Creative 2010 Annual Report Download - page 23

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CREATIVE TECHNOLOGY LTD AND ITS SUBSIDIARIES
notes to tHe fInAncIAl stAteMents
– For the nancial year ended 30 June 2010
These notes form an integral part of and should be read in conjunction with the accompanying nancial 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 ofce 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 nancial statements have been prepared in accordance with Singapore Financial Reporting Standards (“FRS”). The
nancial 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 nancial 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 nancial year 2010 ended on 2 July 2010, the Friday nearest to 30 June 2010,
while the prior nancial year ended on 3 July 2009. All nancial years are described by their natural calendar dates.
The preparation of nancial 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 signicant to
the nancial statements, are disclosed in Note 3.
Interpretations and amendments to published standards effective in 2010
On 1 July 2009, the Group adopted the new or amended FRS and Interpretations to FRS (“INT FRS”) that are mandatory
for application from that date. Changes to the Group’s accounting policies have been made as required, in accordance with
the transitional provisions in the respective FRS and INT FRS.
The following are the new or revised FRS and INT FRS that are relevant to the Group:
FRS 1 (revised) Presentation of Financial Statements (effective for annual periods beginning on or after 1 January 2009).
The revised standard prohibits the presentation of items of income and expenses (that is, ‘non-owner changes in equity’)
in the statement of changes in equity. All non-owner changes in equity are shown in a performance statement, but entities
can choose whether to present one performance statement (the statement of comprehensive income) or two statements (the
income statement and statement of comprehensive income). The Group has chosen to present two statements. Where
comparative information is restated or reclassied, a restated balance sheet is required to be presented as at the beginning
comparative period. There is no restatement of the balance sheet as at 1 July 2008 in the current nancial year.
FRS 27 (revised) Consolidated and Separate Financial Statements (effective for annual periods beginning on or after 1 July
2009). The revisions to FRS 27 principally change the accounting for transactions with non-controlling interests. As the
changes have been implemented prospectively, no adjustments were necessary to any of the amounts previously recognised