2008 Annual Report - Kenford Group Holdings Limited

Notes to the Financial Statements
For the year ended 31 March 2008
2. ADOPTION OF NEW OR REVISED HONG KONG FINANCIAL REPORTING STANDARDS (Continued)
(b) Potential Impact Arising On The New Accounting Standards Not Yet Effective (Continued)
The directors of the Group anticipate that the adoption of the above new or revised HKFRSs does not result in
substantial changes to the Group’s accounting policies except that there will be changes in disclosures required by
HKAS 1 (Revised) and HKFRS 8 in future.
3. BASIS OF PREPARATION
(a)
Statement of compliance
The consolidated fi nancial statements have been prepared in accordance with all applicable Hong Kong Financial
Reporting Standards (“HKFRSs”), Hong Kong Accounting Standards (“HKASs”) and Interpretations (hereinafter
collectively referred to as the “HKFRSs”) issued by the HKICPA. In addition, the consolidated fi nancial statements
include applicable disclosures required by the Rules Governing the Listing of Securities (the “Listing Rules”) on The
Stock Exchange of Hong Kong Limited and by the Hong Kong Companies Ordinance.
(b) Basis of measurement
The fi nancial statements have been prepared under the historical cost basis except for certain leasehold land and
buildings in Hong Kong, buildings in the PRC and fi nancial instruments, which are measured at fair values or
revalued amounts as explained in the accounting policies set out below.
(c)
Use of estimate and judgments
The preparation of fi nancial statements in conformity with HKFRS requires the use of certain critical accounting
estimates. It also requires management to exercise its judgment in the process of applying the Group’s accounting
policies. The areas involving a higher degree of judgment or complexity or areas where assumptions and estimates
are signifi cant to the consolidated fi nancial statements are disclosed in note 32.
(d) Functional and presentation currency
The fi nancial statements are presented in Hong Kong dollars (HK$), which is the same as the functional currency
of the Company.
4. PRINCIPAL ACCOUNTING POLICIES
(a)
Basis of consolidation
Where the Company has the power, either directly or indirectly, to govern the fi nancial and operating policies of
another entity so as to obtain benefi ts from its activities, that entity is classifi ed as a subsidiary. The consolidated
fi nancial statements comprise of the results of the Company and its subsidiaries (“the Group”). Inter-company
transactions and balances between group companies are eliminated in full in preparing the consolidated fi nancial
statements.
On acquisition, the assets and liabilities of the relevant subsidiaries are measured at their fair values at the date of
acquisition. The interest of minority shareholders is stated at the minority’s proportion of the fair values of the assets
and liabilities recognised.
The results of subsidiaries acquired or disposed of during the year are included in the consolidated income
statement from the effective dates of acquisition or up to the effective dates of disposal, as appropriate.
42 KENFORD GROUP HOLDINGS LIMITED