52
Hong Kong Ferry (Holdings) Company Limited Annual Report 2013
Notes to the Accounts
1
SIGNIFICANT ACCOUNTING POLICIES
(a)
Statement of compliance
(b)
These accounts have been prepared in accordance with all applicable Hong Kong Financial Reporting Standards ("HKFRSs"), which collective term includes all applicable individual Hong Kong Financial Reporting Standards, Hong Kong Accounting Standards ("HKASS") and Interpretations issued by the Hong Kong Institute of Certified Public Accountants ("HKICPA"), accounting principles generally accepted in Hong Kong and the requirements of the Hong Kong Companies Ordinance. These accounts also comply with the applicable disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited. A summary of the significant accounting policies adopted by the Group is set out below.
The HKICPA has issued certain new and revised HKFRSS that are first effective or available for early adoption for
the current accounting period of the Group and the Company. Note 1(c) provides information on any changes
in accounting policies resulting from initial application of these developments to the extent that they are
relevant to the Group for the current and prior accounting periods reflected in these accounts.
Basis of preparation of the accounts
The consolidated accounts for the year ended 31 December 2013 comprise the Company and its subsidiaries
(together referred to as the "Group") and the Group's interest in associates.
The measurement basis used in the preparation of the accounts is the historical cost basis except that the
following assets and liabilities are stated at their fair value as explained in the accounting policies set out below:
investment properties (see note 1(g)); and
financial instruments classified as available-for-sale securities (see note 1(f)).
The preparation of accounts in conformity with HKFRSS requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income and
expenses. The estimates and associated assumptions are based on historical experience and various other
factors that are believed to be reasonable under the circumstances, the results of which form the basis of
making the judgements about carrying values of assets and liabilities that are not readily apparent from other
sources. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
Judgements made by management in the application of HKFRSs that have significant effect on the accounts
and major sources of estimation uncertainty are discussed in note 2.