NOTES TO
FINANCIAL STATEMENTS
December 31, 2015
54
CITIC ENVIROTECH LTD.
Annual Report
2015
1 GENERAL
The Company (Registration No. 200306466G) is incorporated in Republic of Singapore with its
principal place of business at 10 Science Park Road, #01-01 The Alpha, Singapore 117684 and
registered office at 80 Robinson Road, #02-00, Singapore 068898. The Company is listed on the main
board of the Singapore Exchange Securities Trading Limited. The financial statements are expressed
in Singapore dollars.
The principal activities of the Company are that of investment holding company and provision of
environmental engineering services.
The principal activities of the subsidiaries and associates are disclosed in Notes 13 and 14
to the financial statements respectively.
During the year, the Company changed its financial year end from March 31 to December 31 to be
co-terminus with its immediate holding company’s financial year end. The financial year covers the
period from April 1, 2015 to December 31, 2015.
The consolidated financial statements of the Group and statement of financial position and statement
of changes in equity of the Company for the financial year ended December 31, 2015 were
authorised for issue by the Board of Directors on February 29, 2016.
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
2.1 Basis of accounting
The financial statements have been prepared in accordance with the historical cost basis except as
disclosed in the accounting policies below, and are drawn up in accordance with the provisions of the
Singapore Companies Act and Singapore Financial Reporting Standards (“FRS”).
Historical cost is generally based on the fair value of the consideration given in exchange for goods
and services.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date, regardless of whether
that price is directly observable or estimated using another valuation technique. In estimating the
fair value of an asset or a liability, the Group takes into account the characteristics of the asset or
liability which market participants would take into account when pricing the asset or liability at the
measurement date. Fair value for measurement and/or disclosure purposes in these consolidated
financial statements is determined on such a basis, except for share-based payment transactions that
are within the scope of FRS 102
Share-based Payment
, leasing transactions that are within the scope
of FRS 17
Leases
, and measurements that have some similarities to fair value but are not fair value,
such as net realisable value in FRS 2
Inventories
or value in use in FRS 36
Impairment of Assets
.
In addition, for financial reporting purposes, fair value measurements are categorised into Level 1, 2
or 3 based on the degree to which the inputs to the fair value measurements are observable and the
significance of the inputs to the fair value measurement in its entirety, which are described as follows:
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities
that the entity can access at the measurement date;
Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable
for the asset or liability, either directly or indirectly; and
Level 3 inputs are unobservable inputs for the asset or liability.
