Page 103 - ar2013.pdf

NOTES TO THE FINANCIAL STATEMENTS
For the Ànancial year ended 31 December 2013
101
Annual Report 2013
F i nanc i a l Statement s
2. Significant accounting policies (continued)
2.22 Currency translation (continued)
(c) Translation of Group entities’ financial statements
The results and financial position of all the Group entities (none of which has the currency of a
hyperinflationary economy) that have a functional currency different from the presentation currency are
translated into the presentation currency as follows:
(i) Assets and liabilities are translated at the closing exchange rates at the reporting date;
(ii) Income and expenses are translated at average exchange rates (unless the average is not a
reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates,
in which case, income and expenses are translated using the exchange rates at the dates of the
transactions); and
(iii) All resulting currency translation differences are recognised in other comprehensive income and
accumulated in the currency translation reserve. The currency translation differences are reclassified
to the income statement on disposal or partial disposal of the entity giving rise to such reserve.
Goodwill and fair value adjustments arising on the acquisition of foreign operations are treated as assets and
liabilities of the foreign operations and translated at the closing rates at the reporting date.
2.23 Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the key
management whose members are responsible for allocating resources and assessing performance of the operating
segments.
2.24 Cash and cash equivalents
For the purpose of presentation in the consolidated statement of cash flows, cash and cash equivalents include
cash on hand, deposits with financial institutions which are subject to an insignificant risk of change in value and
bank overdrafts and exclude pledged deposits with financial institutions. Bank overdrafts are presented as current
borrowings on the balance sheet.
2.25 Share capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issuance of new ordinary
shares are deducted against the share capital account.
2.26 Dividends to Company’s shareholders
Dividends to the Company’s shareholders are recognised when the dividends are approved for payment.
2.27 Government grants
Grants from the government are recognised as a receivable at their fair value when there is reasonable assurance
that the grant will be received and the Group will comply with all the attached conditions.
Government grants receivable are recognised as income over the periods necessary to match them with the related
costs which they are intended to compensate, on a systematic basis. Government grants relating to expenses are
shown separately as other income.
Government grants relating to assets are deducted against the carrying amount of the assets.