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Notes To The Consolidated Financial Statements
(Expressed in Renminbi)
Annual Report 2011 /
1
3
Changes in accounting policies
(continued)
(i)
IAS 24 (revised 2009), “Related Party Disclosures”
IAS 24 (revised 2009), “Related Party Disclosures” revises the definition of a related party. As a
result, the Group has re-assessed the identification of related parties and concluded that the revised
definition does not have any material impact on the Group’s related party disclosures in the current
and previous periods. The revised standard also provides limited relief from disclosure of information
by government-related entities in respect of transactions with the government to which the Group is
related or transactions with other entities related to the same government. As such, the adoption of
IAS 24 (revised 2009), “Related Party Disclosures” has resulted in a change in the disclosures for the
related party transactions with government-related entities in the financial statements.
(ii)
Improvements to IFRSs (2010)
The Improvements to IFRSs (2010) omnibus standard introduces an amendment to IFRS 1, First-
time adoption of International Financial Reporting Standards. In the amendment to IFRS 1, a first-time
adopter of IFRSs is allowed to use an event-driven fair value measurement as deemed cost for some
or all of its assets and liabilities, even when the measurement date is after the IFRS transition date,
provided that the measurement date is during the period covered by the entity’s first IFRS financial
statements. This amendment can be adopted retrospectively by existing IFRS reporters at the latest in
the annual period beginning on or after 1 January 2011.
The accounting periods covered by the first IFRS financial statements of the Predecessor Operations
and the acquisition of Target Business are from 1 January 2004 to 31 December 2006 and from 1
January 2005 to 31 December 2007, respectively. During the Restructuring and the acquisition of
Target Business, as required by the applicable laws and regulations of the PRC, the Group’s financial
statements prepared under Accounting Standards for Business Enterprises and other relevant rules
(collectively “PRC GAAP”), accounted for property, plant and equipment, investment properties, lease
prepayments, other intangible assets and other investments at deemed cost based on the valuations
performed by China United Assets Appraisals Co., Ltd. as at 31 March 2006, 30 April 2006 and 31
January 2007 respectively. As the valuations were performed as at a date later than the respective
dates of transition to IFRSs, the Group was not permitted at that time to adopt these valuations as
deemed cost for the respective IFRS financial statements and instead adopted the following IFRS
accounting policies:
–
property, plant and equipment were recognised at the carrying amounts determined in
accordance with IAS 16 at the respective dates of transition to IFRS and subsequently carried at
revalued amount, being its fair value at the dates of revaluation; and
–
investment properties, lease prepayments, other intangible assets and other investments
were recognised at historical cost and therefore, the related revaluation gains arising from the
revaluations in 2006 and 2007 as mentioned above were not recognised.