Notes to Fina - 星島新聞集團

Notes to Fina
Notes to Financial Statements
31 December 2002
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(continued)
3.
Other investments
Other investments represent club memberships which
are intended to be held for long term purposes. They
are stated at cost less any impairment losses, on an
individual investment basis.
Properties held for sale
Properties held for sale are stated at the lower of
cost, comprising land, construction and borrowing costs
where appropriate, and net realisable value.
Inventories
Inventories are stated at the lower of cost and net
realisable value. Cost is determined on actual cost,
first-in, first-out basis or weighted average basis, where
appropriate and, in the case of work in progress and
finished goods, comprises direct materials, direct labour
and an appropriate proportion of overheads. Net
realisable value is based on estimated selling prices
less any estimated costs to be incurred to completion
and disposal.
Cash and cash equivalents
For the purpose of the consolidated cash flow
statement, cash and cash equivalents comprise cash
on hand and demand deposits, and short term highly
liquid investments which are readily convertible into
known amounts of cash and which are subject to an
insignificant risk of changes in value, and have a short
maturity of generally within three months when
acquired, less bank overdrafts which are repayable on
demand and form an integral part of the Group’s cash
management.
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Global China Group Holdings Limited Annual Report 2002