DBS Annual Report 2015 120
Notes to the financial statements
These Notes are integral to the financial statements. The consolidated financial statements for the year ended
31 December 2015 were authorised for issue by the Directors on 19 February 2016.
1 Domicile and Activities
The Company, DBS Group Holdings Ltd, is incorporated and domiciled in the Republic of Singapore and has its registered office
at 12 Marina Boulevard, Marina Bay Financial Centre Tower Three, Singapore 018982.
The Company is listed on the Singapore Exchange. The Company is an investment holding, treasury and funding vehicle
for the group. Its main subsidiary is DBS Bank Ltd the Bank, which is wholly owned and engaged in a range of commercial banking
and financial services, principally in Asia.
The financial statements relate to the Company and its subsidiaries the Group and the Group’s interests in associates.
2 Summary of Significant
Accounting Policies
2.1 Basis of preparation
Compliance with Singapore Financial Reporting Standards FRS
The financial statements of the Company and the consolidated financial statements of the Group are prepared in accordance
with Singapore Financial Reporting Standards FRS and related Interpretations promulgated by the Accounting Standards Council
ASC. In accordance with Section 20118 of the Companies Act the Act, the requirements of FRS 39 Financial Instruments: Recognition
and Measurement in respect of loan loss provisioning are modified by the requirements of Notice to Banks No. 612 “Credit Files,
Grading and Provisioning” MAS Notice 612 issued by the Monetary Authority of Singapore. As permitted by Section 20110b of the
Act, the Company’s income statement has not been included in these financial statements.
The financial statements are presented in Singapore dollars and rounded to the nearest million, unless otherwise stated.
Differences between International Financial Reporting Standards IFRS and FRS
Beyond the above modification to FRS related to MAS Notice 612, there are no significant differences between IFRS and FRS in terms of
their application to the Group. The consolidated financial statements and the notes thereon satisfy all necessary disclosures under IFRS
and FRS.
2.2 Significant estimates and judgement
The preparation of financial statements requires management to exercise judgement, use estimates and make assumptions in the
application of policies and in reporting the amounts in the financial statements. Although these estimates are based on management’s
best knowledge of current events and actions, actual results may differ from these estimates. Critical accounting estimates and
assumptions used that are significant to the financial statements, and areas involving a higher degree of judgement and complexity,
are disclosed in Note 3.
2.3 Adoption of new and revised
accounting standards
On 1 January 2015, the Group adopted the following new or revised FRS that are issued by the ASC and relevant for the Group:
The adoption of these FRS has no significant impact on the financial
statements of the Group. In addition to the above, a number of new standards and
amendments to standards are effective for annual periods beginning after 1 January 2015. The Group has not applied these standards or
amended standards in preparing these financial statements. None of them is expected to have a significant effect on the financial
statements of the Group and the Company other than FRS 109.
FRS109: Financial Instruments FRS 109 replaces the existing guidance in FRS 39 Financial
Instruments: Recognition and Measurement. It includes revised guidance on the classification and measurement of financial
instruments and introduces a new expected credit loss model for impairment of financial assets as well as new requirements for
general hedge accounting. The standard is effective for annual reporting periods beginning on or after 1 January 2018. Early
adoption is permitted.
A summary of the most significant group accounting policies is described further below starting with those relating to the entire
financial statements followed by those relating to the income statement, the balance sheet and other specific topics. This does
not reflect the relative importance of these policies to the Group.
A General Accounting Policies
2.4 Group Accounting
