Annual Report 2007 - Hmdatalink.com hm datalink

Notes to the consolidated financial statementsfor the year ended 31 December 20074. SIGNIFICANT ACCOUNTING POLICIES (Continued)(l)Equity-settled share-based transactions (Continued)For share options granted to suppliers in exchange for goods or services, they are measured at thefair value of the goods or services received. The fair values of the goods or services are recognised asexpenses immediately, unless the goods or services qualify of recognition as assets. Correspondingadjustments have been made to equity (share options reserve).(m)Retirement benefit costsPayments to the Group’s Mandatory Provident Fund Scheme (“MPF Scheme”) in Hong Kong and thestate-managed retirement benefit scheme in the People’s Republic of China are charged as expensesas they fall due.(n)LeasingLeases are classified as finance leases whenever the terms of the lease transfer substantially all therisks and rewards of ownership to the lessee. All other leases are classified as operating leases.Rentals payable under operating leases are charged to income statement on a straight-line basisover the term of the relevant lease. Benefits received and receivable as an incentive to enter into anoperating lease are recognised as a reduction of rental expense over the lease term on a straight-linebasis.(o)Related partiesA party is related to the Group if:(i)directly, or indirectly through one or more intermediaries, the party controls, is controlledby, or is under common control with, the Group; or has an interest in the Group that gives itsignificant influence over the Group; or has joint control over the Group;(ii)the party is an associate of the Group;(iii)the party is a joint venture in which the Group is a venturer;(iv)the party is a member of the key management personnel of the Group or its shareholders;(v)the party is a close member of the family of any individual referred to in (i) or (iv);GEELY AUTOMOBILE HOLDINGS LIMITED73ANNUAL REPORT 2 0 0 7