69
69
2015/2016 ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS
for the financial year ended 31 March 2016
2. BASIS OF PREPARATION (CONTINUED)
(c) Functional and presentation currency
Items included in the financial statements of each entity in the Group are measured using the currency
that best reflects the economic substance of the underlying events and circumstances relevant to that
entity (the “functional currency”).
The financial statements are presented in United States dollars (“US$”), which is the Company’s
functional currency. All financial information presented in US$ has been rounded to the nearest
thousand, unless otherwise stated.
(d) Use of estimates and judgements
The preparation of the financial statements in conformity with FRSs requires management to make
judgements, estimates and assumptions that affect the application of accounting policies and the
reported amounts of assets, liabilities, income and expenses. Actual results may differ from these
estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimates are revised and in any future periods
affected.
Information about estimation uncertainties and critical judgements in applying accounting policies that
have the most significant effect on the amounts recognised in the financial statements or significant
risk of resulting in a material adjustment within the next financial year is included in the following notes:
Note 9 - Impairment assessment, depreciation, useful lives and residual values of vessels
Note 10 - Impairment assessment on goodwill
Note 11 - Impairment assessment on investment in subsidiaries
Note 12 - Impairment assessment on amount due from subsidiaries
Note 13 - Impairment assessment on investment in associated company and joint venture
Note 26 - Valuation of financial instruments
Measurement of fair values
A number of the Group’s accounting policies and disclosures require the measurement of fair values
for both financial and non-financial assets and liabilities.
When measuring the fair value of an asset or a liability, the Group uses market observable data as
far as possible. Fair values are categorised into different levels in a fair value hierarchy based on the
inputs used in the valuation techniques as follows:
