Page 176 - Annual Report 2014

30 Comparative Figures Overview

During the financial year, it was identified that certain cash receipts relating to prior years were erroneously applied as cash Strategy
collections for trade receivables when these were cash receipts for early termination charges billed. The Group’s accounting
policy for early termination charges was to recognise such charges as revenue in the income statement only upon cash
receipts. Billing of such early termination charges were deferred and classified as an offset in the overall trade receivables in the
statement of financial position. Therefore, on cash receipt, the Group should have recognised the revenue previously deferred.
The wrong classification of these cash receipts was due to an error in the system generated report used in identifying and
segregating the cash collections.

Even though the impact of the errors was not material to each corresponding financial year, management has determined the
cumulative effects of the understatement of revenue to be material and decided to make retrospective adjustments to the
comparative information in the financial statements.

As a result, a restatement of the Group’s prior year statements of financial position in relation to trade receivables, provision for Performance
taxation, deferred tax liabilities and retained profits, and a restatement of the Group’s prior year statements of comprehensive
income in relation to total revenue and taxation were made.

Due to the combined billing arrangement provided by the Company for its subsidiaries, the Company’s trade receivables and Governance
amounts due to its respective subsidiaries in the Company’s prior year statements of financial position were also restated.

A summary of the effects of the prior years’ adjustments is as follows: As previously Adjustments As
reported $m restated
Group
31 December 2013 $m $m

Statement of Financial Position 123.5 32.7 156.2 Financials
Trade receivables 71.4 4.4 75.8
Provision for taxation 0.4 128.4
Deferred tax liabilities 128.0
Retained profits 76.7 27.9 104.6

Income Statement 2,359.3 10.3 2,369.6
Total revenue (76.5) (1.5) (78.0)
Taxation

Earnings per share 21.5 0.6 22.1
Basic (cents) 21.4 0.6 22.0
Diluted (cents)

Statement of Comprehensive Income 370.7 8.8 379.5
Profit for the year

Consolidated Cash Flow Statement 447.2 10.3 457.5
Profit before taxation 18.8 (10.3) 8.5
Changes in working capital

Trade receivables

StarHub Ltd | Annual Report 2014 173