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2009/10 Annual Report Lenovo Group Limited
77
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 revised standards, new interpretations, and amendments to standards and interpretations
that are mandatory for the year ended March 31, 2010.
The adoption of HKAS 1 (Revised) requires “non-owner changes in equity” to be presented separately from “owner
changes in equity”. Management has decided to present two statements, a consolidated income statement and a
consolidated statement of comprehensive income.
The other adoptions do not result in substantial changes to the Group’s accounting policies or financial results.
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, 2010
and have not been early adopted:
– HKFRS 1 (Revised), “First-time adoption of Hong Kong Financial Reporting Standards”, effective for annual periods
beginning on or after July 1, 2009; and for amendments to HKFRS 1 (Revised) published in May 2010, effective for
annual periods beginning on or after January 1, 2011
– HKFRS 2 (Amendment), “Share-based payment”, effective for annual periods beginning on or after July 1, 2009
– HKFRS 3 (Revised), “Business combinations”, effective for annual periods beginning on or after July 1, 2009; and for
amendments to HKFRS 3 (Revised) published in May 2010, effective for annual periods beginning on or after July 1,
2010
– HKFRS 7 (Amendment), “Financial instruments: Disclosures”, effective for annual periods beginning on or after
January 1, 2011
– HKFRS 8 (Amendment), “Operating segments”, effective for annual periods beginning on or after January 1, 2010
– HKFRS 9, “Financial instruments”, effective for annual periods beginning on or after January 1, 2013
– HKAS 1 (Amendment), “Presentation of financial statements”, effective for annual periods beginning on or after
January 1, 2010; and for amendments to HKAS 1 (Revised) published in May 2010, effective for annual periods
beginning on or after January 1, 2011
– HKAS 7 (Amendment), “Cash flow statements”, effective for annual periods beginning on or after January 1, 2010
– HKAS 17 (Amendment), “Leases”, effective for annual periods beginning on or after January 1, 2010
– HKAS 18 (Amendment), “Revenue”, effective for annual periods beginning on or after January 1, 2010
– HKAS 21 (Amendment), “The effect of changes in foreign exchange rates”, effective for annual periods beginning on
or after July 1, 2010
– HKAS 24 (Revised), “Related party disclosures”, effective for annual periods beginning on or after January 1, 2011
– HKAS 27 (Revised), “Consolidated and separate financial statements”, effective for annual periods beginning on or
after July 1, 2009
– HKAS 28 (Amendment), “Investments in associates”, effective for annual periods beginning on or after July 1, 2010