NOTES TO
FINANCIAL STATEMENTS
December 31, 2015
1
GENERAL
The Company (Registration Number: 199308462C) is incorporated in Singapore with its principal place of
business and registered office at 6 Raffles Quay, #25-01, Singapore 048580. The Company is listed on the
Singapore Exchange Securities Trading Limited. The financial statements are expressed in United States dollars.
The principal activities of the Company are the owning and operating of ocean-going ships and the provision
of containerised feeder shipping services.
The principal activities of its subsidiaries and associate are disclosed in Notes 14 and 15 respectively.
The Group operates in South East Asia, Far East, Indian Sub-continent and the Middle East.
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 March 24, 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 accordancewith 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 whichmarket 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 Payments
, 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.
66
FOCUSED & RESILIENT
SAMUDERA SHIPPING LINE LTD
ANNUAL REPORT 2015
