Huawei 2014 Annual Report Download - page 65

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63Consolidated Financial Statements Summary and Notes
1. Basis of preparation of the consolidated
financial statements summary and significant
accounting policies
(a) Basis of preparation
Huawei Investment & Holding Co., Ltd. (the
"Company") and its subsidiaries (together
referred to as the "Group") have prepared a
full set of consolidated financial statements
("consolidated financial statements") for the
year ended December 31, 2014 in accordance
with International Financial Reporting Standards
("IFRSs"), which collective term includes all
applicable individual IFRSs, International
Accounting Standards ("IASs") and Interpretations
issued by the International Accounting Standards
Board ("IASB").
The consolidated financial statements summary
has been prepared and presented based on the
audited consolidated financial statements for the
year ended December 31, 2014 in order to disclose
material financial and operational information.
The intended users of the consolidated financial
statements summary can obtain access to the
audited consolidated financial statements for the
year ended December 31, 2014 upon consent
of the Group's Management through the email
address, information@huawei.com.
(b) Functional and presentation currency
All financial information in the consolidated
financial statements summary is presented in
Chinese Yuan ("CNY"), which is the Company's
functional currency. All amounts have been
rounded to the nearest million unless otherwise
specified.
(c) Translation of foreign currencies
i) Foreign currency transactions
Foreign currency transactions during the year are
translated to the respective functional currencies
Notes to the Consolidated Financial Statements Summary
of group entities at the foreign exchange rates
ruling at the transaction dates. Monetary assets
and liabilities denominated in foreign currencies
are translated to the functional currency at the
foreign exchange rates ruling at the end of the
reporting period. Exchange gains and losses are
recognised in profit or loss.
Non-monetary assets and liabilities that are
measured in terms of historical cost in a foreign
currency are translated using the foreign
exchange rates ruling at the transaction dates.
Non-monetary assets and liabilities denominated
in foreign currencies that are stated at fair value
are translated using the foreign exchange rates
ruling at the dates the fair value was measured.
ii) Foreign operations
The results of foreign operations, except
for foreign operations in hyperinflationary
economies, are translated into CNY at the
exchange rates approximating the foreign
exchange rates ruling at the dates of the
transactions. Statement of financial position items
are translated into CNY at the closing foreign
exchange rates at the end of the reporting
period. The resulting exchange differences are
recognised in other comprehensive income and
accumulated separately in equity in the exchange
reserve. If the operation is a non-wholly-owned
subsidiary, then the relevant proportionate share
of the exchange difference is allocated to the
non-controlling interests.
The results of foreign operations in
hyperinflationary economies are translated to
CNY at the exchange rates ruling at the end
of the reporting period. Prior to translating
the financial statements of foreign operations
in hyperinflationary economies, their financial
statements for the current year are restated to
account for changes in the general purchasing
power of the local currencies. The restatement
is based on relevant price indices at the end of
the reporting period.