SUNGREEN INTERNATIONAL HOLDINGS LIMITED 綠 陽 國 際 控 股 有 限 公 司

2. PRINCIPAL ACCOUNTING POLICIESThe condensed consolidated financial statements have been prepared on the historical costs basis except for certainproperties and financial instruments, which are measured at fair values.The accounting policies used in the condensed consolidated financial statements are consistent with those followed inthe preparation of the annual financial statements of the Group for the year ended 31 December 2007. Theconsolidated results for the six months ended 30 June 2008 are unaudited but have been reviewed by the Company’saudit committee.In the current period, the Group has applied, for the first time, a number of new International Financial ReportingStandards (‘‘IFRSs’’), International Accounting Standards (‘‘IASs’’) and Interpretations (hereinafter collectivelyreferred to as ‘‘new IFRS’’) issued by the International Accounting Standards Board (the ‘‘IASB’’) and theInternational Financial Reporting Interpretations Committee (‘‘IFRIC’’) of the IASB that are effective for the Group’sfinancial period beginning 1 January 2008. The adoption of the new IFRS has had no material effect on how theresults for the current or prior accounting periods are prepared and presented. Accordingly, no prior period adjustmenthas been required.The Group has not early applied the following new and revised standards, amendments or interpretations that havebeen issued but are not yet effective. The directors of the Company anticipate that the application of these standards,amendments or interpretations will have no material impact on the results and the financial position of the Group.IAS 1 (Revised) Presentation of Financial Statements 1IAS 23 (Revised) Borrowings Costs 1IAS 27 (Revised) Consolidated and Separate Financial Statement 2IAS 32 & 1 Puttable Financial Instruments and Obligations Arising on Liquidation 1(Amendments)IFRS 2Vesting Conditions and Cancellations 1(Amendment)IFRS 3 (Revised) Business Combinations 2IFRS 8 Operating Segments 1IFRIC 13 Customer Loyalty Programmes 3123Effective for annual periods beginning on or after 1 January 2009Effective for annual periods beginning on or after 1 July 2009Effective for annual periods beginning on or after 1 July 2008– 8 –