Annual - Johnson Electric

More documents

Recommendations

Info

2. Principal accounting policies (Cont’d) 2.6 FOREIGN CURRENCY TRANSLATION (Cont’d) NOTES TO THE ACCOUNTS On consolidation, exchange differences arising from the translation of the net investment in foreign entities, and of borrowings and other currency instruments designated as hedges of such investments, are taken to equity holders’ equity. When a foreign operation is sold, such exchange differences are recognised in the profit and loss account as part of the gain or loss on sale. Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing rate. 2.7 PROPERTIES, PLANT AND EQUIPMENT Properties, plant and equipment other than investment properties (note 2.8) are stated at cost less accumulated depreciation and accumulated impairment losses. Freehold land is not amortised. No depreciation is provided for assets under construction. Depreciation of other properties, plant and equipment is calculated to write off the cost of assets less accumulated impairment losses on a straight-line basis over their estimated useful lives on the following bases: Buildings on leasehold land The unexpired term of lease Buildings situated on freehold land 25 – 50 years Plant and machinery, equipment, and tools and moulds 2 – 15 years Furniture and fixtures, motor vehicles and Computers 3 – 10 years At each balance sheet date, both internal and external sources of information are considered to assess whether there is any indication that properties, plant and equipment are impaired. If any such indication exists, the recoverable amount of the asset is estimated and where relevant, an impairment loss is recognised to reduce the asset to its recoverable amount. Such impairment losses are recognised in the profit and loss account. The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date. Gains or losses arising from the disposal of properties, plant and equipment are determined as the difference between the net disposal proceeds and the carrying amounts of those assets and are recognised as income or expense in the profit and loss account. Johnson Electric Holdings Limited 61
NOTES TO THE ACCOUNTS 2. Principal accounting policies (Cont’d) 2.8 INVESTMENT PROPERTIES Property that is held for long-term rental yields or for capital appreciation or both, and that is not occupied by the companies in the consolidated Group, is classified as investment property. Investment property comprises land held under operating leases and buildings held under finance leases. Land held under operating leases are classified and accounted for as investment property when the rest of the definition of investment property is met. The operating lease is accounted for as if it were a finance lease. Investment property is measured initially at its cost, including related transaction costs. After initial recognition, investment property is carried at fair value. Fair value is based on active market prices, adjusted, if necessary, for any difference in the nature, location or condition of the specific asset. These valuations are reviewed annually by external valuers. Investment property that is being redeveloped for continuing use as investment property, or for which the market has become less active, continues to be measured at fair value. The fair value of investment property reflects, among other things, rental income from current leases and assumptions about rental income from future leases in the light of current market conditions. Subsequent expenditure is charged to the asset’s carrying amount only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. All other repairs and maintenance costs are expensed in the profit and loss account during the financial period in which they are incurred. Changes in fair values are recognised in the profit and loss account. If an item of properties, plant and equipment becomes an investment property because its use has changed, any difference resulting between the carrying amount and the fair value of this item at the date of transfer is recognised in equity as a revaluation of properties, plant and equipment under HKAS 16. However, if a fair value gain reverses a previous impairment loss, the gain is recognised in the profit and loss account. 