Annual Report 2019

113 Miramar Hotel and Investment Company, Limited Annual Report 2019 Notes to the Financial Statements 1 Significant accounting policies (Continued) (c) Changes in accounting policies (continued) HKFRS 16, Leases (continued) b. Lessee accounting and transitional impact (continued) As at 31 December 2018, the Group had no leases previously classified as finance leases. The Group presents right-of-use assets in ‘other property, plant and equipment’ and presents lease liabilities separately in the consolidated statement of financial position. The following table summarises the impacts of the adoption of HKFRS 16 on the Group’s consolidated statement of financial position: Carrying amount at 31 December 2018 Capitalisation of operating lease contracts Carrying amount at 1 January 2019 HK$’000 HK$’000 HK$’000 Line items in the consolidated statement of financial position impacted by the adoption of HKFRS 16: Other property, plant and equipment 266,792 150,435 417,227 Lease liabilities (current) – (45,908) (45,908) Lease liabilities (non-current) – (104,527) (104,527) c. Lessor accounting The accounting policies applicable to the Group as a lessor remain substantially unchanged from those under HKAS 17. (d) Subsidiaries and non-controlling interests Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. When assessing whether the Group has power, only substantive rights (held by the Group and other parties) are considered. An investment in a subsidiary is consolidated into the consolidated financial statements from the date that control commences until the date that control ceases. Intra-group balances, transactions and cash flows and any unrealised profits arising from intra-group transactions are eliminated in full in preparing the consolidated financial statements. Unrealised losses resulting from intra-group transactions are eliminated in the same way as unrealised gains but only to the extent that there is no evidence of impairment.