Singapore Airlines 2001 Annual Report Download - page 69

Download and view the complete annual report

Please find page 69 of the 2001 Singapore Airlines annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 110

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110

67 SIA annual report 00/01
Notes to the Financial Statements
31 March 2001
1 General
The Company is a limited liability company incorporated in the Republic of Singapore which is also the place of domicile. The
Company is a subsidiary company of Temasek Holdings (Private) Limited, incorporated in the Republic of Singapore.
The registered office of the Company is at Airline House, 25 Airline Road, Singapore 819829.
During the financial year, the principal activities of the Group and of the Company consist of air transportation, engineering
services, airport terminal services, training of pilots, air charters and tour wholesaling and related activities.
The Group and the Company had 29,114 and 14,744 employees respectively as of 31 March 2001 (2000: 27,558 and 13,764
employees respectively).
2 Accounting Policies
The main accounting policies of the Group, which have been consistently applied except where indicated otherwise, are described
in the following paragraphs.
(a) Basis of accounting
The financial statements of the Group and of the Company, which are expressed in Singapore dollars, are prepared under the
historical cost convention and in accordance with Singapore Statements of Accounting Standard and applicable requirements of
the Companies Act, Cap.50.
(b) Consolidation
The consolidated financial statements incorporate the financial statements of the Company and all its subsidiary companies for
the financial year ended 31 March. A list of the Group’s subsidiary companies is shown in note 16 to the financial statements.
(c) Subsidiary, joint venture and associated companies
Shares in subsidiary, joint venture and associated companies are stated at cost. Provision is made for any permanent diminution
in value.
An associated company is defined as a company, not being a subsidiary company or joint venture company, in which the Group
has a long-term interest of not less than 20% in the equity and in whose financial and operating policy decisions the Group
exercises significant influence.
The Group’s share of the results of associated companies is included in the consolidated profit and loss account and the Group’s
share of the post-acquisition reserves is added to the value of investments in associated companies shown in the consolidated
balance sheet. These amounts are taken from the latest audited financial statements of the companies concerned, made up as
appropriate, to the end of the financial year, except for Air New Zealand Limited (ANZ) which is listed on the New Zealand
Stock Exchange. Being the first year of acquisition, the consolidated financial statements incorporate ANZ’s unaudited results
from acquisition date to December 2000. Thereafter, the consolidated financial statements will incorporate the Group’s share of
ANZ’s results for the period January to December. A list of the Group’s associated companies is shown in note 17 to the
financial statements.
A joint venture company is defined as a company, not being a subsidiary company, in which the Group has a long-term interest
of not more than 50% in the equity and has joint control of the company’s commercial and financial affairs.
The Group’s share of the consolidated results of the joint venture companies and their subsidiary companies are included in the
consolidated financial statements under the equity method on the same basis as associated companies. A list of the Group’s
joint venture companies is shown in note 18 to the financial statements.