Mandarin Oriental International Limited - Mandarin Oriental Hotel ...
Mandarin Oriental International Limited - Mandarin Oriental Hotel ...
Mandarin Oriental International Limited - Mandarin Oriental Hotel ...
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32<br />
PRINCIPAL ACCOUNTING POLICIES<br />
A Basis of preparation<br />
These financial statements have been prepared in accordance with <strong>International</strong> Financial Reporting Standards,<br />
including <strong>International</strong> Accounting Standards and interpretations adopted by the <strong>International</strong> Accounting<br />
Standards Board.The financial statements have been prepared under the historical cost convention except as<br />
disclosed in the accounting policies below.<br />
The accounting policies adopted are consistent with those of the previous financial year.<br />
In view of the international nature of the Group’s operations, the amounts shown in the financial statements are<br />
presented in United States Dollars, which represents the Company’s functional currency.<br />
The Group’s reportable segments are set out in note 1.<br />
B Basis of consolidation<br />
i) The consolidated financial statements include the financial statements of the Company, its subsidiaries and,<br />
on the basis set out in (ii) below, its associates and joint ventures. Subsidiaries are companies over which the<br />
Group has the power to govern the financial and operating policies.The results of subsidiaries, associates and<br />
joint ventures are included or excluded from their effective dates of acquisition or disposal respectively.All<br />
material intercompany transactions, balances and unrealized surpluses and deficits on transactions between<br />
Group companies have been eliminated.<br />
ii) Associates are companies, not being subsidiaries or joint ventures, over which the Group exercises significant<br />
influence. Joint ventures are entities which the Group jointly controls with one or more other venturers.<br />
Associates and joint ventures are included on the equity basis of accounting.<br />
iii) Minority interests represent the proportion of the results and net assets of subsidiaries and their associates and<br />
joint ventures not attributable to the Group.<br />
iv) The results of companies other than subsidiaries, associates and joint ventures are included only to the extent<br />
of dividends received.<br />
C Foreign currencies<br />
Transactions in foreign currencies are accounted for at the exchange rates ruling at the transaction dates.<br />
Assets and liabilities of subsidiaries, associates and joint ventures, together with all other monetary assets and<br />
liabilities expressed in foreign currencies are translated into United States Dollars at the rates of exchange ruling<br />
at the year end. Results expressed in foreign currencies are translated into United States Dollars at the average<br />
rates of exchange ruling during the year.<br />
MANDARIN ORIENTAL INTERNATIONAL LIMITED