Creative 2009 Annual Report Download - page 20

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20
CREATIVE฀TECHNOLOGY฀LTD฀AND฀ITS฀SUBSIDIARIES
These notes form an integral part of and should be read in conjunction with the accompanying financial statements.
1. GENERAL INFORMATION
Creative Technology Ltd. (the “Company”) is listed on the Singapore Exchange Securities Trading Limited (“SGX-ST”)
and incorporated and domiciled in Singapore. The address of its registered office is:
31 International Business Park
Creative Resource
Singapore 609921
The principal activities of the Company and its subsidiaries consist of the design, manufacture and distribution of digitised
sound and video boards, computers and related multimedia and personal digital entertainment products.
2. SIGNIFICANT ACCOUNTING POLICIES
2.1 Basis of preparation
These financial statements have been prepared in accordance with Singapore Financial Reporting Standards (“FRS”). The
financial statements have been prepared under the historical cost convention, except as disclosed in the accounting policies
below.
The Group and the Company conduct a substantial portion of its business in United States dollars (“US$” or “$”). All
dollar amounts included in the financial statements and in the notes herein are United States dollars unless designated as
Singapore dollars (“S$”). The Group and the Company operate on a thirteen week calendar closing on the Friday closest
to the natural calendar quarter. The Group’s financial year 2009 ended on 3 July 2009, the Friday nearest to 30 June 2009,
while the prior financial year ended on 27 June 2008. All financial years are described by their natural calendar dates.
The financial statements of the Group and the Company had previously been prepared in accordance with accounting principles
generally accepted in the United States of America (“US GAAP”). The Company’s registration of its shares and reporting
obligations under the United States Securities Exchange Act of 1934 terminated on 13 May 2009. As the Company’s shares
continue to be listed and traded on SGX-ST, the Group and the Company will continue to comply with the continuing listing
requirements and guidelines issued by the SGX-ST and Singapore Companies Act (Cap. 50). FRS 101 “First-time Adoption
of Financial Reporting Standards” has been applied in preparing these financial statements. Accordingly, the Group and the
Company have prepared the financial statements in accordance with FRS and previous financial statements have also been
restated to be in accordance with FRS. Please refer to Note 33 for the effect of changes in accounting framework.
The preparation of financial statements in conformity with FRS requires management to exercise its judgement in the
process of applying the Group’s accounting policies. It also requires the use of certain critical accounting estimates and
assumptions. Areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are
significant to the financial statements, are disclosed in Note 3.
Standard early adopted by the Group
FRS 108, ‘Operating segments’ has been early adopted by the Group in the current financial year. FRS 108 replaces FRS
14, ‘Segment reporting’. The new standard requires a ‘management approach’ under which segment information is presented
on the same basis as that used for internal reporting purposes.
There has been no significant impact on the measurement of the assets and liabilities of the Group or the Company.
NOTES TO THE FINANCIAL STATEMENTS
– For the financial year ended 30 June 2009
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