Annual Report 2012 - HKExnews

Notes to the Consolidated Financial Statements
1 General Information
Focus Media Network Limited (the “Company”) is incorporated in the Cayman Islands as an exempted company with
limited liability under the Companies Law (2010 Revision) of the Cayman Islands. The address of its registered office is
Cricket Square, Hutchins Drive, P.O. Box 2681, Grand Cayman KY1-1111, Cayman Islands and its principal place of
business is 2801, 28th Floor, Citicorp Centre, 18 Whitfield Road, North Point, Hong Kong.
The Company is an investment holding company. The principal activities of the subsidiaries are set out in Note 26 to the
consolidated financial statements.
The Company’s shares are listed on the Growth Enterprise Market of The Stock Exchange of Hong Kong Limited (the “Hong
Kong Stock Exchange”).
These consolidated financial statements are presented in Hong Kong dollars (“HK$”), unless otherwise stated. These
consolidated financial statements have been approved for issue by the Board of Directors on 19 March 2013.
2 Summary of Significant Accounting Policies
The principal accounting policies applied in the preparation of these consolidated financial statements are set out below.
These policies have been consistently applied to all the years presented, unless otherwise stated.
2.1 Basis of preparation
The consolidated financial statements of the Company have been prepared in accordance with Hong Kong Financial
Reporting Standards (“HKFRS”). The consolidated financial statements have been prepared under the historical cost
convention.
The preparation of financial statements in conformity with HKFRS requires the use of certain critical accounting
estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting
policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates
are significant to the consolidated financial statements, are disclosed in Note 4.
Notwithstanding that the Group has total comprehensive loss of HK$26,676,844 and net cash outflow of
HK$7,738,835 for the year ended 31 December 2012, the Group had cash and cash equivalents of HK$53,614,392.
Based on the directors’ review of the Group’s financial position as of 31 December 2012 and cash flow forecast, the
Group is expected to have sufficient financial resources to satisfy its future working capital requirements for the next
twelve months from the date of this report and other financial obligations as and when required. Accordingly, the
directors consider that it is appropriate to prepare the Group’s consolidated financial statements on a going concern
basis.
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FOCUS MEDIA NETWORK LIMITED Annual Report 2012