DBS BANK CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2008 All amounts expressed in Rmb unless otherwise stated
[English translation for reference only]
10
2 BASIS OF PREPARATION
2.1 FIRST-TIME ADOPTION OF ACCOUNTING STANDARDS FOR BUSINESS ENTERPRISES
Prior to 1 January 2008, the Bank prepared its statutory financial statements in accordance with “Accounting Standards for Business Enterprises” promulgated by the Ministry of Finance
of the People’s Republic of China “MOF” before 15 February 2006 and the Accounting System for Financial Institutions promulgated by the MOF on 27 November 2001. In
accordance with the Notice of Banking Institutions Adoption of China Accounting Standard issued by CBRC Yin Jian Tong [2007] No. 22 as at 29 September 2007, with effect from 1
January 2008, the Bank adopted the “Accounting Standards for Business Enterprises - Basic Standard” and 38 specific standards promulgated by the MOF on 15 February 2006, their
application guidance and interpretations issued up to date, and other relevant requirements here after collectively referred to as “New CAS”. The financial statements for the year ended
31 December 2008 are the Bank’s first set of financial statements which are prepared under New CAS.
Upon first-time adoption of New CAS on 1 January 2008, the Bank has made retrospective adjustments to its prior period’s financial statements in accordance with CAS 38 – First time
adoption of New CAS and consequently, the comparative financial statements for the period from 26 May 2007 date of conversion to 31 December 2007 the “Period” have been
restated. The major adjustments made to the prior period’s financial statements are as follows:
Owner’s equity as at 26 May 2007
date of conversion
Net profit for the period
Owner’s equity as at 31 December
2007 Amounts reported in 2007
statutory financial statements, after adjusting undistributed
profits to payable to parent company
3,941,037,524 34,452,143 3,975,489,667
Adjustments: - Allowance for impairment losses of
loans and receivables a 5,532,982
38,221,644 43,754,626 - Fair value measurement for financial
assets and financial liabilities at fair value through profit or loss b
- 929,800
929,800 - Adjustment of interest income and
expenses using the effective interest method c
- 2,447,070
2,447,070 - Recognition of deferred tax assets
and liabilities d 76,000,837
6,205,937 82,206,774
Restated amounts 4,022,571,343
75,502,854 4,098,074,197 The net impact on owner’s equity arising from the first time adoption of New CAS at 26 May
2007 date of conversion which amounted to Rmb 22,571,343 was recorded in capital surplus.
DBS BANK CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2008 All amounts expressed in Rmb unless otherwise stated
[English translation for reference only]
11
2 BASIS OF PREPARATION continued
2.1 FIRST-TIME ADOPTION OF ACCOUNTING STANDARDS FOR BUSINESS
