The following summary explains the Group’s significant accounting policies which have been consistently applied, except where otherwise indicated:

(a) Basis of Accounting

The financial statements are prepared in accordance with the historical cost convention modified by revaluation of certain fixed assets, investment properties and investments in subsidiary and associated companies.

The financial statements are prepared in accordance with Singapore Statements of Accounting Standard (“SAS”).

The financial statements are expressed in Singapore dollars.

(b) Basis of Consolidation

The Group accounts consolidate the accounts of the Company and its subsidiary companies, all of which prepare audited accounts at 31 December. Subsidiary companies are those in which more than 50% of the issued share capital is held or in which the Group has Board control.

The accounts of subsidiary companies acquired or disposed of during the year are included in or excluded from Group figures from the effective dates of acquisition or disposal. Any excess of the cost of investments over the fair value of identifiable net assets acquired is shown as goodwill and is amortized over its estimated useful life of not more than 20 years.

Minority interests are recorded on the basis of their share of the post-acquisition values of the net assets of the non-wholly owned subsidiaries.

(c) Subsidiary Companies

Investments in subsidiary companies are stated in the accounts of the Company at the attributable share of their combined net asset value. Any revaluation surplus or deficit arising each year is transferred direct to capital reserves.