Every Note Counts
N otes to the Financial Statements
Year ended 31 December 2010
These notes form an integral part of the financial statements.
The financial statements were authorised for issue by the Board of Directors on 25 February 2011.
Domicile and activities
PSA International Pte Ltd (the Company) is incorporated in the Republic of Singapore and has its registered office at 460 Alexandra Road, PSA Building, #38-00, Singapore 119963.
The principal activities of the Company are investment holding and the provision of consultancy services on port management, port operations and information technology. The principal activities of the subsidiaries are mainly those of a provider of port and marine services.
The immediate and ultimate holding company during the financial year is Temasek Holdings (Private) Limited, a company incorporated in the Republic of Singapore.
The consolidated financial statements relate to the Company and its subsidiaries (together referred to as the Group) and the Group’s interests in associates and jointly-controlled entities.
Summary of significant accounting policies
Basis of preparation
The financial statements have been prepared in accordance with Singapore Financial Reporting Standards (FRS).
The financial statements have been prepared on the historical cost basis except for certain financial assets and liabilities that are carried at fair value and/or amortised cost as disclosed in the accounting policies set out below.
The financial statements are presented in Singapore dollars which is the Company’s functional currency. All financial information presented in Singapore dollars have been rounded to the nearest thousand, unless otherwise presented.
The preparation of financial statements in conformity with FRSs requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected.
Information about significant areas of estimation, uncertainty and critical judgements in applying accounting policies that have the most significant effect on the amounts recognised in the financial statements is set out in note 3.
In 2010, the Group adopted the following revised FRSs which are relevant to its operations:
FRS 103 Business combinations (2009)
Business combinations are now accounted for using the acquisition method as at the acquisition date (see note 2.2). The change in accounting policy has been applied prospectively to new business combinations occurring on or after 1 January 2010 and has no material impact on the Group’s profit after tax.