2006 Interim Report－A Share.pdf - 中国银行

2. Basis of consolidation
The consolidated financial statements include the accounts of the Bank and its subsidiaries. The significant
subsidiaries of the Bank are presented in Section II, "Subsidiaries".
The Bank fully consolidates its subsidiaries from the date on which the Bank obtains actual control of the subsidiaries
and the Bank de-consolidates them from the date that control ceases to exist. All significant intercompany balances,
intercompany transactions and intercompany unrealised profits or losses are eliminated on consolidation. Minority
interests represent the interests of minority shareholders in the operating results and net assets of the Bank's
subsidiaries.
Accounting policies of subsidiaries have been adjusted where necessary to ensure consistency with the policies
adopted by the Group.
3. Segment Reporting
A business segment is a group of assets and operations engaged in providing products and services that are subject
to risks and returns that are different from those of other business segments. A geographical segment is engaged in
providing products and services within a particular economic environment that are subject to risks and returns that
are different from those of segments operating in other economic environments.
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