Annual Report - QuamIR

Notes to the Consolidated Financial Statements (Continued)
2 Summary of significant accounting policies (Continued)
2.2 Consolidation (Continued)
(d) Jointly controlled entities (Continued)
Investments in jointly controlled entities are accounted for
by the equity method of accounting. The consolidated
income statement includes the Group’s share of the
results of jointly controlled entities for the year, and the
consolidated balance sheet includes the Group’s share of
the net assets of the jointly controlled entities and goodwill
(net of any accumulated impairment loss) on acquisition.
2
2.2
(d)
In the Company’s balance sheet, the investments in
jointly controlled entities are stated at cost less provision
for impairment losses. The results of jointly controlled
entities are accounted for by the Company on the basis of
dividends received and receivables.
2.3 Segment reporting
Operating segments are reported in a manner consistent with
the internal reporting provided to the chief operating decisionmaker
(“CODM”). The CODM, who is responsible for allocating
resources and assessing performance of the operating
segments, has been identified as the Group’s most senior
executive management that makes strategic decisions.
2.4 Foreign currency translation
(a) Functional and presentation currency
Items included in the financial statements of each of the
Group’s entities are measured using the currency of the
primary economic environment in which the entity operates
(the “functional currency”). The Company’s functional
currency is Renminbi and the Group’s presentation
currency is Hong Kong dollars to facilitate analysis of the
financial information of the Group, which is listed in Hong
Kong.
2.3
2.4
(a)
(b)
Transactions and balances
(b)
Foreign currency transactions are translated into the
functional currency using the exchange rates prevailing
at the dates of the transactions or valuation where items
are remeasured. Foreign exchange gains and losses
resulting from the settlement of such transactions and from
the translation at year-end exchange rates of monetary
assets and liabilities denominated in foreign currencies are
recognised in the consolidated income statement.
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