In the financial statements for periods beginning before 1 January 2015, an entity need not IAS 19.173.b
present comparative information for the disclosures about the sensitivity of the defined benefit
obligation.
 Revised IAS 19 introduces a number of new disclosure requirements. These include:

Sensitivity analysis
- A sensitivity analysis for each significant assumption as of the end of the reporting IAS 19.145.a
period, showing how the defined benefit obligation would have been affected by changes
in the relevant assumption that were reasonably possible at that date.
- The method and assumptions used in preparing the sensitivity analyses and the limitation IAS 19.145.b
of those methods.
- Changes from the previous period in the methods and assumptions used in preparing the IAS 19.145.c
sensitivity analyses, and the reasons for such changes.
Asset-liability matching strategies
- A description of any asset-liability matching strategies used by the plan or the entity, IAS 19.146
including the use of annuities and other techniques, such as longevity swaps, to manage
risk.
Cash flow information
- A description of any funding arrangements, and funding policy that affect future IAS 19.147.a
contributions to the defined benefit plan.
- Expected contributions to the plan for the next annual reporting period. IAS 19.147.b
- Information about the maturity profile of the defined benefit obligation (including, but not IAS 19.147.c
limited to, weighted average duration of the defined benefit obligation).
 Multi-employer plans
In this illustration, we do not illustrate multi-employer plans. If the Group participates in a multi-
employer plan and accounts for that plan as a defined benefit plan, it shall disclose the following IAS 19.33.b
in addition to information required by paragraphs 135-147 of the Revised IAS 19:
(a) a description of the funding arrangements, including the method used to determine the IAS 19.148
entity’s rate of contributions and any minimum funding requirements.
(b) a description of the extent to which the entity can be liable to the plan for other entities’
obligations under the terms and conditions of the multi-employer plan.
(c) a description of any agreed allocation of a deficit or a surplus on:
i. wind-up of the plan; or
ii. the entity’s withdrawal from the plan.
(d) if the entity accounts for that plan as if it were a defined contribution plan, it shall disclose
the following, in addition to the information required by (a) – (c) and instead of the
information required by paragraph 139 to 147 of the Revised IAS 19:
i. the fact that the plan is a defined benefit plan.
ii. the reason why sufficient information is not available to enable the entity to account
for the plan as a defined benefit plan.

 Multi-employer plans (continued)

iii. the expected contributions to the plan for the next annual reporting period. IAS 19.148
iv. information about any deficit or surplus in the plan that may affect the amount of
future contributions, including the basis used to determine that deficit or surplus and
the implications, if any, for the entity.
v. an indication of the level of participation of the entity in the plan compared with other
participating entities. Examples of measures that might provide such an indication
include the entity’s proportion of the total contributions to the plan or the entity’s
proportion of the total number of active members, retired members, and former
members entitled to benefits, if that information is available.
 Defined benefit plans that share risks between entities under common control
IAS 19.149
In this illustration, we do not illustrate defined benefit plans that share risks between entities
under common control. If an entity participates in a defined benefit plan that shares risks
between entities under common control, it shall disclose:
(a) the contractual agreement or stated policy for charging the net defined benefit cost or the
fact that there is no such policy.
(b) the policy for determining the contribution to be paid by the entity.
(c) if the entity accounts for an allocation of the net defined benefit cost as noted in paragraph
41 of Revised IAS 19 , all the information about the plan as a whole required by paragraph
135-147 of Revised IAS 19.
(d) if the entity accounts for the contribution payable for the period as noted in paragraph 41 of
Revised IAS 19 , the information about the plan as a whole required by paragraphs 135 –
137, 142 - 144 and 147 (a) and (b) of Revised IAS 19.
The information required by (c) and (d) can be disclosed by cross-reference to disclosures in IAS 19.150
another group entity’s financial statements if:
(a) that group entity’s financial statements separately identify and disclose the information
required about the plan; and
(b) that group entity’s financial statements are available to users of the financial statements on
the same terms as the financial statements of the entity and at the same time as, or earlier
than, the financial statements of the entity.
 Paragraph 41 of Revised IAS 19 requires an entity participating in a defined benefit plan that IAS 19.41
share risks between entities under common control to obtain information about the plan as a
whole measured in accordance with Revised IAS 19 on the basis of assumptions that apply to the
plan as a whole. If there is a contractual agreement or stated policy for charging to individual
group entities the net defined benefit cost for the plan as a whole measured in accordance with
Revised IAS 19, the entity shall, in its separate or individual financial statements, recognise the
net defined benefit cost so charged. If there is no such agreement or policy, the net defined
benefit cost shall be recognised in the separate or individual financial statements of the group
entity that is legally the sponsoring employer for the plan. The other group entities shall, in their
separate or individual financial statements, recognise a cost equal to their contribution payable
for the period.

