Notes on the Accounts
Hong Kong Ferry (Holdings) Co. Ltd.
1. PRINCIPAL ACCOUNTING POLICIES
(p) Borrowing costs
Borrowing costs are expensed in the profit and loss account in the period in which they are
incurred, except to the extent that they are capitalised as being directly attributable to the
acquisition, construction or production of an asset which necessarily takes a substantial period
of time to get ready for its intended use or sale.
(q) Related parties
For the purposes of these accounts, parties are considered to be related to the Group if the Group has the ability, directly or indirectly, to control the party or exercise significant influence over the party in making financial and operating decisions, or vice versa, or where the Group and the party are subject to common control or common significant influence. Related parties may be individuals or entities.
(r) Cash equivalents
Cash equivalents are short-term, highly liquid investments which are readily convertible into known amounts of cash without notice and which were within three months of maturity when acquired. For the purposes of the cash flow statement, cash equivalents would also include advances from banks repayable within three months from the date of the advance.
2. TURNOVER
Group turnover represents gross income from sales and services provided to third parties, analysed
as follows:
1999
1998
HK$'000
HKS'000
Ferry operations and related businesses
357,466
600,967
Property development and investment
259,820
83,825
Trading and services
143,042
151.796
Travel and others
128,895
127,005
889,223
963,593
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