0175 Geely Automobile Holdings Limited Annual Report 2011

More documents

Recommendations

Info

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
Annual Report 2011Geely Automobile Holdings LimitedNOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTSFor the year ended 31 December 20113. Change in Accounting PolicyDuring the year, the Group changed its accounting policy for government grants. Government grants related toassets are now deducted from the carrying amount of the asset and consequently are recognised in profit or lossover the useful life of the asset by reducing the depreciation expense. Before the change in accounting policy,the government grants related to assets were included in non-current liabilities as deferred government grantsand recognised as subsidy income (included in other income) over the useful life of the assets in the consolidatedincome statement.Management believes that the new classification of deferred government grants gives a more relevant and reliablepresentation of the results and financial position of the Group.The change in accounting policy has been accounted for retrospectively and the consolidated financial statementshave been restated. The effect on the consolidated financial statements is as follows:At 31 December2011 2010RMB’000RMB’000Decrease in property, plant and equipment 372,080 329,256Decrease in trade and other payables 37,720 34,959Decrease in deferred government grants 334,360 294,297For the year ended31 December2011 2010RMB’000RMB’000Decrease in subsidy income from government (included in other income) 40,008 20,335Decrease in depreciation expense (included in cost of sales) 40,008 20,335The change in accounting policy does not affect the profit or loss or the net assets of the Group as at and forthe years ended 31 December 2011 and 2010 and hence does not affect the calculation of earnings per sharefor the years.The 2010 comparatives have been restated in these financial statements to reflect the above adjustments. Thisrestatement would ordinarily require the presentation of a consolidated balance sheet as at 1 January 2010.However, the Group did not have any outstanding government grants related to assets as at 1 January 2010.As a result, the consolidated balance sheet as at 1 January 2010 is not presented as it is unchanged from thatpreviously presented.64
Page 1 and 2:
(Stock Code : 0175)
Page 3 and 4:
KeyFiguresTurnover(RMB’Billion)22
Page 5 and 6:
Annual Report 2011Geely Automobile
Page 7 and 8:
ManagementReportOrganisationChart
Page 9 and 10:
Page 11 and 12:
Page 13 and 14: Annual Report 2011Geely Automobile
Page 29: Annual Report 2011Geely Automobile
Page 54 and 55: Accounts
Page 58 and 59: CONSOLIDATEDSTATEMENT OF COMPREHENS
Page 115 and 116:
Page 117 and 118:
Page 119 and 120:
Page 121 and 122:
Page 123 and 124:
Page 125 and 126:
Page 127 and 128:
Page 129 and 130:
Page 131 and 132:
Page 133 and 134:
show all

0175 Geely Automobile Holdings Limited Annual Report 2011

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?