Annual Report 2012 - Haitian International Holdings Ltd.

Notes to the Consolidated Financial Statements (Continued)
(All amounts in RMB unless otherwise stated)
2. Summary of Significant Accounting Policies (Continued)
2.5 Foreign currency translation (Continued)
(d) Disposal of foreign operation and partial disposal
On the disposal of a foreign operation (that is, a disposal of the Group’s entire interest in a foreign operation,
or a disposal involving loss of control over a subsidiary that includes a foreign operation, a disposal involving
loss of joint control over a jointly controlled entity that includes a foreign operation, or a disposal involving loss
of significant influence over an associate that includes a foreign operation), all of the exchange differences
accumulated in equity in respect of that operation attributable to the equity holders of the Company are
reclassified to profit or loss.
In the case of a partial disposal that does not result in the Group losing control over a subsidiary that includes
a foreign operation, the proportionate share of accumulated exchange differences are re-attributed to noncontrolling
interests and are not recognised in profit or loss. For all other partial disposals (that is, reductions
in the Group’s ownership interest in associates or jointly controlled entities that do not result in the Group
losing significant influence or joint control) the proportionate share of the accumulated exchange difference is
reclassified to profit or loss.
2.6 Property, plant and equipment
Construction-in-progress represents buildings, plant and machinery under construction or pending installation and is
stated at cost less accumulated impairment losses. Cost includes the costs of construction and acquisition. No provision
for depreciation is made on construction-in-progress until such time as the relevant assets are completed and ready
for intended use. When the assets concerned are brought into use, the costs are transferred to property, plant and
equipment and depreciated in accordance with the policy as stated below.
Freehold land is stated at cost less accumulated impairment losses, if any. Cost represents consideration paid for the
purchase of the land. Freehold land is not subject to depreciation.
Other property, plant and equipment are stated at historical cost less accumulated depreciation and accumulated
impairment losses, if any. Historical cost includes expenditure that is directly attributable to the acquisition of the items.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only
when it is probable that future economic benefits associated with the item will flow to the Group and the cost of
the item can be measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and
maintenance are charged in the consolidated income statement during the financial period in which they are incurred.
Depreciation is calculated using the straight-line method to allocate the cost less impairment loss (if any) of the assets,
other than freehold land and construction-in-progress, to their residual value over their estimated useful lives:
Buildings
Plant and machinery
Vehicles
Office equipment
30 years
10-15 years
5 years
5 years
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