2011 Annual Report - TOM Group

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52 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 1 Principal 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. (a) Basis of preparation The consolidated financial statements have been prepared in accordance with Hong Kong Financial Reporting Standards (“HKFRS”) issued by the Hong Kong Institute of Certified Public Accountants (“HKICPA”) and the disclosure requirements of Appendix 16 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “Stock Exchange”). The consolidated financial statements have been prepared under the historical cost convention except that, as set out in note 1(f) below, available-for-sale financial assets are stated at fair value, unless fair value cannot be reliably measured. 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 3. The following amendments to standards are mandatory and relevant to the Group for the financial year beginning 1 January 2011: HKFRSs (Amendments) Improvements to HKFRSs 2010 In the current year, the Group has adopted the amendments to standards that are relevant to the Group’s operations and mandatory for annual periods beginning 1 January 2011. The effect of the adoption of the above amendments to standards beginning 1 January 2011 is not material to the Group’s results of operations or financial position. At the date of authorisation of these financial statements, the following standards, amendments to standards and interpretations were in issue but not yet effective and have not been early adopted by the Group: HKAS 1 (Amendment) (2) HKAS 12 (Amendment) (1) HKAS 19 (Amendment) (2) HKAS 27 (Revised 2011) (2) HKAS 28 (Revised) (2) HKAS 32 (Amendment) (3) HKFRS 1 (Amendment) (1) HKFRS 7 (Amendment) (1) Presentation of Financial Statements Deferred Tax – Recovery of Underlying Assets Employee Benefits Separate Financial Statements Investments in Associates and Joint Ventures Financial Instruments: Presentation – Offsetting Financial Assets and Financial Liabilities Severe Hyperinflation and Removal of Fixed Dates for First-time Adopters Financial Instruments: Disclosures – Transfers of Financial Assets TOM Group Limited
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 1 Principal accounting policies (Continued) (a) Basis of preparation (Continued) HKFRS 7 (Amendment) (2) HKFRS 9 (4) HKFRS 7 and HKFRS 9 (Amendments) (4) HKFRS 10 (2) HKFRS 11 (2) HKFRS 12 (2) HKFRS 13 (2) HK(IFRIC) – Int 20 (2) Financial Instruments: Disclosures – Offsetting Financial Assets and Financial Liabilities Financial Instruments Mandatory Effective Date and Transitions Disclosures Consolidated Financial Statements Joint Arrangements Disclosures of Interests in Other Entities Fair Value Measurements Stripping Costs in the Production Phase of a Surface Mine (1) Effective for the Group for annual periods beginning 1 January 2012 (2) Effective for the Group for annual periods beginning 1 January 2013 (3) Effective for the Group for annual periods beginning 1 January 2014 (4) Effective for the Group for annual periods beginning 1 January 2015 The Group has already commenced an assessment of the impact of these new standards, amendments to standards and interpretations, but is not in a position to state whether these new standards, amendments to standards and interpretations would have a significant impact to its results of operations and financial position. (b) Consolidation The consolidated financial statements include the financial statements of the Company and all of its subsidiaries (including those directly or indirectly held or held through nominee arrangement) made up to 31 December. Subsidiaries are all entities over which the Group has the power to govern the financial and operating policies generally accompanying a shareholding of more than one half of the voting rights. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases. The Group applies the acquisition method to account for business combinations. The consideration transferred for the acquisition of a subsidiary is the fair values of the assets transferred, the liabilities incurred to the former owners of the acquiree and the equity interests issued by the Group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Acquisition-related costs are expensed as incurred. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. On an acquisition-by-acquisition basis, the Group recognises any noncontrolling interest in the acquiree either at fair value or at the non-controlling interest’s proportionate share of the recognised amounts of acquiree’s identified net assets. If the business combination is achieved in stages, the acquirer’s previously held equity interest in the acquiree is remeasured to fair value at the acquisition date through profit or loss. Annual Report 2011 53
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CONTENTS CONTENTS 19 11 21 11 47 37
Page 4 and 5: 2 CORPORATE PROFILE TOM Group Limit
Page 6 and 7: 4 FINANCIAL HIGHLIGHTS For the year
Page 8 and 9: 6 MANAGEMENT’S DISCUSSION AND ANA
Page 10 and 11: 8 MANAGEMENT’S DISCUSSION AND ANA
Page 12 and 13: 10 MANAGEMENT’S DISCUSSION AND AN
Page 14 and 15: 12 DIRECTORS’ PROFILE Ip Tak Chue
Page 16 and 17: 14 CORPORATE GOVERNANCE REPORT The
Page 20 and 21: 18 CORPORATE GOVERNANCE REPORT Upon
Page 26 and 27: 24 CORPORATE GOVERNANCE REPORT Corp
Page 30 and 31: 28 REPORT OF THE DIRECTORS Director
Page 32 and 33: 30 REPORT OF THE DIRECTORS (e) (f)
Page 34 and 35: 32 REPORT OF THE DIRECTORS Director
Page 36 and 37: 34 REPORT OF THE DIRECTORS Interest
Page 38 and 39: 36 REPORT OF THE DIRECTORS Li Ka-Sh
Page 40 and 41: 38 REPORT OF THE DIRECTORS (d) (e)
Page 42 and 43: 40 REPORT OF THE DIRECTORS During t
Page 44 and 45: 42 INDEPENDENT AUDITOR’S REPORT I
Page 46 and 47: 44 CONSOLIDATED INCOME STATEMENT Fo
Page 48 and 49: 46 CONSOLIDATED STATEMENT OF FINANC
Page 50 and 51: 48 STATEMENT OF FINANCIAL POSITION
Page 52 and 53: 50 CONSOLIDATED STATEMENT OF CHANGE
Page 56 and 57: 54 NOTES TO THE CONSOLIDATED FINANC
Page 102 and 103: 100 NOTES TO THE CONSOLIDATED FINAN
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102 NOTES TO THE CONSOLIDATED FINAN
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124 PRINCIPAL SUBSIDIARIES, JOINTLY
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2011 Annual Report - TOM Group

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