2.9 INTANGIBLES (a) Goodwill Goodwill represents the excess of the cost of an acquisition over the fair value of the Group’s share of the net identifiable assets of the acquired subsidiary / associate / jointly controlled entity at the date of acquisition. Goodwill on acquisitions of subsidiaries is included in intangible assets. Goodwill on acquisitions of associates and jointly controlled entities is included in investments in associates and jointly controlled entities. Goodwill is tested annually for impairment and carried at cost less accumulated impairment losses. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold. 62 Johnson Electric Holdings Limited
Page 1 and 2:
Annual Report 2006 Johnson Electric
Page 3 and 4:
CORPORATE PROFILE CONTENTS 2 Johnso
Page 5 and 6:
FINANCIAL HIGHLIGHTS FINANCIAL HIGH
Page 7 and 8:
A MESSAGE FROM PATRICK WANG A MESSA
Page 9 and 10:
A MESSAGE FROM PATRICK WANG The acq
Page 11 and 12: BUSINESS REVIEW AUTOMOTIVE MOTORS G
Page 13 and 14: BUSINESS REVIEW Power Tools Hand To
Page 15 and 16: BUSINESS REVIEW JOHNSON ELECTRIC CA
Page 17 and 18: FINANCIAL REVIEW FINANCIAL REVIEW O
Page 19 and 20: FINANCIAL REVIEW Group Turnover 18
Page 21 and 22: FINANCIAL REVIEW Other Gains Other
Page 23 and 24: FINANCIAL REVIEW Stocks and work in
Page 25 and 26: FINANCIAL REVIEW At the balance she
Page 27 and 28: CORPORATE GOVERNANCE REPORT CORPORA
Page 29 and 30: CORPORATE GOVERNANCE REPORT The com
Page 31 and 32: CORPORATE GOVERNANCE REPORT In addi
Page 33 and 34: CORPORATE GOVERNANCE REPORT INTERNA
Page 35 and 36: CORPORATE GOVERNANCE REPORT Neither
Page 37 and 38: REPORT OF THE DIRECTORS Directors T
Page 39 and 40: REPORT OF THE DIRECTORS B SUBSTANTI
Page 41 and 42: REPORT OF THE DIRECTORS 5. Subscrip
Page 43 and 44: REPORT OF THE DIRECTORS Public Floa
Page 45 and 46: BIOGRAPHICAL DETAILS OF DIRECTORS A
Page 51 and 52: AUDITORS’ REPORT AUDITORS’ REPO
Page 53 and 54: CONSOLIDATED BALANCE SHEET (cont’
Page 55 and 56: CONSOLIDATED PROFIT AND LOSS ACCOUN
Page 57 and 58: CONSOLIDATED CASH FLOW STATEMENT Fo
Page 59 and 60: NOTES TO THE ACCOUNTS NOTES TO THE
Page 61: NOTES TO THE ACCOUNTS 2. Principal
Page 65 and 66: NOTES TO THE ACCOUNTS 2. Principal
Page 71 and 72: NOTES TO THE ACCOUNTS 3. Financial
Page 73 and 74: NOTES TO THE ACCOUNTS 5. Segment in
Page 75 and 76: NOTES TO THE ACCOUNTS 6. Properties
Page 77 and 78: NOTES TO THE ACCOUNTS 9. Intangible
Page 79 and 80: NOTES TO THE ACCOUNTS 11. Jointly c
Page 81 and 82: NOTES TO THE ACCOUNTS 15. Derivativ
Page 83 and 84: NOTES TO THE ACCOUNTS 18. Investmen
Page 85 and 86: NOTES TO THE ACCOUNTS 22. Trade and
Page 87 and 88: NOTES TO THE ACCOUNTS 24. Provision
Page 93 and 94: NOTES TO THE ACCOUNTS 25. Deferred
Page 95 and 96: NOTES TO THE ACCOUNTS 27. Reserves
Page 97 and 98: NOTES TO THE ACCOUNTS 27. Reserves
Page 99 and 100: NOTES TO THE ACCOUNTS 31. Expenses
Page 101 and 102: NOTES TO THE ACCOUNTS 32. Employee
Page 103 and 104: NOTES TO THE ACCOUNTS 34. Income ta
Page 105 and 106: NOTES TO THE ACCOUNTS 39. Contingen
Page 107 and 108: NOTES TO THE ACCOUNTS 41. Cash gene
Page 109 and 110: NOTES TO THE ACCOUNTS 42. Business
Page 111 and 112: NOTES TO THE ACCOUNTS 44. Effect of
Page 113 and 114:
NOTES TO THE ACCOUNTS 44. Effect of
Page 115 and 116:
NOTES TO THE ACCOUNTS 47. Principal
Page 117 and 118:
Page 119 and 120:
Page 121 and 122:
JOHNSON ELECTRIC GROUP TEN-YEAR SUM
show all

Annual - Johnson Electric

Create successful ePaper yourself

Delete template?

Save as template?