Appendix A-3 Hedge accounting

Extracts of summary of significant accounting policies illustrating accounting policies relating to
hedge accounting
X. Summary of significant accounting policies
X.X Hedge accounting
The Group applies hedge accounting for certain hedging relationships which qualify for hedge IFRS 7.21
accounting.
For the purpose of hedge accounting, hedges are classified as:
 fair value hedges when hedging the exposure to changes in fair value of a recognised IFRS 9.6.5.2.a
asset or liability or an unrecognised firm commitment
 cash flow hedges when hedging exposure to variability in cash flows that is either IFRS 9.6.5.2.b
attributable to a particular risk associated with a recognised asset or liability or a highly

probable forecast transaction or the foreign currency risk in an unrecognised firm
commitment; or
 hedges of a net investment in a foreign operation. IFRS 9.6.5.2.c
Fair value hedges
The change in the fair value of a hedging derivative is recognised in profit or loss or other IFRS 9.6.5.8
comprehensive income if the hedging instrument hedges an equity instrument for which the
Group has elected to present changes in fair value in other comprehensive income. The
change in the fair value of the hedged item attributable to the risk hedged is recorded as a part
of the carrying value of the hedged item and is also recognised in profit or loss. The change in
fair value of the hedged item which is an equity instrument for which an entity has elected to
present changes in fair value in other comprehensive income, shall remain in other
comprehensive income.
For fair value hedges relating to items carried at amortised cost, the adjustment to carrying IFRS 9.6.5.10
value is amortised through profit or loss over the remaining term of the hedge using the
effective interest rate method. Effective interest rate amortisation may begin as soon as an
adjustment exists and no later than when the hedged item ceases to be adjusted for changes in
its fair value attributable to the risk being hedged.
For hedged item that is a debt instrument measured at fair value through other IFRS 9.6.5.10
comprehensive, the adjustment to be amortised through profit or loss is the amount that
represents the cumulative gain or loss recognised in other comprehensive income. If the
hedged item is derecognised, the unamortised fair value is recognised immediately in profit or
loss.
IFRS 9.6.5.9
When an unrecognised firm commitment is designated as a hedged item, the subsequent
cumulative change in the fair value of the firm commitment attributable to the hedged risk is
recognised as an asset or liability to include the cumulative change in fair value of the hedged
item that was recognised in the balance sheet.


hedge accounting
X.X Hedge accounting (continued)
Cash flow hedges

The effective portion of the gain or loss on the hedging instrument is recognised in other IFRS 9.6.5.11b and c
comprehensive income, while any ineffective portion is recognised immediately in profit or
loss.
The Group uses forward currency contracts as hedges of its exposure to foreign currency risk
in forecasted transactions and firm commitments, as well as forward commodity contracts for
its exposure to volatility in the commodity prices.
Amounts recognised as other comprehensive income are transferred to profit or loss when the IFRS 9.5.11.d
hedged transaction affects profit or loss. Where the hedged item is the cost of a non-financial
asset or non-financial liability, the amounts recognised as other comprehensive income are
transferred to the initial carrying amount of the non-financial asset or liability.
When a cash flow hedge is discontinued, the cumulative gain or loss previously recognised in IFRS 9.6.5.12
other comprehensive income will remain in the cash flow hedge reserve until the future cash
flows occur if the hedged future cash flows are still expected to occur or reclassified to profit
or loss immediately if the hedged furture cash flows are no longer expected to occur.
Hedges of a net investment
Hedges of a net investment in a foreign operation, including a hedge of a monetary item that is IFRS 9.6.5.13 and
accounted for as part of the net investment, are accounted for in a way similar to cash flow 14
hedges. Gains or losses on the hedging instrument relating to the effective portion of the
hedge are recognised as other comprehensive income while any gains or losses relating to the
ineffective portion are recognised in profit or loss. On disposal of the foreign operation, the
cumulative value of any such gains or losses recorded in equity is transferred to profit or loss.
Time value of options
When option contracts are used to hedge forecast transactions, the Group designates only the IFRS 9.6.5.15
intrinsic value of the option contract as the hedging instrument.
IFRS 9.6.5.15
The change in the fair value of the time value of the option contracts that relate to the hedge
item are recognised in other comprehensive income. The cumulative change in fair value
arising from the time value of option accumulated in equity are subsequently recognised:
- as initial cost or carrying amount of the asset or liability if the hedged item subsequently
results in the recognition of a non-financial asset or a non-financial liability, or a firm
commitment for a non-financial asset or a non-financial liability for which fair value hedge
accounting is applied; or
- as a reclassification adjustment to the profit or loss when the hedged expected future
cash flows affect the profit or loss.


