Annual Report 2015
FINANCIAL SECTION
129
3 PRINCIPAL ACCOUNTING POLICIES
(continued)
(ab) Insurance contracts
The Group assesses at the end of each reporting period the liabilities under its insurance contracts using
current estimates of future cash flows. If the carrying amount of the relevant insurance liabilities less than the
best estimate of the expenditure required to settle the relevant insurance liabilities at the end of the reporting
period, the Group recognises the entire difference in profit or loss. These estimates are recognised only when
the outflow is probable and the estimates can be reliably measured.
The Group regards its financial guarantee contracts in respect of mortgage facilities provided to certain
property purchasers, guarantees provided to its related parties and tax indemnity provided to its non-wholly
owned subsidiary as insurance contracts.
(ac) Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief
operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and
assessing performance of the operating segments, has been identified as the Executive Committee of the
Board of Directors of the Company that makes strategic decisions.
Segment assets consist primarily of property, plant and equipment, land use rights, investment properties,
intangible concession rights, intangible assets, available-for-sale financial assets, held-to-maturity investments,
financial assets at fair value through profit or loss, properties for development, other non-current assets,
properties under development, properties held for sale, inventories and receivables and exclude derivative
financial instruments, deferred tax assets, restricted bank balances and cash and bank balances. Segment
liabilities comprise operating liabilities and exclude items such as taxation and borrowings.
(ad) Dividend distribution
Dividend distribution to the Company’s shareholders is recognised as a liability in the financial statements
in the financial period when the dividends are approved by the Company’s shareholders/directors, where
appropriate.
