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AVI-TECH ELECTRONICS LIMITED
| ANNUAL REPORT 2015
NOTES TO
FINANCIAL STATEMENTS
30 June 2015
1 GENERAL
The Company (Registration No. 198105976H) is incorporated in Singapore with its principal place of business
and registered office at 19A Serangoon North Avenue 5, Singapore 554859. The Company is listed on the
mainboard of the Singapore Exchange Securities Trading Limited. The financial statements are expressed
in Singapore dollars, which is the functional currency of the Company and presentation currency for the
consolidated financial statements.
The principal activities of the Company consist of the provision of burn-in and related services, design and
manufacture of burn-in boards and boards related products, engineering services and equipment distribution,
and trading of imaging equipment and energy efficient products. The principal activities of its subsidiaries
are set out in Note 14.
During the financial year ended 30 June 2014, management had decided to restructure the operations for
two of the subsidiaries in the United States of America comprising the Imaging Equipment and Energy
Efficient Products segment of the Group and had started the process to discontinue the operations of these
subsidiaries. During the year, the Group has completed the voluntary liquidation for one of the subsidiaries
and management expects the restructuring exercise for the remaining subsidiary to be completed within the
next twelve months. The assets and liabilities have been presented as held for sale and the results of the
subsidiary have been presented as discontinued operations.
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 30 June 2015 were authorised for issue by
the Board of Directors on 28 September 2015.
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING – The financial statements are prepared in accordance with the historical cost basis,
except as disclosed in the accounting policies below, and are drawn up in accordance with 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 which market
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;