hedge accounting
X.X Hedge accounting (continued)
Forward elements of forward contracts

When forward contracts are used to hedge forecast transactions, the Group designates only IFRS 9.6.5.16
the spot element of the forward contracts as the hedging instrument.
The Group elects for each hedge designation, whether the change in the fair value of the IFRS 9R.B6.5.34
forward elements of forward contracts that relate to the hedge item are recognised directly in
profit or loss, or in other comprehensive income with the cumulative change in fair value
accumulated in equity being subsequently recognised:
- as initial cost or carrying amount of the asset or liability if the hedged item subsequently
results in the recognition of a non-financial asset or a non-financial liability, or a firm
commitment for a non-financial asset or a non-financial liability for which fair value hedge
accounting is applied; or
- as a reclassification adjustment to the profit or loss when the hedged expected future
cash flows affect the profit or loss.


Extracts of notes to the financial statements illustrating the disclosures of risk management
strategy:
X. Hedging activities
X.X Financial risk management objectives and policies 
The Group and the Company are exposed to financial risks from its operations and the use of IFRS 7.21A
financial instruments. The board of directors reviews and agrees on policies and procedures
for the management of these risks, which are executed by the Chief Financial Officer, Head of
Treasury and Head of Credit Control. The Audit Committee provides independent oversight to
the effectiveness of the risk management process.
The Group’s activities expose it to foreign currency risk and commodity risk. In order to
minimise any adverse effects on the financial performance of the Group, derivative financial
instruments, such as foreign exchange forward contracts, foreign currency option contracts
and commodity forward contracts are used to hedge certain foreign currency risk exposures
and commodity price exposures. In addition, the Group is also exposed to changes in market
interest rates as most of the Group’s borrowings are fixed interest rates borrowings. It is the
Group’s policy that no trading in derivatives for speculative purposes may be undertaken.
The following are details regarding the Group’s and Company’s exposure to the above
mentioned financial risks and the objectives, policies and processes for the management of
these risks.
Commentary:
Hedge accounting
 Hedge accounting disclosures shall provide information about: IFRS 7.21A
(a) an entity’s risk management strategy and how it is applied to manage risk;
(b) how the entity’s hedging activities may affect the amount, timing and uncertainty of its
future cash flows; and
(c) the effect that hedge accounting has had on the entity’s statement of financial position,
statement of comprehensive income and statement of changes in equity
IFRS 7.21B
The required disclosures for hedge accounting are required to be presented in a single note or
separate section on its financial statements. However, an entity need not duplicate information
that is already presented elsewhere, provided that the information is incorporated by cross-
reference from the financial statements to some other statements such as management
commentary or risk report that is available to users of the financial statements on the same terms
as the financial statements and at the same time. Without the information incorporated by cross-
reference, the financial statements are incomplete.
IFRS 7.21C
 IFRS 7 requires each entity to determine each risk category on the basis of risk exposures an
entity decides to hedge and for which hedge accounting is applied and determine risk categories
consistently for all hedge accounting disclosures.
To meet the objectives in , an entity shall determine how much detail to disclose, how much IFRS 7.21D
emphasis is place on different aspects of the disclosure requirements, the appropriate level of
aggregation or disaggregation, and whether users of financial statements need additional
explanation to evaluate the quantitative information disclosed. However, an entity shall use the
same level of aggregation or disaggregation it uses for disclosure requirements of related
information in IFRS 7 and IFRS 13.


