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Notes To The Consolidated Financial Statements
(Expressed in Renminbi)
1
/ China Communications Services Corporation Limited
3
Changes in accounting policies
(continued)
(ii)
Improvements to IFRSs (2010) (continued)
As a result of the amendment to IFRS 1, the Group has:
–
retrospectively adjusted the amounts reported for previous periods in the respective IFRS
financial statements to be consistent with the retrospective recognition of property, plant
and equipment, investment properties, lease prepayment, other intangible assets and other
investments assumed during the Restructuring and acquired during the acquisition of Target
Business at their deemed cost in the respective first IFRS financial statements based on the
results of valuations, with consequential adjustments for depreciation and amortisation charged
in subsequent periods; and
–
changed its accounting policy for property, plant and equipment from the revaluation model
to the cost model. The revaluation surplus and deficit related to the revaluation performed in
2006 and 2007, has also been adjusted retrospectively. This change is to align the Group’s
accounting policy with industry peers to provide more relevant financial information to the users
of the Group’s consolidated financial statements and to eliminate the differences between the
Group’s financial statements under IFRS and those under PRC GAAP.
The following table summarises the retrospective adjustments that have been made in accordance
with amendment to IFRS 1 to each of the line items in the financial statements:
31 December
2010
1 January
2010
RMB’000
RMB’000
Increase/(decrease) on items of consolidated balance sheet
Assets
Property, plant and equipment
(140,633)
(144,677)
Investment properties
36,475
42,366
Lease prepayments
454,749
466,697
Other intangible assets
(1,895)
49
Other investments
123,511
123,511
Deferred tax assets
(55,291)
(56,830)
Liabilities
Deferred tax liabilities
21,512
21,512
Equity
Capital reserve
913,847
913,847
Other reserve
(85,205)
(85,057)
Revaluation reserve
(415,557)
(415,557)
Retained earnings
(17,513)
(3,461)
Non-controlling interests
(168)
(168)
Increase on items of balance sheet
Assets
Investments in subsidiaries
1,011,229
1,011,229
Equity
Capital reserve
1,011,229
1,011,229