United Energy Group Limited - HKExnews

UNITED ENERGY GROUP LIMITED
Notes to the Financial Statements
For the nine months ended 31 December 2009
3. SIGNIFICANT ACCOUNTING POLICIES (Continued)
(aa) Impairment of assets (Continued)
Where an impairment loss subsequently reverses, the carrying amount of the asset or cash-generating
unit is increased to the revised estimate of its recoverable amount, but so that the increased carrying
amount does not exceed the carrying amount that would have been determined (net of amortisation or
depreciation) had no impairment loss been recognised for the asset or cash-generating unit in prior years.
A reversal of an impairment loss is recognised immediately in the consolidated profit or loss, unless the
relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated
as a revaluation increase.
(bb) Provisions and contingent liabilities
Provisions are recognised for liabilities of uncertain timing or amount when the Group has a present legal
or constructive obligation arising as a result of a past event, it is probable that an outflow of economic
benefits will be required to settle the obligation and a reliable estimate can be made. Where the time value
of money is material, provisions are stated at the present value of the expenditures expected to settle the
obligation.
Where it is not probable that an outflow of economic benefits will be required, or the amount cannot be
estimated reliably, the obligation is disclosed as a contingent liability, unless the probability of outflow is
remote. Possible obligations, whose existence will only be confirmed by the occurrence or non-occurrence
of one or more future events are also disclosed as contingent liabilities unless the probability of outflow is
remote.
(cc) Events after the reporting period
Events after the reporting period that provide additional information about the Group’s position at the end
of the reporting period or those that indicate the going concern assumption is not appropriate are adjusting
events and are reflected in the financial statements. Events after the reporting period that are not adjusting
events are disclosed in the notes to the financial statements when material.
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