Huawei 2015 Annual Report Download - page 58

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56
Notes to the Consolidated Financial Statements Summary
1 Reporting entity
Huawei Investment & Holding Co., Ltd. (the Company)
is a limited liability company established in Shenzhen in
the People's Republic of China (the PRC). The Company's
registered office is at Huawei Industrial Base, Bantian
Longgang, Shenzhen, PRC.
The Company and its subsidiaries (the Group) principally
provide end to end Information Communication and
Technology solutions. This includes the research,
design, manufacture and marketing of telecom network
equipment, IT products and solutions and smart devices
for telecom carriers, enterprises and consumers.
The principal activities and other particulars of the
Company's major subsidiaries are set out in note 32(b)
to the consolidated financial statements summary.
2 Statement of compliance
The Group has prepared a full set of consolidated
financial statements (consolidated financial
statements) for the year ended December 31, 2015
in accordance with International Financial Reporting
Standards (IFRSs), and Interpretations issued by the
International Accounting Standards Board (IASB) and
the Interpretations Committee.
The consolidated financial statements summary has
been prepared and presented based on the audited
consolidated financial statements for the year ended
December 31, 2015 in order to disclose material financial
and operational information.
3 Significant accounting policies
(a) Basis of preparation of the consolidated
financial statements
The consolidated financial statements have been
prepared under the historical cost basis modified
for the fair valuation of financial instruments
classified as available-for-sale and held-for-
trading (see note 3(e)).
The preparation of consolidated financial
statements in accordance with IFRSs requires
management to make judgements, estimates and
assumptions that affect the application of policies
and reported amounts of assets, liabilities,
income and expenses. Estimates and associated
assumptions are based on historical experience
and various other factors that are believed to
be reasonable under the circumstances. Actual
results may differ from these estimates.
Estimates and underlying assumptions are
reviewed regularly and revised when required.
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 IFRSs that have significant effect
on the consolidated financial statements and
major sources of estimation uncertainty are
discussed in note 5.
(b) Functional and presentation currency
All financial information in the consolidated
financial statements summary is presented in
millions of Chinese Yuan (CNY), which is the
Company's functional currency.
(c) Consolidation
The financial statements consolidate the results,
assets, liabilities and cash flows of all subsidiaries
which the Group controls.
Subsidiaries are consolidated from the date that
control commences until the date that control
passes. Intra-group balances, transactions and
cash flows and any unrealised profits arising from
intra-group transactions are eliminated in full.