Extracts of notes to the financial statements illustrating the disclosures of fair value hedge
accounting
X. Hedging activities 
X.X Fair value hedges 

IFRS 7.22A
Interest rate risk is the risk that the fair value or future cash flows of the Group’s and the
Company’s financial instruments will fluctuate because of changes in market interest rates. The
Group’s and the Company’s exposure to interest rate risk arise primarily from their loans and
borrowings, interest-bearing loans given to related parties and investments in debt securities.
The Group has a $XXX X.XX% fixed rate secured borrowings. Changes in market interest rate
expose the Group to fair value risk. The Board’s risk management strategy is to hedge all its
exposure to market interest rate movement for the entire term of the borrowings. The objective of
the hedge is to designate an interest rate swap as a fair value hedge of a $XXX fixed rate
borrowings.
To manage the fair value exposure arising from the fixed rate loan, the Group entered into an IFRS 7.22B.a
interest rate swap agreement with a notional amount of $XXX whereby the Group receives a fixed
rate of interest of X.XX% and pays a variable rate equal to SIBOR+X% on the notional amount.
IFRS 7.22B.b
The Group determines the economic relationship between the fixed rate borrowings and the
interest rate swap by matching the critical terms of the hedging instrument with the terms of the
hedged item. The hedge ratio is determined to be 1:1. There were no expected sources of IFRS 7.22B.c
ineffectiveness on the Group’s fair value hedge the critical terms of the interest rate swap match
exactly with the terms of the hedged item,
The effects of applying hedge accounting on the Group’s balance sheet and profit or loss are as
follows:
Fair value hedge 31 December 2018

Hedged item X.XX% fixed rate borrowings
Carrying amount of hedged item XXX IFRS 7.24B.a.i
Maturity date December 20X7

IFRS 7.24B.a.ii
Accumulated fair value adjustments on the hedged item XXX
Line item in the balance sheet that includes the hedged item Non-current bank borrowings IFRS 7.24B.a.iii
Hedging instrument Receive fixed/pay variable IFRS 7.22B.a

interest rate swap
IFRS 7.24A.a
Carrying amount XXX
Line item in the balance sheet that includes the hedging
IFRS 7.24A.b
instruments Derivative financial asset
Nominal amount XXX IFRS 7.24A.d
Weighted average hedged rate for the year X.XX IFRS 7.23B.b


Extracts of notes to the financial statements illustrating the disclosures of cash flow hedge
accounting
X. Hedging activities  (continued)
X.X Cash flow hedges 
Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will IFRS 7.22A
fluctuate because of changes in foreign exchange rates. The Group is exposed to foreign
exchange risk arising from foreign currency transactions, primarily with respect to the US
dollar and the British pound. Foreign exchange risk arises from future transactions and
recognised assets and liabilities denominated in a currency that is not the functional currency
of the companies within the Group.
The Group manages its foreign currency risk by entering into foreign currency forward
contracts for its highly probable sales and purchases. The Group’s strategy is to minimise the
volatility of SGD currency cost of highly probable sales and purchases of inventory. These
forecast transactions are highly probable, and the Group’s objective is to hedge 25% of the
Group’s total expected sales and about 65% of its total expected purchases, for which firm
commitments existed at the end of the reporting period, extending to March 2019.
The Group uses foreign currency forward contracts to hedge its exposure to foreign currency IFRS 7.22B.a
risk. The Group designates the spot component of the foreign currency forward contract to
hedge forecast sales in the United States and forecast purchases in the United Kingdom.
The terms of the foreign currency forward contracts have been negotiated for the expected IFRS 7.22B.b
highly probable forecast transactions. If changes in circumstances affect the terms of the
hedged item such that the critical terms no longer match exactly with the critical terms of the
hedging instrument, the Group uses the hypothetical derivative method to assess IFRS 7.22B.c
effectiveness. The hedge ratio is determined to be 1:1.
Ineffectiveness is recognised on a cash flow hedge when the cumulative change in the
designated component value of the hedging instrument exceeds on an absolute basis the
change in value of the hedged item attributable to the hedged risk.
In hedges of the above foreign currency sales and foreign currency purchases, the expected IFRS 7.23D
sources of hedge ineffectiveness emerge when differences arise between the credit risk
inherent within the hedged item and the hedging instrument.
Other sources of hedge ineffectiveness may emerge if the timing of the transaction changes IFRS 7.23E
from what was originally estimated.


accounting
X.X Cash flow hedges  (continued)

