Lenovo 2016 Annual Report Download - page 167

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2015/16 Annual Report Lenovo Group Limited
NOTES TO THE FINANCIAL STATEMENTS
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 primary listing
on The Stock Exchange of Hong Kong Limited.
The financial statements have been prepared in accordance with all applicable 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.
Upon completion of fair value assessments for the net assets acquired from the business combination activities in
FY2014/15, the comparative consolidated balance sheet as at March 31, 2015 has been retrospectively reclassified
to reflect the final allocation of fair values of the net assets acquired in FY2014/15 (Note 36).
Changes in accounting policies and disclosures
The Group has adopted the following new amendment to existing standard that is mandatory for the year ended
March 31, 2016 which the Group considers is appropriate and relevant to its operations:
– Amendments to HKAS 19 (2011), Employee benefits
The adoption of this newly effective amendment to existing standard 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 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, 2016 and have not been early adopted:
Effective for annual periods
beginning on or after
HKFRS 9, Financial instruments January 1, 2018
HKFRS 15, Revenue from contracts with customers January 1, 2018
HKFRS 16, Leases January 1, 2019
Amendments to HKAS 1, Disclosure initiative January 1, 2016
Amendments to HKAS 16 and HKAS 38, Clarification of
acceptable methods of depreciation and amortization January 1, 2016
Amendments to HKAS 27, Equity method in separate financial statements January 1, 2016
Amendments to HKFRS 10, HKFRS 12 and HKAS 28, Investment entities:
applying the consolidation exception January 1, 2016
Amendments to HKFRS 11, Accounting for acquisitions of interests in
joint operations January 1, 2016
Amendments to HKFRS 10 and HKAS 28, Sale or contribution of
assets between an investor and its associate or joint venture Date to be determined
The Group is in the process of making an assessment of the impact of these new standards and amendments to
existing standards upon initial application.