综合财务报表附注（2）

NotestotheConsolidatedFinancialStatementsFortheyearended31March2007DeccaHoldingsLimitedAnnualReport2007611.GENERALTheCompanyisincorporatedinBermudaasanexemptedlimitedliabilityanditssharesarelistedonTheStockExchangeofHongKongLimited.ItsultimateholdingcompanyisPeasedowEnterprisesLimited,incorporatedintheBritishVirginIslands.TheaddressoftheregisteredofficeandprincipalplaceofbusinessoftheCompanyaredisclosedinthe“CorporateInformation”totheannualreport.ThefunctionalcurrencyoftheCompanyisRenminbi(“RMB”),thecurrencyoftheprimaryeconomicenvironmentinwhichtheCompanyoperates.Forthepurposeoftheconsolidatedfinancialstatementsandconvenienceofthefinancialstatementsusers,theresultsandfinancialpositionoftheGrouparepresentedinHongKongdollars.TheprincipalactivitiesoftheGrouparemanufacturingandtradingoffurnitureanddecorationmaterials,andinteriordecorationworks.2.APPLICATIONOFNEWANDREVISEDHONGKONGFINANCIALREPORTINGSTANDARDS(“HKFRS”)Inthecurrentyear,theGrouphasapplied,forthefirsttime,anumberofnewstandards,amendmentsandinterpretations(“newHKFRSs”)issuedbytheHongKongInstituteofCertifiedPublicAccountants(“HKICPA”),whichareeithereffectiveforaccountingperiodsbeginningonorafter1December2005,1January2006or1March2006.TheadoptionofthenewHKFRSshadnomaterialeffectonhowtheGroup’sresultsforthecurrentorprioraccountingperiodshavebeenpreparedandpresented.Accordingly,nopriorperiodadjustmenthasbeenrequired.FinancialguaranteecontractsInthecurrentyear,theGrouphasappliedHKAS39andHKFRS4(Amendments)“FinancialGuaranteeContracts”whichiseffectiveforaccountingperiodsbeginningonorafter1January2006.AfinancialguaranteecontractisdefinedbyHKAS39“FinancialInstruments:RecognitionandMeasurement”asacontractthatrequirestheissuertomakespecifiedpaymentstoreimbursetheholderforalossitincursbecauseaspecifieddebtorfailstomakepaymentwhendueinaccordancewiththeoriginalormodifiedtermsofadebtinstrument.TheGroupactsastheissuerofthefinancialguaranteecontractsPriorto1April2006,financialguaranteecontractswerenotaccountedforinaccordancewithHKFRS4andthosecontractsweredisclosedascontingentliabilities.Aprovisionforfinancialguaranteewasonlyrecognisedwhenitwasprobablethatanoutflowofresourceswouldberequiredtosettlethefinancialguaranteeobligationandtheamountcanbeestimatedreliably.621.PeasedowEnterprisesLimited2.394394NotestotheConsolidatedFinancialStatementsFortheyearended31March2007DeccaHoldingsLimitedAnnualReport2007632.APPLICATIONOFNEWANDREVISEDHONGKONGFINANCIALREPORTINGSTANDARDS(“HKFRS”)(Continued)Financialguaranteecontracts(Continued)TheGroupactsastheissuerofthefinancialguaranteecontracts(Continued)Upontheapplicationoftheseamendments,afinancialguaranteecontractissuedbytheGroupandnotdesignatedasatfairvaluethroughprofitorlossisrecognisedinitiallyatitsfairvaluethataredirectlyattributabletotheissueofthefinancialguaranteecontract.Subsequenttoinitialrecognition,theGroupmeasuresthefinancialguaranteecontractatthehigherof:(i)theamountdeterminedinaccordancewithHKAS37“Provisions,ContingentLiabilitiesandContingentAssets”;and(ii)theamountinitiallyrecognisedless,whenappropriate,cumulativeamortisationrecognisedinaccordancewithHKAS18“Revenue”.Inrelationtoafinancialguaranteegrantedtoabankovertherepaymentoffinanceleasesbyanassociate,theGrouphasappliedthetransitionalprovisionsinHKAS39.TheadoptionofthestandardhadnomaterialeffectonhowtheGroup’sresultsforthecurrentand/orprioraccountingperiodsarepreparedandpresented.Accordingly,nopriorperiodadjustmenthasbeenrequired.TheGrouphasnotearlyappliedthefollowingnewandrevisedstandards,amendmentorinterpretationsthathavebeenissuedbutarenotyeteffective.ThedirectorsoftheCompanyanticipatethattheapplicationofthesestandards,amendmentorinterpretationswillhavenomaterialimpactontheresultsandthefinancialpositionoftheGroup.HKAS1(Amendment)Capitaldisclosures1HKAS23(Revised)Borrowingcosts2HKFRS7Financialinstruments:Disclosures1HKFRS8Operatingsegments2HK(IFRIC)-INT8ScopeofHKFRS23HK(IFRIC)-INT9Reassessmentofembeddedderivatives4HK(IFRIC)-INT10Interimfinancialreportingandimpairment5HK(IFRIC)-INT11HKFRS2-GroupandTreasuryShareTransactions6HK(IFRIC)-INT12Serviceconcessionarrangements71Effectiveforaccountingperiodsbeginningonorafter1January2007.2Effectiveforaccountingperiodsbeginningonorafter1January2009.3Effectiveforaccountingperiodsbeginningonorafter1May2006.4Effectiveforaccountingperiodsbeginningonorafter1June2006.5Effectiveforaccountingperiodsbeginningonorafter1November2006.6Effectiveforaccountingperiodsbeginningonorafter1March2007.7Effectiveforaccountingperiodsbeginningonorafter1January2008.642.(i)37(ii)18391123271828239410511261271234567NotestotheConsolidatedFinancialStatementsFortheyearended31March2007DeccaHoldingsLimitedAnnualReport2007653.SIGNIFICANTACCOUNTINGPOLICIESTheconsolidatedfinancialstatementshavebeenpreparedonthehistoricalcostbasisandinaccordancewithHongKongFinancialReportingStandardsissuedbytheHKICPA.Inaddition,theconsolidatedfinancialstatementsincludeapplicabledisclosuresrequiredbytheRulesGoverningtheListingofSecuritiesonTheStockExchangeofHongKongLimitedandbytheHongK