The effects of applying hedge accounting for expected future sales on the Group’s balance
sheet and profit or loss are as follows:
Cash flow hedge 31 December 2018
Hedged item Hedge of 25% of 3

months future sales IFRS 7.24B.b.i
Change in value of the hedge item used as the basis for XXX
recognising hedge ineffectiveness for the period IFRS 7.24B.b.ii
Balances in the cash flow hedge reserve XXX
Hedging instrument Foreign currency IFRS 7.22B.a

forward contract
Maturity date March 20X7 IFRS 7.24A.a
Carrying amount XXX
Line item in the balance sheet that includes the hedged item Derivative financial IFRS 7.24A.b
liabilities IFRS 7.24A.c
Change in fair value used for measuring ineffectiveness for XXX

the period IFRS 7.24A.d
Notional amount XXX IFRS 7.24C.b.i
Hedging gains or losses for the period recognised in OCI XXX IFRS 7.24C.b.ii
Hedge ineffectiveness recognised in profit or loss XXX IFRS 7.24C.b.iii
Line item in the income statement which includes the hedge Other expenses
ineffectiveness IFRS 7.24C.b.iv
Amount reclassified from OCI to profit or loss XXX IFRS 7.24C.b.v
Line item in the income statement which includes the Revenue
reclassification adjustment IFRS 7.23B.b
Weighted average hedged rate for the year X.XX


accounting

The effects of applying hedge accounting for expected future purchases on the Group’s
balance sheet and profit or loss are as follows:
Hedged item Hedge of 65% of 3

months future
purchases
Change in value of the hedge item used as the basis for XXX IFRS 7.24B.b.i
recognising hedge ineffectiveness for the period
Balances in the cash flow hedge reserve XXX IFRS 7.24B.b.ii
Hedging instrument Foreign currency

forward contract IFRS 7.22B.a
Maturity date March 20X7

Carrying amount XXX IFRS 7.24A.a
Line item in the balance sheet that includes the hedged item Derivative financial
IFRS 7.24A.b
liabilities
Change in fair value used for measuring ineffectiveness for the XXX IFRS 7.24A.c
period
Notional amount XXX IFRS 7.24A.d
IFRS 7.24C.b.i
Hedging gains or losses for the period recognised in OCI XXX
IFRS 7.24C.b.ii
Hedge ineffectiveness recognised in profit or loss XXX
Line item in the income statement which includes the hedge Other expenses IFRS 7.24C.b.iii
ineffectiveness
Amount reclassified from OCI to profit or loss XXX IFRS 7.24C.b.iv
Line item in the income statement which includes the Cost of sales IFRS 7.24C.b.v
reclassification adjustment
Weighted average hedged rate for the year X.XX IFRS 7.23B.b


accounting
Commodity price risk

IFRS 7.22A
The Group purchases copper on an ongoing basis as its operating activities in the electronic
division require a continuous supply of copper for the production of its electronic devices. The
increased volatility in copper price over the past 12 months has led to the Board’s decision to
enter into commodity forward contracts to hedge its exposure to cooper’s price volatility.
Hedging the price volatility of forecast copper purchases is in accordance with the risk
management strategy outlined by the Board of Directors.
IFRS 7.22B.a
The Group’s objective is to hedge all its copper purchases for the next 12 months based on
existing purchase agreements. The Group purchases commodity forward contracts to hedge
the commodity risk. These forward contracts, which commenced on 1 July 2018, are expected
to reduce the volatility attributable to price fluctuations of copper. The Group designated only
the spot-to-spot movement of the entire commodity purchase price as the hedged risk. The
forward points of the commodity forward contracts are therefore excluded from the hedge
designation.
IFRS 7.22B.b
The terms of the commodity forward contracts have been negotiated for the expected highly
probable forecast transactions. If changes in circumstances affect the terms of the hedged
item such that the critical terms no longer match exactly with the critical terms of the hedging
IFRS 7.22B.c
instrument, the Group uses the hypothetical derivative method to assess effectiveness. The
hedge ratio is determined to be 1:1.
IFRS 7.23D
In hedges of the commodity purchases, the expected sources of hedge ineffectiveness emerge
when differences arise between the credit risk inherent within the hedged item and the
hedging instrument.
IFRS 7.23E
Other sources of hedge ineffectiveness may emerge if the timing of the transaction changes
from what was originally estimated.


