0175 Geely Automobile Holdings Limited Annual Report 2011

Annual Report 2011Geely Automobile Holdings LimitedNOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTSFor the year ended 31 December 20111. General Information and Basis of PreparationThe Company is a public listed limited liability company incorporated in the Cayman Islands as an exemptedlimited liability company and its shares are listed on The Stock Exchange of Hong Kong Limited (the “SEHK”). Theaddresses of the registered office and principal place of business of the Company are disclosed in “Directory” tothe annual report. At 31 December 2011, the directors consider the ultimate holding company of the Companyto be Zhejiang Geely Holding Group Company Limited (), which is incorporated in thePeople’s Republic of China (“PRC”).The Company is an investment holding company. The principal activities of the Company’s subsidiaries are setout in note 41 to the consolidated financial statements.The consolidated financial statements for the year ended 31 December 2011 comprise the Company and itssubsidiaries (together referred to as the “Group”) and the Group’s interests in associates.The measurement basis used in the preparation of the consolidated financial statements is the historical costbasis except that the financial instruments classified as available-for-sale or as fair value through profit or loss arestated at their fair value as explained in the accounting policy set out in note 5(g).The consolidated financial statements are presented in Renminbi (“RMB”), which is also the functional currencyof the Company.2. Statement of ComplianceThese consolidated financial statements have been prepared in accordance with Hong Kong Financial ReportingStandards (“HKFRSs”), which collective term includes all applicable individual Hong Kong Financial ReportingStandards, Hong Kong Accounting Standards (“HKASs”), and Interpretations issued by the Hong Kong Instituteof Certified Public Accountants (“HKICPA”), and the disclosure requirements of the Hong Kong CompaniesOrdinance. These consolidated financial statements also comply with the applicable disclosure provisions of theRules Governing the Listing of Securities on the SEHK (the “Listing Rules”). A summary of the significant accountingpolicies adopted by the Group is set out in note 5 below.In the current year, the Group has applied for the first time the following new standards, amendments andinterpretations (the “new HKFRSs”) issued by the HKICPA, which are relevant to and effective for the Group’sfinancial statements for the annual period beginning on 1 January 2011:HKFRSs (Amendments) Improvements to HKFRSs 2010HKAS 24 (Revised)Related Party DisclosuresHKAS 32 (Amendments) Classification of Rights IssuesHK(IFRIC) – Int 19Extinguishing Financial Liabilities with Equity InstrumentsThe adoption of the new HKFRSs had no material impact on how the results and financial position for the currentand prior periods have been prepared and presented.63