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NOTES TO THE FINANCIAL STATEMENTS
These notes form an integral part of and should be read in conjunction with the accompanying financial statements.
1 GENERAL
The financial statements of DBS Bank Ltd “DBS Bank” for the year ended December 31, 2004 were approved and authorised for issue by the Board of Directors on February 18, 2005.
The financial statements are expressed in Singapore dollars. DBS Bank is principally engaged in the business of banking including the operations of an Asian Currency Unit under terms and
conditions specified by the Monetary Authority of Singapore. The principal activities of the subsidiary companies of DBS Bank are disclosed in Note 28.2.
DBS Bank is a wholly owned subsidiary of DBS Group Holdings Ltd “DBSH”. The registered office of DBS Bank is located at 6 Shenton Way, DBS Building Tower One,
Singapore 068809.
Pursuant to Section 2013BA of the Singapore Companies Act, DBS Bank is not required to prepare consolidated financial statements. The results of DBS Bank’s subsidiary companies
have been included in the consolidated financial statements of DBSH Group from the date they became subsidiary companies.
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of the significant accounting policies applied by DBS Bank and, except where noted, are consistent with those applied in the previous financial year. The
principal accounting policies adopted in the preparation of these consolidated financial statements are set out below:
2.1 BASIS OF PRESENTATION
2.1.1 These financial statements of DBS Bank are prepared in accordance with the historical cost convention, modified by the revaluation of certain treasury instruments to market value.
The financial statements comply with Singapore Financial Reporting Standards “FRS” including related Interpretations promulgated by the Council on Corporate Disclosure and
Governance “CCDG”.
2.1.2 In July 2004, CCDG adopted the revised FRS 39, “Financial Instruments: Recognition and Measurement” but the Standard will be effective from January 1, 2005. The implementation of
FRS 39 is expected to have a significant impact on certain financial assets and liabilities. An opening adjustment will be required, representing unrealised gains or losses on certain financial
assets and financial liabilities including derivatives to be measured at fair value on January 1, 2005. The differences between carrying amount and fair value will be adjusted to retained
earnings.
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2.1.3 FRS 102, “Share-based Payment” has been adopted by the CCDG during the financial year but the Standard will be effective from January 1, 2005. The Standard requires an expense
to be recognised where DBS Bank buys goods or services in exchange for shares or other equity instruments equity-settled transactions, or in exchange for other assets equivalent in value to a
given number of shares or other equity instruments cash-settled transactions. The main impact of FRS 102 on DBS Bank will be the expensing of such share-based incentives awarded to
employees and directors.
2.1.4 FRS 103, “Business Combinations” has been adopted by the CCDG during the financial year and it applies to business combinations for annual periods beginning on or after July 1,
2004. The effect of the adoption of FRS 103 is that upon acquisition of subsidiaries or business undertakings, DBSH Group will include items like intangible assets and contingent liabilities as
part of the identifiable assets and liabilities acquired, at their fair values as at the acquisition date.
2.2 SUBSIDIARY COMPANIES
