Notes on the Accounts
1. ACCOUNTING POLICIES
a. Basis of consolidation
No consolidated accounts are prepared as the result and net worth of the Company's subsidiary are considered by the Directors to be immaterial to the Group.
b. Translation of foreign currencies
C.
Foreign currency loans for purchases of buses and equipment which are hedged by forward foreign exchange contracts taken out with the lender are stated at the appropriate contracted rates of exchange. With this exception, foreign currency balances at the year end are translated into Hong Kong dollars at the rates of exchange ruling at the balance sheet date and foreign currency transactions during the year are translated into Hong Kong dollars at the rates of exchange
ruling at the transaction dates. Differences on foreign currency translation are
taken to the profit and loss account.
Spare parts and stores
Spare parts and stores are valued at cost less provision.
Cost includes cost of purchases of materials, direct labour and an appropriate proportion of overheads.
The Kowloon Motor Bus Company (1933) Limited
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