Annual Report 2007 - Hmdatalink.com hm datalink

Notes to the consolidated financial statementsfor the year ended 31 December 20072. STATEMENT OF COMPLIANCE (Continued)The Group has applied the disclosure requirements under HKAS 1 (Amendment) and HKFRS 7 retrospectively.Certain information presented in prior year under the requirements of HKAS 32 in effect at that time has beenremoved and the relevant comparative information based on the requirements of HKAS 1 (Amendment) andHKFRS 7 has been presented for the first time in the current year.3. EFFECTS OF APPLICATION OF HKFRSs NOT YET EFFECTIVEThe Group has not early applied new standards, amendments and interpretations that have been issuedbut are not yet effective. HKAS 1 (revised) (effective from 1 January 2009) affect the presentation of ownerchanges in equity and introduces a statement of comprehensive income. This amendment does not affectthe financial position or results of the Group but will give rise to additional disclosures. The directors of theCompany anticipate that the application of these standards, amendments and interpretations will have nomaterial impact on the results and financial position of the Group.4. SIGNIFICANT ACCOUNTING POLICIESThe consolidated financial statements have been prepared on the historical cost basis except for certainfinancial instruments which are measured at fair values, as explained in the accounting policies set out below.(a)Basis of consolidationThe consolidated financial statements incorporate the financial statements of the Company and itssubsidiaries. A subsidiary is an entity in which the Company, directly or indirectly, has the power togovern the financial and operating policies so as to obtain benefits from its activities.The results of subsidiaries acquired or disposed of during the year are included in the consolidatedincome statement from the effective date of acquisition or up to the effective date of disposal, asappropriate.Where necessary, adjustments are made to the financial statements of the subsidiaries to bring theiraccounting policies in line with those used by other members of the Group.All intra-group transactions, balances, income and expenses are eliminated on consolidation.Minority interests in the net assets of consolidated subsidiaries are presented separately from theGroup’s equity therein. Minority interests in the net assets consist of the amount of those interestsat the date of the original business combination and the minority’s share of changes in equity sincethe date of the combination. Losses applicable to the minority in excess of the minority’s interest inthe subsidiary’s equity are allocated against the interests of the Group except to the extent that theminority has a binding obligation and is able to make an additional investment to cover the losses.GEELY AUTOMOBILE HOLDINGS LIMITED64ANNUAL REPORT 2 0 0 7