Basic HTML Version
Notes To The Consolidated Financial Statements
(Expressed in Renminbi)
Annual Report 2011 /
1
2
Significant accounting policies
(continued)
(j) Intangible assets (other than goodwill)
(continued)
Other intangible assets that are acquired by the Group are stated at cost less accumulated amortisation
(where the estimated useful life is finite) and impairment losses (see note 2(l)).
Amortisation of intangible assets with finite useful lives is charged to profit or loss from the date they
are available for use on a straight-line basis over the assets’ estimated useful lives.
Both the period and method of amortisation are reviewed annually.
(k) Leased assets
An arrangement, comprising a transaction or a series of transactions, is or contains a lease if the Group
determines that the arrangement conveys a right to use a specific asset or assets for an agreed period
of time in return for a payment or a series of payments. Such a determination is made based on an
evaluation of the substance of the arrangement and is regardless of whether the arrangement takes
the legal form of a lease.
Assets that are held by Group under leases which do not transfer to the Group substantially all the
risks and rewards of ownership are classified as being held under operating leases.
Where the Group has the use of assets held under operating leases, payments made under the
leases are charged to the consolidated income statement in equal instalments over the accounting
periods covered by the lease term, except where an alternative basis is more representative of the
pattern of benefits to be derived from the leased asset. Lease incentives received are recognised in
the consolidated income statement as an integral part of the aggregate net lease payments made.
Contingent rentals are charged to the consolidated income statement in the accounting period in which
they are incurred.
(l) Impairment of assets
(i)
Impairment of investments in debt and equity securities and other receivables
Investments in debt and equity securities (other than investments in subsidiaries: see note 2(l)(ii))
and other current and non-current receivables that are stated at cost or amortised cost or are
classified as available-for-sale securities are reviewed at each balance sheet date to determine
whether there is objective evidence of impairment. Objective evidence of impairment includes
observable data that comes to the attention of the Group about one or more of the following
loss events.
–
Significant financial difficulty of the debtor;
–
A breach of contract, such as default or delinquency in interest or principal payments;
–
It becoming probable that the debtor wi l l enter bankruptcy or other financial
reorganisation;
–
Significant changes in the technological, market, economic or legal environment that
have an adverse effect on the debtor; and
–
A significant or prolonged decline in the fair value of an investment in an equity
instrument below its cost.