accounting
Commodity price risk

The effects of applying hedge accounting on the Group’s balance sheet and profit or loss are
as follows:
Hedged item Future quarterly copper

purchases
IFRS 7.24B.b.i
Change in value of the hedge item used as the basis for XXX
IFRS 7.24B.b.ii
Balances in the cash flow hedge reserve XXX
IFRS 7.22B.a
Hedging instrument Commodity forward
contract
Maturity date 30th June 2019
IFRS 7.24A.a
Carrying amount XXX
Line item in the balance sheet that includes the hedged item Derivative financial IFRS 7.24A.b
liabilities
IFRS 7.24A.c
Change in fair value used for measuring ineffectiveness for XXX
the period IFRS 7.24A.d
Notional amount XXX
IFRS 7.24C.b.i
Hedging gains or losses for the period recognised in OCI XXX
IFRS 7.24C.b.ii
Hedge ineffectiveness recognised in profit or loss XXX
IFRS 7.24C.b.iii
Line item in the income statement which includes the hedge Other expenses
ineffectiveness IFRS 7.24C.b.iv
Amount reclassified from OCI to profit or loss XXX
IFRS 7.24C.b.v
Line item in the income statement which includes the Cost of sales
reclassification adjustment
IFRS 7.23B.b
Weighted average hedged rate for the year X.XX


Extracts of notes to the financial statements illustrating the disclosures of hedge of net
investments in foreign operations
X.X Hedge of net investments in foreign operations 
Included in loans at 31 December 2018 was a borrowing of USDXXX which has been IFRS 7.22A
designated as a hedge of the net investment in the two subsidiaries in the United States, XX
Inc. and XXX Inc. This borrowing is being used to hedge the Group’s exposure to foreign
exchange risk on these investments.
IFRS 7.22B.b
The Group’s objective is to hedge the foreign currency exposure of both the investments in
foreign subsidiaries. Gains or losses on the retranslation of this borrowing are transferred to
other comprehensive income to offset any gains or losses on translation of the net
investments in the subsidiaries. The nominal amount of the USD borrowings approximates the
cost of investments in the subsidiaries. The hedge is determined to be 1:1 and the hedge is IFRS 7.22B.c
expected to be highly effective.
Hedge of net investments 31 December 2018
Hedged item Net investment in two

subsidiaries XX Inc. and
XXX Inc.
Change in value of the hedge item used as the basis for XXX IFRS 7.24B.b.i
Balances in the foreign currency translation reserve XXX IFRS 7.24B.b.ii
Hedging instrument USD borrowings IFRS 7.22B.a

Carrying amount XXX IFRS 7.24A.a
Line item in the balance sheet that includes the hedging Loans and borrowings IFRS 7.24A.b
instruments
Notional amount XXX IFRS 7.24A.d
Hedging gains or losses for the period recognised in OCI XXX IFRS 7.24C.b.i
Weighted average hedged rate for the year X.XX IFRS 7.23B
IFRS 7.24.c


Extracts of notes to the financial statements illustrating the disclosures of hedging activities:
X.X Hedging reserve
The cash flow hedge reserve contains the effective portion of the cash flow hedge IAS 1.79.b
relationships incurred as at the reporting date. $XXX are made up of the net movements in
cash flow hedges and the effective portion of the forward commodity contract, net of tax.
X.X Cost of hedging reserve
The cost of hedging reserve contains cumulative change in fair value of time value of options
and forward element of forward contracts not designated as hedging instruments in hedge
relationships, net of tax.
X.X Foreign currency translation reserve
The foreign currency translation reserve represents exchange differences arising from the
translation of the financial statements of foreign operations whose functional currencies are
different from that of the Group’s presentation currency and the gains or losses arising from
foreign exchange revaluation of borrowing used as hedging instrument in a net investment
hedge.
X.X Components of other comprehensive income
Group
Foreign
Cost of currency
Hedging hedging translation
reserve reserve reserve
$’000 $’000 $’000
Opening balance XXX XXX XXX
IFRS 7.24E.a
Cash flow hedges
(a) Foreign currency risk IFRS 7.24E.b
Effective portion of changes in fair value of hedging instruments IFRS 7.24E.c
- USD/SGD forecast sales XXX - -
- GBP/SGD forecast purchases XXX - -
Net amount reclassified to profit or loss (XXX)
(b) Commodity risk
Effective portion of changes in fair value of hedging instruments
- Forward commodity contract XXX - -
Net amount reclassified to profit or loss (XXX) - -
Cost of hedging reserves
Fair value changes
- Time value of options - XXX -
- Forward elements of forward contracts - XXX -
Net amount reclassified to profit or loss for
- Time value of options - (XXX) -
- Forward elements of forward contracts - (XXX) -
Hedge of net investment in foreign operations
USD foreign denominated borrowings - - XXX
Foreign currency translation - - (XXX)
Closing balance XXX XXX XXX


