CITIC Envirotech Ltd - Annual Report 2015 - page 59

NOTES TO
FINANCIAL STATEMENTS
December 31, 2015
57
CITIC ENVIROTECH LTD.
Annual
Report
2015
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont’d)
2.2 Adoption of new and revised standards (cont’d)
Amendments to FRS 1
Presentation of Financial Statements: Disclosure Initiative
The amendments have been made to the following:
 
Materiality and aggregation - An entity shall not obscure useful information by aggregating
or disaggregating information and materiality considerations apply to the primary statements,
notes and any specific disclosure requirements in FRSs.
 
Statement of financial position and statement of profit or loss and other comprehensive
income - The list of line items to be presented in these statements can be aggregated or
disaggregated as relevant. Guidance on subtotals in these statements has also been included.
 
Presentation of items of other comprehensive income (“OCI”) arising from equity-accounted
investments - An entity’s share of OCI of equity-accounted associates and joint ventures should
be presented in aggregate as single items based on whether or not it will subsequently be
reclassified to profit or loss.
 
Notes - Entities have flexibility when designing the structure of the notes and guidance
is introduced on how to determine a systematic order of the notes. In addition, unhelpful
guidance and examples with regard to the identification of significant accounting policies are
removed.
The Group anticipates that the application of amendments to FRS 1 in the future will not have a
material impact on the financial statements of the Group and of the Company in the period of their
initial adoption.
Management anticipates that the adoption of the other FRSs and amendments to FRS issued but
only effective in future periods will not have a material impact on the financial statements of the
Group and of the Company in the period of their initial adoption.
2.3 Basis of consolidation
The consolidated financial statements incorporate the financial statements of the Company and
entities controlled by the Company and its subsidiaries. Control is achieved when the Company:
 
has power over the investee;
 
is exposed, or has rights, to variable returns from its involvement with the investee; and
 
has the ability to use its power over the investee to affect the amount of the returns.
The Company reassesses whether or not it controls an investee if facts and circumstances indicate
that there are changes to one or more of the three elements of control listed above.
When the Company has less than a majority of the voting rights of an investee, it has power over
the investee when the voting rights are sufficient to give it the practical ability to direct the relevant
activities of the investee unilaterally. The Company considers all relevant facts and circumstances in
assessing whether or not the Company’s voting rights in an investee are sufficient to give it power,
including:
 
the size of the Company’s holding of voting rights relative to the size and dispersion of
holdings of the other vote holders;
 
potential voting rights held by the Company, other vote holders or other parties;
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