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2008/09 Annual Report Lenovo Group Limited
80
NOTES TO THE FINANCIAL STATEMENTS
1 Basis of preparation
The financial statements have been prepared in accordance with Hong Kong Financial Reporting Standards (“HKFRS”). The
financial statements have been prepared under the historical cost convention except that certain financial assets and financial
liabilities are stated at fair values, as explained in the significant accounting policies set out below.
The preparation of financial statements in conformity with HKFRS requires the use of certain critical accounting estimates.
It also requires management to exercise its judgment in the process of applying the Group’s accounting policies. The areas
involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the financial
statements are disclosed in Note 4.
The Group has adopted those amendments to standards and new interpretations that are mandatory for the year ended
March 31, 2009. The adoption of these amendments to standards and new interpretations do not result in substantial changes
to the Group’s accounting policies or financial results.
The following amendments to standards and new interpretations are mandatory for the year ended March 31, 2009:
– HKFRS 7 (Amendment), “Financial instruments: Disclosures”, amendment on disclosure requirements with respect to
financial assets reclassified out of the held-for-trading and available-for-sale categories, effective prospectively from July
1, 2008
– HKAS 39 (Amendment), “Financial instruments: Recognition and measurement”, amendment on reclassification of
financial assets permits reclassification of certain financial assets out of the held-for-trading and available-for-sale
categories if specified conditions are met, effective prospectively from July 1, 2008
– HK(IFRIC)-Int 12, “Service concession arrangements”, effective for annual periods beginning on or after January 1, 2008
– HK(IFRIC)-Int 14, “HKAS 19 – The limit on a defined benefit asset, minimum funding requirements and their interactions”,
effective for annual periods beginning on or after January 1, 2008
The amendments on HKFRS 7 and HKAS 39 do not have any impact on the Group’s financial statements as the Group has
not reclassified any financial assets.
At the date of approval of these financial statements, the following new and revised standards, new interpretations, and
amendments to standards and interpretations have been issued but are not effective for the year ended March 31, 2009 and
have not been early adopted:
– HKFRS 1 (Amendment), “First-time adoption of Hong Kong Financial Reporting Standards”, effective for annual periods
beginning on or after January 1, 2009
– HKFRS 1 (Revised), “First-time adoption of Hong Kong Financial Reporting Standards”, effective for annual periods
beginning on or after July 1, 2009
– HKFRS 2 (Amendment), “Share-based payment – vesting conditions and cancellation”, effective for annual periods
beginning on or after January 1, 2009
– HKFRS 3 (Revised), “Business combinations”, effective for annual periods beginning on or after July 1, 2009