Annual Report 2016 - page 129

Notes to the Financial Statements
Annual Report 2016
115
Financial Section
1 General Information
New World Development Company Limited (the “Company”) is a limited liability company incorporated in Hong Kong. The
address of its registered office is 30/F, New World Tower, 18 Queen’s Road Central, Hong Kong. The shares of the Company
are listed on the Main Board of The Stock Exchange of Hong Kong Limited (the “Stock Exchange”).
The Company and its subsidiaries (together the “Group”) are principally engaged in property development and investment,
construction, provision of services (including property and facility management, transport and other services), infrastructure
operations (including the operation of roads, environment projects, commercial aircraft leasing, container handling, logistics
and warehousing services), hotel operations, department store operations, telecommunications, media, technology and
other strategic businesses.
These consolidated financial statements have been approved by the Board of Directors on 21 September 2016.
2 Basis of Preparation
The consolidated financial statements have been prepared in accordance with Hong Kong Financial Reporting Standards
(“HKFRS”) issued by the Hong Kong Institute of Certified Public Accountants (“HKICPA”). The consolidated financial
statements have been prepared under the historical cost convention, as modified by the revaluation of investment
properties, available-for-sale financial assets, certain financial assets and financial liabilities (including derivative financial
instruments), which have been measured at fair value.
The preparation of consolidated financial statements in conformity with HKFRS requires the use of certain critical accounting
estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting
policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are
significant to the consolidated financial statements, are disclosed in note 5 below.
(a) Adoption of revised standards, amendments to standards and interpretation
There are no standard, amendment to standard or interpretation that are effective for the first time for the financial
year ended 30 June 2016.
(b) Standards and amendments to standards which are not yet effective
The following new standards and amendments to standards are mandatory for accounting periods beginning on or
after 1 July 2016 or later periods but which the Group has not early adopted:
HKFRS 9 (2014)
Financial Instruments
HKFRS 14
Regulatory Deferral Accounts
HKFRS 15
Revenue from Contracts with Customers
HKFRS 16
Leases
Amendments to HKFRS 2
Classification and Measurement of Share-based Payment Transactions
Amendments to HKFRS10, HKFRS12
and HKAS 28 (2011)
Investment Entities: Applying the Consolidation Exception
Amendments to HKFRS 10 and HKAS 28
Sale or Contribution of Assets between an Investor and its Associate or
Joint Venture
Amendments to HKFRS 11
Accounting for Acquisitions of Interests in Joint Operations
Amendments to HKAS 1
Disclosure Initiative
Amendments to HKAS 7
Disclosure Initiative
Amendments to HKAS 12
Recognition of Deferred Tax Assets for Unrealised Losses
Amendments to HKAS 16 and HKAS 38
Clarification of Acceptable Methods of Depreciation and Amortisation
Amendments to HKAS 27
Equity Method in Separate Financial Statements
Annual Improvement Project
Annual Improvements 2012–2014 Cycle
The Group has already commenced an assessment of the impact of these new standards and amendments to
standards, certain of which may be relevant to the Group’s operations and may give rise to changes in accounting
policies, changes in disclosures and remeasurement of certain items in the consolidated financial statements. The
Group is not yet in a position to ascertain their impact on its results of operations and financial position.
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