Notes to the Financial Statements
for the year ended 31 December 2010
These Notes are integral to the fi nancial statements. The consolidated fi nancial statements for the year ended 31
December 2010 were authorised for issue by the directors on 10 February 2011.
1 DOMICILE AND ACTIVITIES
The Company, DBS Group Holdings Ltd, is incorporated and domiciled in the Republic of Singapore and has its registered
offi ce at 6 Shenton Way, DBS Building Tower One, Singapore 068809.
The Company is listed on the Singapore Exchange. The principal activity of the Company is that of an investment
holding company and the principal activity of its main subsidiary, DBS Bank Ltd the Bank, is the provision of retail,
small and medium-sized enterprise, corporate and investment banking services.
The fi nancial statements relate to the Company and its subsidiaries the Group and the Group’s interests in associates
and joint ventures.
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
2.1 Basis of preparation The consolidated fi nancial statements of the Group are
prepared in accordance with Singapore Financial Reporting Standards FRS including related Interpretations promulgated
by the Accounting Standards Council ASC. In accordance with Section 20119 of the Companies Act the Act, the
requirements of FRS 39 Financial Instruments: Recognition and Measurement in respect of loan loss provisioning are modifi ed
by the requirements of Notice to Banks No. 612 “Credit Files, Grading and Provisioning” issued by the Monetary Authority of
Singapore.
The fi nancial statements of the Company are prepared in accordance with FRS including related Interpretations to FRS
promulgated by the ASC. As permitted by Section 2014B of the Act, the Company’s income statement has not been
included in these fi nancial statements.
The fi nancial statements are presented in Singapore dollars and rounded to the nearest million, unless otherwise stated. They
are prepared on the historical cost convention, except for derivative fi nancial instruments, available-for-sale fi nancial
assets, and fi nancial assets and liabilities carried at fair value through profi t or loss, which have been measured at fair value.
In addition, the carrying amounts of assets and liabilities that are designated as hedged items in a fair value hedge are
adjusted for fair value changes attributable to the hedged risks. The preparation of fi nancial statements in conformity with FRS
requires management to exercise judgement, use estimates and make assumptions that affect the application of policies and
reported amounts of assets, liabilities, income and expenses. 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 signifi cant to the fi nancial statements, and areas involving a higher degree of judgement
and complexity, are disclosed in Note 4.
On 1 January 2010, the Group adopted the new or revised FRS and Interpretations to FRS INT FRS that are applicable in the
current fi nancial year. The fi nancial statements have been prepared in accordance with the relevant transitional provisions
in the respective FRS and INT FRS.
FRS 27: Consolidated and Separate Financial Statements The standard requires the effects of all transactions with
non-controlling interests to be recorded in equity if there is no change in control. Such transactions will have no impact on
goodwill, nor will it give rise to a gain or loss. The standard also specifi es the accounting when control is lost. Any remaining
interest in the entity is re-measured to fair value, and a gain or loss is recognised in profi t or loss.
The changes introduced by FRS 27 must be applied prospectively and will affect future transactions with non-
controlling interests.
FRS 103: Business Combinations The revised FRS 103 introduces a number of changes in the
accounting for business combinations. For example, there is a choice on an acquisition-by-acquisition basis to measure the
non-controlling interest in the acquiree either at fair value or at the non-controlling interest’s proportionate share of the
acquiree’s net assets. All acquisition-related costs are expensed.
The changes introduced by FRS 103 must be applied prospectively and will affect future business combinations.
The following amendments to FRS and INT FRS are of a technical or clarifying nature and their adoption does not have
any material impact on the Group’s fi nancial statements.
FRS 39 Financial Instruments: Recognition and
Amendments Measurement FRS 102
Share-based Payment – Group Cash-settled Amendments
Share-based Payment Transaction General
Improvements to FRS where applicable amendments
INT FRS 117 Distributions of Non-cash Assets to Owners
2.2 Group accounting
