68
SUNNINGDALE TECH LTD
ANNUAL REPORT 2014
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2014
NOTES TO THE FINANCIAL STATEMENTS
2.
Summary of significant accounting policies (cont’d)
2.26
Derivative financial instruments
Derivative financial instruments are classified as financial assets or liabilities at fair value through profit or loss and are initially
recognised at fair value on the date on which a derivative contract is entered into and are subsequently remeasured at fair value
at the end of each reporting period.
Any gains or losses arising from changes in fair value on derivative financial instruments are taken to profit or loss for the year.
2.27
Segment reporting
For management purposes, the Group is organised into operating segments based on their products and services which are
independently managed by the respective segment managers responsible for the performance of the respective segments
under their charge. The segment managers report directly to the management of the Company who regularly review the
segment results in order to allocate resources to the segments and to assess the segment performance. Additional disclosures
on each of these segments are shown in Note 36, including the factors used to identify the reportable segments and the
measurement basis of segment information.
2.28
Contingencies
A contingent liability is:
(a)
a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or
non-occurrence of one or more uncertain future events not wholly within the control of the Group; or
(b)
a present obligation that arises from past events but is not recognised because:
(i)
It is not probable that an outflow of resources embodying economic benefits will be required to settle the
obligation; or
(ii)
The amount of the obligation cannot be measured with sufficient reliability.
A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by the occurrence
or non-occurrence of one or more uncertain future events not wholly within the control of the Group.
Contingent liabilities and assets are not recognised on the balance sheet of the Group except for contingent liabilities assumed
in a business combination that are present obligations and which the fair values can be reliably determined.
3.
Significant accounting judgements and estimates
The preparation of the Group’s consolidated financial statements requires management to make judgements, estimates and
assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent
liabilities at the end of each reporting period. Uncertainty about these assumptions and estimates could result in outcomes that
could require a material adjustment to the carrying amount of the asset or liability affected in the future periods.
3.1
Judgements made in applying accounting policies
In the process of applying the Group’s accounting policies, management has made the following judgements, which have the
most significant effect on the amounts recognised in the consolidated financial statements.
