Huawei 2014 Annual Report Download - page 104

102 Huawei Investment & Holding Co., Ltd. 2014 Annual Report
(c) Acquisition of subsidiaries
i) Neul Limited
On September 16, 2014, Huawei Technologies
Coöperatief U.A., a wholly-owned subsidiary of
the Company, acquired 100% equity interest in
Neul Limited ("Neul") from a third party, for a
consideration of GBP15 million (equivalent to
CNY142 million) in cash.
Neul is based in Cambridge, UK and was incorporated
in September 2010. Nuel develops and supplies
technology to allow network operators to provide a
scalable, low power network service to connect small
low power devices to their online digital presence in
the Cloud. The acquisition of Neul gives the Group
improved access to the market in the "Internet of
Things". The major asset item recognised at the date
of acquisition is the intangible asset as disclosed
in note 10; and the goodwill arising from the
acquisition is disclosed in note 9.
ii) CD Investment
As disclosed in note 14, the Company acquired the
51% equity interests in CD investment (previously
a joint venture of the Group) from a third party in
March 2014 and CD Investment became a wholly-
owned subsidiary of the Company. At the date
of acquisition, CD Investment had no significant
business transactions other than the holding of
the ownership titles of the property, plant and
equipment that are used by other group entities.
Therefore, CD Investment's operation does not
constitute a business as defined under IFRS 3,
Business Combination. Accordingly, the acquisition
is accounted for as purchase of assets. The property,
plant and equipment items and long-term leasehold
prepayments acquired from the transaction are
disclosed in note 11 and note 12, respectively.
29. Comparative figures
During the year, the management has determined that
certain operating support activities in the Group's selling
organization, previously recorded as selling expenses,
are more appropriately presented as administrative
expenses, and that the product management activities
for product divisions, previously presented as selling
expenses, should be changed to research and
development expenses to more accurately reflect their
function.
As a result of financial statement process improvement,
management determined that certain cash receipt
from customers, are more appropriately presented as
advances received within other payables, rather than
being offset against the receivables due from the same
customer.
The comparatives have been represented to comply
with the current year presentation. These changes in
presentation have had no impact on reported operating
profit or net assets.