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BAKER TECHNOLOGY LIMITED ANNUAL REPORT 2012
BAKER TECHNOLOGY LIMITED ANNUAL REPORT 2012
2. Summaryof significant accounting policies (cont’d)
2.3 Basis of consolidation and business combination (cont’d)
(b) Business combinations (cont’d)
Business combinations prior to 1 January 2010
In comparison to the abovementioned requirements, the following differences applied:
– Business combinations are accounted for by applying the purchase method. Transaction costs
directlyattributable to theacquisition formedpart of theacquisition costs. Thenon-controlling interest
(formerly known as minority interest) was measured at the proportionate share of the acquiree’s
identifiable net assets.
– Business combinations achieved in stages were accounted for as separate steps. Adjustments to
those fair values relating to previously held interests are treated as a revaluation and recognised in
equity. Any additional acquired share of interest did not affect previously recognised goodwill.
– When the Group acquired a business, embedded derivatives separated from the host contract
by the acquiree were not reassessed on acquisition unless the business combination resulted in a
change in the terms of the contract that significantly modified the cash flows that otherwise would
have been required under the contract.
– Contingent consideration was recognised if, and only if, the Group had a present obligation, the
economic outflowwas more likely than not and a reliable estimate was determinable. Subsequent
adjustments to the contingent considerationwere recognised as part of goodwill.
2. Summaryof significant accounting policies (cont’d)
2.4 Foreign currency
TheGroup’s consolidated financial statements are presented in SingaporeDollars, which is also theCompany’s
functional currency. Each entity in the Group determines its own functional currency and items included in the
financial statements of each entity aremeasured using that functional currency.
(a) Transactions and balances
Transactions in foreign currencies are measured in the respective functional 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 closing rate of exchange ruling at the balance sheet date. Non-
monetary items that aremeasured 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 datewhen the fair valuewas determined.
Exchange differences arising on the settlement of monetary items or on translatingmonetary items at the
balance sheet date are recognised in profit or loss except for exchange differences arising on monetary
items that form part of theGroup’s net investment in foreign subsidiaries, which 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 theGroup on disposal of
the foreign operation.
(b) Consolidated financial statements
For consolidation purposes, the assets and liabilities of foreign operations are translated into SGD at the
rate of exchange ruling at the balance sheet date and their profit or loss are translated at the weighted
average exchange rates for the year. The exchange differences arising on the translation are taken
directly to a separate component of equity as foreign currency translation reserve. On disposal of a
foreignoperation, the cumulativeamount recognised in foreign currency translation reserve relating to that
particular foreign operation is recognised in the profit or loss.
In the case of a partial disposal without loss of control of a subsidiary that 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.
for the financial year ended 31december 2012
for the financial year ended 31december 2012
notestothe
financialstatements
notestothe
financialstatements
