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SUNMOON FOOD COMPANY LIMITED
ANNUAL REPORT 2015
NOTES TO THE
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2015
These notes form an integral part of and should be read in conjunction with the financial statements.
1.
GENERAL CORPORATE INFORMATION
SunMoon Food Company Limited (the “Company”) is a public limited liability company, incorporated and domiciled in
the Republic of Singapore with its registered office address at 1 Scotts Road, #21-07/08/09 Shaw Centre, Singapore
228202 and principal place of business at 30, Toh Guan Road, # 07-07 Singapore 608840. The Company’s registration
number is 198304656K. The Company is listed on the Mainboard of the Singapore Exchange Securities Trading Limited.
The principal activity of the Company is that of an investment holding company.
The principal activities of the subsidiaries are set out in Note 11 to the financial statements.
The statement of financial position of Company and the consolidated financial statements of the Company and its
subsidiaries (the “Group”) for the financial year ended 31 December 2015 were authorised for issue in accordance
with a resolution of the Directors on the date of Directors’ Statement.
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
2.1
Basis of preparation of financial statements
The financial statements have been drawn up in accordance with the provisions of the Singapore Companies
Act, Chapter 50 and Singapore Financial Reporting Standards (“FRS”) including related Interpretations of FRS
(“INT FRS”) and are prepared under the historical cost convention, except as disclosed in the accounting
policies below and on a going concern basis.
As at 31 December 2015, the Company’s current liabilities exceeded its current assets by approximately
$8,283,000. The Directors are of the view that it is appropriate for the financial statements to be prepared
on a going concern basis which contemplates the realisation of assets and liquidation of liabilities in the
ordinary course of business.
The individual financial statements of each Group entity are measured and presented in the currency of
the primary economic environment in which the entity operates (its functional currency). The consolidated
financial statements of the Group and the statement of financial position of the Company are presented in
Singapore dollar (“$”), which is the functional currency of the Company. All values are rounded to the nearest
thousand ($’000) except when otherwise indicated.
The preparation of financial statements in compliance with FRS requires management to make judgements,
estimates and assumptions that affect the Group’s application of accounting policies and reported amounts
of assets, liabilities, revenue and expenses. Although these estimates are based on management’s best
knowledge of current events and actions, actual results may differ from those estimates.
The estimates and underlying assumptions are reviewed on an on-going basis. Revision to accounting estimates
are recognised in the financial year in which the estimate is revised if the revision affects only the financial
year or in the financial year of revision and future financial year if the revision affects both current and future
financial year. The areas where such judgements or estimates have the most significant effect on the financial
statements are disclosed in Note 3.
In the current financial year, the Group has adopted all the new and revised FRS and INT FRS that are relevant
to its operations and effective for the current financial year. The adoption of these new/revised FRS and INT
FRS did not result in substantial changes to the Group’s accounting policies and had no material effect on
the amounts reported for the current or prior years, except as detailed below.