Commentary:
The risk management strategy
 An entity shall explain its risk management strategy for each risk, category of risk exposures that IFRS 7.22A, 22B
it decides to hedge and for which hedge accounting is applied. This explanation should enable
users of financial statements to evaluate:
(a) How each risk arises
(b) How the entity manages each risk; this includes whether the entity hedges an item in its
entirety for all risks or hedges a risk component (or components) of an item and why
(c) The extent of risk exposures that the entity manages
To meet the requirements above, the information should include a description of
(a) the hedging instruments that are used (and how they are used) to hedge risk exposures;
(b) how the entity determines the economic relationship between the hedged item and the
hedging instrument for the purpose of assessing hedge effectiveness; and
(c) how the entity establishes the hedge ratio and what the sources of hedge ineffectiveness are.
 In this illustration, the Group does not designate a specific risk component as hedged item. If the IFRS 7.22C
group designates a specific risk component as a hedged item, the Group shall provide the
following qualitative and quantitative information about:
(a) how the entity determined the risk component that is designated as the hedged item
(including a description of the nature of the relationship between the risk component and the
item as a whole); and
(b) how the risk component relates to the item in its entirety.
 If the Group has situations in which an entity frequently resets (i.e. discontinues and restarts) IFRS 7.23C
hedging relationships because both the hedging instrument and the hedged item frequently
change (i.e. the entity uses a dynamic process in which both the exposure and the hedging
instruments used to manage that exposure do not remain the same for long, the entity:
(a) is exempt from providing the disclosures required by paragraph 23A and 23B of IFRS 7.
(b) shall disclose:
(i) information about what the ultimate risk management strategy is in relation to those
hedging relationships
(ii) a description of how its risk management strategy by using the hedge accounting and
designating those particular hedging relationships; and
(iii) an indication of how frequently the hedging relationships are discontinued and
restarted as part of the entity’s process in relation to those hedging relationships
Fair value hedges
IFRS 7R.24B.a.v
 In this illustration, the Group does not have any hedged item that have ceased to be adjusted for
hedging gains and losses.
If the Group has any hedged item that has ceased to be adjusted for hedging gains and losses, it
shall disclose the accumulated amount of fair value hedge adjustments on the hedged item
remaining in the balance sheet.


Commentary:
Fair value hedges
 In this illustration, the Group does not expect hedge ineffectiveness arising from its fair value
hedge.
If the Group expects hedge ineffectiveness arising from its fair value hedge, it shall disclose:
(a) the change in fair value of the hedged item used as the basis for recognising hedge IFRS 7.24B.a.iv
ineffectiveness for the period
(b) hedge ineffectiveness – i.e. The difference between the hedging gains or losses of the hedging IFRS 7.24C.a.i
instrument and the hedge item
(c) the line item in the statement of comprehensive income that includes the hedge IFRS 7.24C.a.ii
ineffectiveness.
Cash flow hedges and hedges of a net investment in a foreign operation
 In this illustration, the Group does not have any hedging relationships for which hedge accounting
is no longer applied.
If the Group has any hedging relationships for which hedge accounting is no longer applied, it shall IFRS 7.24B.b.iii
disclose the balances remaining in the cash flow hedge and the foreign currency translation
reserve.
 In this illustration, the Group does not have cash flow hedges for which hedge accounting had been
used in the previous period, but for which the hedged future cash flows are no longer expected to
occur.
If the Group has cash flow hedges for which hedge accounting had been used in the previous
period, but for which the hedged future cash flows are no longer expected to occur, it shall
disclose
- a description of the forecast transaction IFRS 7.23F
- the amount reclassified from the cash flow hedge reserve into profit or loss as a IFRS 7.24C.b.iv
reclassification adjustment.
 In this illustration, the Group does not hedge net positions.
If the Group has hedges of net positions, it shall disclose the hedging gains and losses recognised in
IFRS 7.24C.b.vi
a separate line item in the statement of comprehensive income.
Option to designate a credit exposure as measured at fair value through profit or loss
 If an entity designated a financial instrument, or a proportion of it, as measured at fair value
IFRS 7.24G
through profit or loss because it uses a credit derivative to manage the credit risk of that financial
instrument it shall disclose:
(a) for credit derivatives that have been used to manage the credit risk of financial instruments
designated as measured at fair value through profit or loss in accordance with paragraph
6.7.1 of IFRS 9, a reconciliation of each of the nominal amount and the fair value at the
beginning and at the end of the period;
(b) the gain or loss recognised in profit or loss on designation of a financial instrument, or a
proportion of it, as measured at fair value through profit or loss in accordance with paragraph
6.7.1 of IFRS 9; and
(c) on discontinuation of measuring a financial instrument, or a proportion of it, at fair value
through profit or loss, that financial instrument's fair value that has become the new carrying
amount in accordance with paragraph 6.7.4 of IFRS 9 and the related nominal or principal
amount (except for providing comparative information in accordance with FRS 1, an entity
does not need to continue this disclosure in subsequent periods).



