3. BASIS OF PREPARATION 3.1 Statement of compliance The financial statements have been prepared in accordance with Singapore Financial Reporting Standards (International) (“SFRS(I)”). 3.2 Basis of measurement The financial statements have been prepared on the historical cost basis except as otherwise described in the notes below. 3.3 Functional and presentation currency The financial statements are presented in Singapore dollars (“$”), which is the Company’s functional currency. All financial information presented in Singapore dollars have been rounded to the nearest thousand, unless otherwise stated. 3.4 Use of estimates and judgements The preparation of the financial statements in conformity with SFRS(I) requires management to make judgements, estimates and assumptions about the future 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 and are consistent with Group’s risk management where appropriate. Revisions to accounting estimates are recognised prospectively. Information about critical judgements in applying accounting policies that have the most significant effect on the amounts recognised in the financial statements is included in the following notes: Notes 4.6 and 6 – Classification of investment properties Information about assumptions and estimation uncertainties at the reporting date that have a significant risk of resulting in material adjustment to the carrying amounts of assets and liabilities within the next financial year are included in the following notes: Note 6 – Determination of fair value of investment properties Note 8 – Impairment test: key assumptions underlying recoverable amounts of cash-generating unit (“CGU”) containing goodwill Note 10 – Determination of net realisable value of development properties 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. The management regularly reviews significant unobservable inputs and valuation adjustments. If third party information, such as property valuations, broker quotes or pricing services, is used to measure fair values, then the management assesses and documents the evidence obtained from the third parties to support the conclusion that such valuations meet the requirements of SFRS(I), including the level in the fair value hierarchy in which the valuations should be classified. Significant valuation matters are reported to the Group’s Board of Directors. 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: • Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities. • Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). • Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs). Notes to the Financial Statements Year ended 31 December 2024 170 PERENNIAL HOLDINGS PRIVATE LIMITED
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