NOTES ON THE ACCOUNTS
1. ACCOUNTING POLICIES
CONFIDENTIAL
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a.
ACCOUNTS AND ACCOUNTING - DATES
The accounts are maintained on an income and
expenditure basis and show all income relating to the period
whether received or not (except for dividends that may have
been declared but not paid), and all expenditure relating to
the period, both paid and accrued.
December.
The accounting year runs from 1 January to 31
b. FOREIGN CURRENCY ASSETS AND FORWARD EXCHANGE CONTRACTS
Purchases or sales of Hong Kong dollars are
brought to account at the contract rates (1.e. at the actual
Hong Kong dollar value). Foreign currency transactions
which do not involve a Hong Kong dollar amount are brought
to account at the 'base exchange rates'. (see note * on page
30).
1
Foreign currency income and expenditure during the
year is also brought to account at 'base exchange rates'.
US dollar assets and liabilities at the year end
are translated into Hong Kong dollars at the exchange rate
determined by the Financial Secretary for pricing
certificates of indebtedness. This is currently USD1 to
HKD7.80. Assets and liabilities in other foreign currencies
are translated into Hong Kong dollars based on the USD
middle market cross rates in New York at the close of
business on the last business day of the accounting year as
quoted by Reuters ('ruling exchange rates'), with the
exception of XEU which is based on the mid-point between the
opening buying and selling rates as advised by the Hong Kong
Association of Banks on the first business day of the
following year.
CONFIDENTIAL