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APAC no. 12001677

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SG - XYZ Holdings (Singapore) Limited 2018. (SECURED)

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Christopher Wong Gajendran Vyapuri

Scope of this publication

What’s new in the 2018 edition

IFRSs vs SFRS(I)and FRS equivalents

IFRS SFRS(I) FRS

IFRIC interpretations vs SFRS(I) interpretations and FRS interpretations equivalents

IFRS SFRS(I) FRS

SIC-7 Introduction of the Euro SFRS(I) INT 1-1 INT FRS 7

Notes to the financial statements (continued)

Notes to the financial statements (continued)

XYZ Holdings (Singapore)

XYZ Holdings (Singapore) Limited

Company secretary SGX 1207.1

Lee Yiew Hong

Share registrar SGX 1207.3

Auditor SGX 713.1

2018 XYZ Holdings (Singapore) Limited | 1

1. Opinion of the directors

2. Directors CA Sch 12.7

3. Arrangements to enable directors to acquire shares and debentures CA Sch.12.8.a

2018 XYZ Holdings (Singapore) Limited | 2

Direct interest Deemed interest

At the At the end of At the At the end of

Ordinary shares of the Company

2018 XYZ Holdings (Singapore) Limited | 3

Expiry date Exercise price (S$) Number of options

Goh Hock Inn 15,000 105,000 (35,000) 70,000

De Silva Elizabeth Frances 22,000 75,000 (15,000) 60,000

Total 37,0001 180,000 (50,000) 130,000

2018 XYZ Holdings (Singapore) Limited | 4

2018 XYZ Holdings (Singapore) Limited | 5

2018 XYZ Holdings (Singapore) Limited | 6

Independent auditor’s report 

Other Information SSA 720.22.a

2018 XYZ Holdings (Singapore) Limited | 7

Independent auditor’s report 

2018 XYZ Holdings (Singapore) Limited | 8

Independent auditor’s report 

2018 XYZ Holdings (Singapore) Limited | 9

Independent auditor’s report 

 Please refer to commentary no. 1 of the directors’ statement.

 Please refer to commentary no. 2 of the directors’ statement.

2018 XYZ Holdings (Singapore) Limited | 10

Consolidated income statement 

(Illustrating the analysis of expenses by function)

Cost of sales (104,271) (112,536) IAS 1.103

Gross profit 32,449 33,067 IAS 1.103

Other items of income  IAS 1.103

Other items of expense 

Finance costs 7 (1,715) (1,512) IAS 1.82.b

Impairment losses on financial assets 8 (195) (425) IAS 1.82.ba

Share of results of joint ventures  151 126 IAS 1.82.c

Income tax expense 10 (1,557) (1,733) IAS 1.82.d, IAS 12.77

Profit for the year  4,956 7,505 IAS 1.81A.a

Diluted 12(a) 22.73 31.19 IAS 33.66 and 67A

Earnings per share (cents per share)

Diluted 12(b) 20.44 30.39 IAS 33.66 and 67A

2018 XYZ Holdings (Singapore) Limited | 11

Consolidated statement of comprehensive income

Consolidated statement of comprehensive income

Net fair value gains on equity instruments at fair value