China Communications Services Corporation Limited Annual Report 2015
104
NOTES TO THE
CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2015
1. PRINCIPAL ACTIVITIES AND ORGANISATION
(continued)
(b) Organisation
(continued)
Pursuant to the Equity Transfer Agreements entered into by the Company and CTC Group on 26 May 2009, the
Company acquired a 95.945% equity interest in Shanghai Tongmao Import & Export Co. Ltd (“Shanghai Tongmao”)
and a 51% equity interest in Guoxin Lucent Technologies Network Technologies Co., Ltd (“Guoxin Lucent”, now
renamed as “Guoxun Innovation Software Technology Co., Ltd”) for a total purchase price of RMB98.05 million.
Pursuant to the Equity Transfer Agreements entered into by the Group and CTC’s subsidiaries on 20 June 2012, the
Group completed acquisition on 30 June 2012 of (i) 100% equity interest in each of Ningxia Communications
Constructions Co., Ltd. (“Ningxia Construction”) and Ningxia Telecom Constructions Supervision Consultancy Co.,
Ltd. (“Ningxia Supervision”); and (ii) 100% equity interest in Xinjiang Communications Planning & Designing Institute
Co., Ltd. (“Xinjiang Planning & Designing”) (collectively the “Target Interests”), for a consideration of RMB51.07
million.
Pursuant to the Equity Transfer Agreements entered into by the Group and China Telecommunications Corporation
Industrial Assets Management Centre (a directly wholly-owned subsidiary of CTC) on 20 June 2012, the Group
completed acquisition on 26 July 2012 of 51% equity interest in Sino-British Submarine Systems Co., Ltd. (“SBSS”)
and all the associated rights and obligations for a total consideration of RMB264.60 million.
2. SIGNIFICANT ACCOUNTING POLICIES
(a) Statement of compliance
The consolidated financial statements of the Group have been prepared in accordance with International Financial
Reporting Standards (“IFRSs”) as issued by the International Accounting Standards Board (“IASB”). IFRSs include all
applicable individual International Financial Reporting Standards, International Accounting Standards (“IASs”) and
related interpretations. The consolidated financial statements also comply with the disclosure requirements of the
Hong Kong Companies Ordinance (“CO”) and the applicable disclosure provisions of the Rules Governing the Listing
of Securities on The Stock Exchange of Hong Kong Limited (“Listing Rules”). A summary of the significant accounting
policies adopted by the Group is set out below.
The provisions of the new Hong Kong Companies Ordinance (Cap. 622) regarding preparation of accounts and
directors’ reports and audits became effective for the Company for the financial year ended 31 December 2015.
Further, the disclosure requirements set out in the Listing Rules regarding annual accounts have been amended with
reference to the new CO. Accordingly the presentation and disclosure of information in the consolidated financial
statements for the financial year ended 31 December 2015 have been changed to comply with these new
requirements. Comparative information in respect of the financial year ended 31 December 2014 are presented or
disclosed in the consolidated financial statements based on the new requirements. Information previously required to
be disclosed under the predecessor CO or Listing Rules but not under the new CO or amended Listing Rules are not
disclosed in these consolidated financial statements.
The IASB has issued certain new and revised IFRSs that are first effective or available for early adoption for the current
year of the Group. Note 3 provides information on any changes in accounting policies resulting from initial
application of these developments to the extent that they are relevant to the Group for the current and prior years
reflected in the consolidated financial statements.
