Annual - Johnson Electric

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44. Effect of adopting new HKFRS NOTES TO THE ACCOUNTS In 2005/06, the Group adopted the new / revised standards and interpretations of HKFRS below, which are relevant to its operations. The comparatives have been amended as required, in accordance with the relevant requirements. HKAS 1 Presentation of Financial Statements HKAS 2 Inventories HKAS 7 Cash Flow Statements HKAS 8 Accounting Policies, Changes in Accounting Estimates and Errors HKAS 10 Events after Balance Sheet Date HKAS 16 Property, Plant and Equipment HKAS 17 Leases HKAS 19 (Amendment) Actuarial gains and losses HKAS 21 The Effects of Changes in Foreign Exchange Rates HKAS 23 Borrowing Costs HKAS 24 Related Party Disclosures HKAS 27 Consolidated and Separate Financial Statements HKAS 28 Investments in Associates HKAS 31 Investments in Joint Ventures HKAS 32 Financial Instruments: Disclosures and Presentation HKAS 33 Earnings per Share HKAS 36 Impairment of Assets HKAS 38 Intangible Assets HKAS 39 Financial Instruments: Recognition and Measurement HKAS 40 Investment Property HKAS-Int 12 Scope of HKAS – Int 12 Consolidation – Special Purpose Entities HKAS-Int 15 Operating Leases – Incentives HKAS-Int 21 Income Taxes – Recovery of Revalued Non-Depreciable Assets HKFRS 2 Share-based Payments HKFRS 3 Business Combinations The adoption of new / revised HKASs 1, 2, 7, 8, 10, 16, 21, 23, 24, 27, 28, 31, 33 and HKAS-Ints 12 & 15 did not result in substantial changes to the Group’s accounting policies. In summary: – HKAS 1 has affected the presentation of minority interest, investment properties, share of net after-tax results of associates and jointly controlled entities and other disclosures. – HKASs 2, 7, 8, 10, 16, 23, 27, 28, 31, 33 and HKAS-Ints 12 and 15 had no material effect on the Group’s policies. – HKAS 21 had no material effect on the Group’s policy. The functional currency of each of the consolidated entities has been re-evaluated based on the guidance to the revised standard. – HKAS 24 has affected the identification of related parties and some other related-party disclosures. Johnson Electric Holdings Limited 109
NOTES TO THE ACCOUNTS 44. Effect of adopting new HKFRS (Cont’d) The adoption of revised HKAS 17 has resulted in a change in the accounting policy relating to the reclassification of leasehold land and land use rights from properties, plant and equipment to operating leases. The up-front prepayments made for the leasehold land and land use rights are expensed in the profit and loss account on a straight-line basis over the period of the lease or where there is impairment, the impairment is expensed in the profit and loss account. In prior years, the leasehold land and land use rights was accounted for at cost less accumulated depreciation and accumulated impairment. The adoption of HKASs 32 and 39 has resulted in a change in the accounting policy relating to the classification of other financial assets at fair value through profit or loss and available-for-sale financial assets. The adoption of revised HKAS 40 has resulted in a change in the accounting policy of which the changes in fair values are recorded in the profit and loss account as part of other gains, net. In prior years, the increases in fair value were credited to the investment properties revaluation reserve. Decreases in fair value were first set off against increases on earlier valuations on a portfolio basis and thereafter expensed in the profit and loss account. The adoption of revised HKAS-Int 21 has resulted in a change in the accounting policy relating to the measurement of deferred tax liabilities arising from the revaluation of investment properties. Such deferred tax liabilities are measured on the basis of tax consequences that would follow from recovery of the carrying amount of that asset through use. In prior years, the carrying amount of that asset was expected to be recovered through sale. The adoption of HKFRS 2 has resulted in a change in the accounting policy for share-based payments. Until 31st March 2005, the provision of share options to employees did not result in an expense in the profit and loss account. Effective from 1st April 2005, the Group expenses the cost of share options in the profit and loss account. As a transitional provision, the cost of share options granted after 7th November 2002 which had not yet vested on 1st April 2005 was expensed retrospectively in the profit and loss account of the respective periods. The early adoption of amendment to HKAS 19 provides an option of recognising actuarial gains and losses in full in the year in which they occur, outside profit and loss account, in reserves. The Group has elected to take the option to recognise all actuarial gains and losses, including those actuarial gains and losses previously included as part of the transitional unrecognised liabilities on initial adoption of SSAP 34, Employee benefits. In prior years, cumulative unrecognised net actuarial gains and losses, to the extent of the amount in excess of 10% of the greater of the present value of the plan obligations and the fair value of plan assets, were recognised in the profit and loss account over the average remaining service lives of employees. This change in accounting policy has been applied restrospectively. The adoption of HKFRS 3, HKAS 36 and HKAS 38 results in a change in the accounting policy for goodwill. Until 31st March 2005, goodwill was: – Amortised on a straight line basis over a period ranging from 5 to 20 years; and – Assessed for an indication of impairment at each balance sheet date. 110 Johnson Electric Holdings Limited
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Annual Report 2006 Johnson Electric
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CORPORATE PROFILE CONTENTS 2 Johnso
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FINANCIAL HIGHLIGHTS FINANCIAL HIGH
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A MESSAGE FROM PATRICK WANG A MESSA
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A MESSAGE FROM PATRICK WANG The acq
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BUSINESS REVIEW AUTOMOTIVE MOTORS G
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BUSINESS REVIEW Power Tools Hand To
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BUSINESS REVIEW JOHNSON ELECTRIC CA
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FINANCIAL REVIEW FINANCIAL REVIEW O
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FINANCIAL REVIEW Group Turnover 18
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FINANCIAL REVIEW Other Gains Other
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FINANCIAL REVIEW Stocks and work in
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FINANCIAL REVIEW At the balance she
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CORPORATE GOVERNANCE REPORT CORPORA
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CORPORATE GOVERNANCE REPORT The com
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CORPORATE GOVERNANCE REPORT In addi
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CORPORATE GOVERNANCE REPORT INTERNA
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CORPORATE GOVERNANCE REPORT Neither
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REPORT OF THE DIRECTORS Directors T
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REPORT OF THE DIRECTORS B SUBSTANTI
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REPORT OF THE DIRECTORS 5. Subscrip
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REPORT OF THE DIRECTORS Public Floa
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BIOGRAPHICAL DETAILS OF DIRECTORS A
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AUDITORS’ REPORT AUDITORS’ REPO
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CONSOLIDATED BALANCE SHEET (cont’
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CONSOLIDATED PROFIT AND LOSS ACCOUN
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CONSOLIDATED CASH FLOW STATEMENT Fo
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Page 75 and 76: NOTES TO THE ACCOUNTS 6. Properties
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Page 85 and 86: NOTES TO THE ACCOUNTS 22. Trade and
Page 87 and 88: NOTES TO THE ACCOUNTS 24. Provision
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Page 95 and 96: NOTES TO THE ACCOUNTS 27. Reserves
Page 97 and 98: NOTES TO THE ACCOUNTS 27. Reserves
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Page 101 and 102: NOTES TO THE ACCOUNTS 32. Employee
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Page 105 and 106: NOTES TO THE ACCOUNTS 39. Contingen
Page 107 and 108: NOTES TO THE ACCOUNTS 41. Cash gene
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Annual - Johnson Electric

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