Lenovo 2013 Annual Report Download - page 121

NOTES TO THE FINANCIAL STATEMENTS
2012/13 Annual Report Lenovo Group Limited 119
1 General information and basis of preparation
Lenovo Group Limited (the “Company”) and its subsidiaries (together, the “Group”) develop, manufacture and market reliable,
high-quality, secure and easy-to-use technology products and services. Its product lines include legendary Think-branded
commercial personal computers and Idea-branded consumer personal computers, as well as servers, workstations, and a
family of mobile internet devices, including tablets and smartphones.
The Company is a limited liability company incorporated in Hong Kong. The address of its registered office is 23rd Floor,
Lincoln House, Taikoo Place, 979 King’s Road, Quarry Bay, Hong Kong. The Company has its listing on The Stock Exchange
of Hong Kong Limited.
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.
Changes in accounting policies and disclosures
The Group has adopted the newly effective amendment to existing standards that is mandatory for the year ended March 31,
2013 and considered appropriate and relevant to its operations. The adoption of this newly effective amendment does 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 and amendments to existing
standards, which are considered appropriate and relevant to the Group’s operations, have been issued but are not effective
for the year ended March 31, 2013 and have not been early adopted:
Effective for annual
periods beginning
on or after
HKAS 19 (2011), Employee benefits January 1, 2013
HKAS 27 (2011), Separate financial statements January 1, 2013
HKAS 28 (2011), Investments in associates and joint ventures January 1, 2013
HKFRS 9, Financial instruments January 1, 2015
HKFRS 10, Consolidated financial statements January 1, 2013
HKFRS 11, Joint arrangements January 1, 2013
HKFRS 12, Disclosure of interests in other entities January 1, 2013
HKFRS 13, Fair value measurement January 1, 2013
Amendments to HKAS 1 (Revised), Presentation of items of other comprehensive income July 1, 2012
Amendments to HKAS 32, Financial instruments: Presentation –
Offsetting financial assets and financial liabilities January 1, 2014
Amendments to HKFRS 7, Financial instruments: Disclosures –
Offsetting financial assets and financial liabilities January 1, 2013
Amendments to HKFRS 10, HKFRS 11 and HKFRS 12, Consolidated Financial Statements,
Joint Arrangements and Disclosure of Interests in Other Entities: Transition Guidance January 1, 2013
Amendments to HKFRS 10, HKFRS 12 and HKAS 27 (2011), Investment entities January 1, 2014
The adoption of these new and revised standards and amendments to existing standards is not expected to have material
impact on the Group’s financial statements.
Changes in presentation
The Group announced a new organizational structure that became effective in April 2012 with the creation of new
reporting business units based upon geographic efficiencies, cost savings and customer value, namely China, Asia-Pacific/
Latin America (“APLA”), Europe-Middle East-Africa (“EMEA”) and North America. The Group’s original market structure
had achieved rapid business growth through the alignment of its strategic direction and business acquisition. The new
geographical structure is created in recognition that the Group’s continued success depends on staying as close to its
customers as possible, and will help ensuring the Group remains in the strongest position to execute its worldwide strategy
going forward.