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CITIC LIMITED
Notes to the Consolidated Financial Statements
For the six months ended 30 June 2016
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2 Basis of preparation
(continued)
Disposal groups held for sale and discontinued operations
Disposal groups are classified as held for sale when their carrying amount is to be recovered principally
through a sale transaction and a sale is considered highly probable. Disposal groups (except for certain
assets as explained below) are stated at the lower of carrying amount and fair value less costs to sell.
Deferred tax assets, financial assets (other than investments in subsidiaries and associates) and investment
properties, which are classified as held for sale, would continue to be measured in accordance with the
policies set out in the Company’s annual financial statements for the year ended 31 December 2015.
A discontinued operation is a component of the Group’s business, the operations and cash flows of which
can be clearly distinguished from the rest of the Group and which represents a separate major line of
business or geographic area of operations. Intra-group balances, transactions and cash flows between
discontinued and continuing operations are eliminated in preparing the Accounts.
When an operation is classified as discontinued, a single amount is presented in the income statement,
which comprises the post-tax profit or loss of the discontinued operation and the post-tax gain or loss
recognised on the measurement to fair value less costs to sell, or on the disposal, of the assets or disposal
group(s) constituting the discontinued operation.
The following amendments became effective for the first time for the financial year beginning on or after 1
January 2016:
HKAS 1 (Amendment)
The disclosure initiative
HKAS 16 and HKAS 38 (Amendment)
Clarification of acceptable methods of depreciation and
amortisation
HKAS 27 (Amendment)
Separate financial statements regarding the equity method
HKFRS 10, HKFRS 12 and
HKAS 28(Amendment)
Investment entities: applying the consolidation exception
HKFRS 11 (Amendment)
Accounting for acquisitions of interests in joint operations
Annual Improvement Project
Annual Improvements 2012-2014 Cycle
Adoption of the above amendments does not have a significant impact on the Accounts.
The Group has not applied the following amendments to standards and new standards which are not yet
effective for the financial year beginning on or after 1 January 2016 and which have not been early adopted
in the Accounts.
HKFRS 15
Revenue from contracts with customers
(1)
HKFRS 9
Financial instruments
(1)
HKFRS 16
Leases
(2)
HKAS 28 and HKFRS 10 (Amendments)
Sale or contribution of assets between an investor and
its associate or joint venture
(3)
(1)
Effective for the annual periods beginning on or after 1 January 2018.
(2)
Effective for the annual periods beginning on or after 1 January 2019.
(3)
Originally effective for annual periods beginning on or after 1 January 2016. The effective date has now been deferred/removed.
The Group is in the process of making an assessment of the impact of the above new standards and
amendments to standards.