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40 GoodLand Group Limited
Notes to the Financial Statements
30 September 2012
2 Signifcant Accounting Policies (cont’d)
(a) Basis of Preparation (cont’d)
Adoption of New/Revised FRS (cont’d)
Prior to the adoption of INT FRS 115, revenue from sale of development properties was recognised using the
completion method.
The Group has considered the application of INT FRS 115 and concluded that certain ‘pre-completion’
sale contracts of standard residential properties were, in substance, construction contracts, and the legal
terms are such that the construction represents the continuous transfer of work in progress to the purchaser.
Consequently, the percentage of completed method of revenue recognition has been applied to these
contracts.
The change in accounting policy has been applied retrospectively. The effects on adoption are as follows:
Consolidated balance sheet
At
30 September 2012
S$
At
30 September 2011
S$
At
1 October 2010
S$
Decrease in development properties (6,338,377) (11,297,652) -
Increase in investment in associates 2,949,117 1,079,433 625,515
Increase in trade and other receivables 2,957,212 7,599,898 -
Decrease in deferred tax asset (468,336) (83,194) -
Decrease in trade and other payables (6,258,735) (10,339,827) -
Increase in deferred tax liabilities 551,341 1,108,112 -
Decrease in income tax payable - (62,678) -
Increase in retained profts 4,807,010 6,592,878 625,515
Consolidated statement of
comprehensive income
for year ended 30 September
2012
S$
2011
S$
(Decrease)/increase in revenue (8,723,779) 18,305,336
Decrease/(increase) in cost of sales 4,959,275 (11,297,652)
Increase in share of results of associated companies, net of tax 1,869,684 453,918
Increase in administrative expenses - (365,610)
(Decrease)/increase in proft before income tax (1,894,820) 7,095,992
Decrease/(increase) in income tax expense 108,952 (1,128,629)
(Decrease)/increase in proft for the year (1,785,868) 5,967,363
Other comprehensive income - -
(Decrease)/increase in total comprehensive income for the year (1,785,868) 5,967,363
(Decrease)/increase in proft attributable to:
Equity holders of the Company (1,785,868) 5,967,363
Non-controlling interests - -
(Decrease)/increase in earnings per share:
Basic (cents per share) (0.93) 3.15
Diluted (cents per share) (0.58) 2.30