Notes to the Financial Statements (cont’d)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont’d)
New and Revised FRSs, Amendments/Improvements to FRSs and IC Interpretations (“IC Int”) (cont’d)
New and Revised FRSs, Amendments/Improvements to FRSs and IC Int that are issued, not
yet effective and have not been adopted early (cont’d)
Effective for financial periods beginning on or after
IC Int IC Int 9 IC Int 10 IC Int 11 IC Int 12 IC Int 13 IC Int 14
IC Int 15 IC Int 16 IC Int 17
Reassessment of Embedded Derivatives Interim Financial Reporting and Impairment FRS 2 – Group and Treasury Share Transactions Service Concession Arrangements Customer Loyalty Programmes FRS 119 – The Limit on a Defined Benefit Asset, Minimum Funding Requirements and Their Interaction Agreements for the Construction of Real Estate Hedges of a Net Investment in a Foreign Operation Distributions of Non-cash Assets of Owners
1 January 2010 1 January 2010 1 January 2010 1 July 2010 1 January 2010
1 January 2010 1 July 2010 1 July 2010 1 July 2010
The Group and the Company plan to adopt the above FRSs, Amendments to FRSs and Interpretations when they become effective in the respective financial period. The adoption of the above FRSs, Amendments to FRSs and Interpretations upon their initial application are not expected to have any significant impact on the financial statements of the Group and of the Company. The Group and the Company is exempted from disclosing the possible impact, if any, to the financial statements upon application of FRS 7 and FRS 139.
Significant Accounting Policies
The following accounting policies have been used consistently in dealing with items which are considered material in relation to the financial statements:-
Basis of Consolidation
Subsidiaries are entities, controlled by the Group. Control exists when the Group has the ability to exercise its power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. In assessing control, potential voting rights that presently are exercisable are taken into account. Subsidiaries are consolidated using the purchase method of accounting.
Under the purchase method of accounting, the financial statements of subsidiaries are included in the consolidated financial statements from the date of that control commences until the date that control ceases.
Investments in subsidiaries are stated in the Company’s balance sheet at cost less any impairment losses, unless the investment is classified as held for sale (or included in a disposal group that is classified as held for sale).
Annual Report 2009