Creative 2014 Annual Report Download - page 23

23
CREATIVE TECHNOLOGY LTD AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
For the nancial year ended 30 June 2014
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
#03-01 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 2014 ended on 27 June 2014, the Friday nearest to 30 June 2014, while the
prior nancial year ended on 28 June 2013. 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 2013
On 1 July 2013, the Group adopted the new or amended FRS and Interpretations to FRS (“INT FRS”) that are mandatory
for application for the nancial year. 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 adoption of these new or amended FRS and INT FRS did not result in substantial changes to the accounting policies
of the Group and the Company and had no material effect on the amounts reported for the current or prior nancial years.
2.2 Group accounting
(a) Subsidiaries
Subsidiaries are entities (including special purpose entities) over which the Group has power to govern the nancial and
operating policies, generally accompanied by a shareholding giving rise to a majority of the voting rights. The existence
and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether the
Group controls another entity.
The purchase method of accounting is used to account for the acquisition of subsidiaries. The cost of an acquisition is measured
as the fair value of the assets given, equity instruments issued or liabilities incurred or assumed at the dates of exchange,