1. SIGNIFICANT ACCOUNTING POLICIES
The consolidated accounts include the accounts of the company
and its subsidiary made up to 31 December each year. The results
of subsidiaries acquired or disposed of during the year are included
in the consolidated profit and loss account from or to the date
of their acquisition or disposal, as appropriate. All material
intercompany transactions and balances are eliminated on consolidation.
In 1995, no consolidated accounts were prepared as the result
and net worth of the subsidiary were considered by the Directors
to be immaterial to the Group. The amounts shown for 1995 represent,
in all material respects, the comparatives for both the Group's
and the Company's accounts.
Investment in subsidiary in the Company's balance sheet is stated
at cost less any provision for permanent diminution in value as
determined by the Directors.
The consolidated profit and loss account includes the Group's
share of the post-acquisition results of its associated companies
for the year. In the consolidated balance sheet, investments in
associated companies are stated at the Group's share of their
net assets.
The results of associated companies are included in the Company's
profit and loss account to the extent of dividends received and
receivable, providing the dividend is in respect of a period ending
on or before that of the Company and the Company's right to receive
the dividend is established before the accounts of the Company
are approved by the Directors. In the Company's balance sheet,
investments in associated companies are stated at cost less any
provision for permanent diminution in value as determined by the
Directors.
Foreign currency loans for purchases of buses and equipment which
are hedged by forward foreign exchange contracts taken out with
the lender are stated at the appropriate contracted rates of exchange.
With this exception, foreign currency balances at the year end
are translated into Hong Kong dollars at the rates of exchange
ruling at the balance sheet date and foreign currency transactions
during the year are translated into Hong Kong dollars at the rates
of exchange ruling at the transaction dates. Differences on foreign
currency translation are taken to the profit and loss account.
Spare parts and stores are valued at cost less provision.
Cost includes cost of purchases of materials, direct labour and
an appropriate proportion of overheads.
Amortisation and depreciation is provided at rates calculated
to write off the cost or valuation of fixed assets over their
estimated useful lives as follows:
Leasehold land Over the terms of the leases Buildings 50 years or over the term of the lease
including extension or renewal period
whichever is lessNew buses 7 1/7% p.a. on cost Light duty coaches and other motor vehicles 16 2/3% p.a. on cost Plant and machinery, lifts, fixtures and equipment 14 2/7% p.a. on cost Tools 50% p.a. on reducing balance Computer equipment 20% p.a. on cost
Payments under operating leases are charged to the profit and
loss account on a straight line basis over the periods of the
respective leases.
Deferred taxation is provided using the liability method in respect
of the taxation effect arising from all timing differences which
are expected with reasonable probability to crystallise in the
foreseeable future.
2. TURNOVER
3. OPERATING PROFIT
4. DIRECTORS' REMUNERATION
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