2008 Annual Report - Kenford Group Holdings Limited

Notes to the Financial Statements
For the year ended 31 March 2008
4. PRINCIPAL ACCOUNTING POLICIES (Continued)
(s)
Impairment of other assets
At each balance sheet date, the Group reviews the carrying amounts of the following assets to determine whether
there is any indication that those assets have suffered an impairment loss or an impairment loss previously
recognised no longer exists or may have decreased:
• property, plant and equipment;
• payments for leasehold land held for own use under operating leases; and
• investments in subsidiaries.
If the recoverable amount (i.e. the greater of the fair value less costs to sell and value in use) of an asset is estimated
to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An
impairment loss is recognised as an expense immediately, unless the relevant asset is carried at a revalued amount
under another HKFRS, in which case the impairment loss is treated as a revaluation decrease under that HKFRS.
Where an impairment loss subsequently reverses, the carrying amount of the asset 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 had no impairment loss been recognised for the asset in prior years. A reversal of
an impairment loss is recognised as income immediately, unless the relevant asset is carried at a revalued amount
under another HKFRS, in which case the reversal of impairment loss is treated as a revaluation increase under that
HKFRS.
5. TURNOVER
The Group is principally engaged in the design, manufacture and sale of electrical hair care products, electrical health
care products and other small household electrical appliances. Turnover represents the net invoiced value of goods sold
which is the most signifi cant category of revenue during the year.
6. OTHER INCOME AND GAINS
2008 2007
HK$’000
HK$’000
Reimbursement of mould costs 686 3,362
Interest income 1,950 1,607
Gain on foreign currencies contracts – 419
Sample sales 94 237
Compensation received 1,146 686
Sundry income 4,362 1,775
8,238 8,086
Annual Report 2008
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