For the year ended 31st August, 2001截至二零零一年八月三十一日止年度財 務 報 表 附 註NOTES TO THE FINANCIAL STATEMENTSFOUNTAIN SET (HOLDINGS) LIMITED Annual Report 200142二零零一年年報 福田實業 （集團） 有限公司 F116_c.pdf1.GENERALThe Company is a public limited company incorporated inHong Kong and its shares are listed on The Stock Exchange ofHong Kong Limited (the “Stock Exchange”).The Company is an investment holding company. Theprincipal activities of its principal subsidiaries and jointlycontrolled entities are set out in notes 14 and 15, respectively.2.ADOPTION OF A REVISED STATEMENT OF STANDARD ACCOUNTING PRACTICEIn the current year, the Group adopted Statement of StandardAccounting Practice (“SSAP”) No. 14 (Revised) “Leases”(“SSAP 14 (Revised)”) issued by the Hong Kong Society ofAccountants for the first time.SSAP 14 (Revised) has introduced some amendments to thebasis of accounting for finance and operating leases, and to thedisclosures specified for the Groups leasing arrangements.These changes have not had any effect on the results for thecurrent or prior accounting periods and, accordingly, no priorperiod adjustment has been required. Disclosures for all of theGroups leasing arrangements have been modified so as tocomply with the requirements of SSAP 14 (Revised).Comparative amounts have been restated in order to achieve aconsistent presentation.3.SIGNIFICANT ACCOUNTING POLICIESThe financial statements have been prepared under thehistorical cost convention, as modified for the revaluation ofcertain properties, and are in accordance with accountingprinciples generally accepted in Hong Kong. The principalaccounting policies adopted are set out below:1.簡介本公司為在香港註冊成立之公眾有限公司。其股份於香港聯合交易所有限公司 （ 聯交所 ） 上市。本公司乃一間投資控股公司。其主要附屬公司及共同控制機構之主要業務分別載列於附註14及15內。2.採納一項經修訂之會計準則本年度本集團首次採納香港會計師公會頒佈之會計準則第14條 （經修訂） 租賃 。會計準則第14條 （經修訂） 對財務及營運租賃之會計基準及集團租賃安排之披露作出修改。此等變更並不影響本年或過往年度之業績，據此無須作出過往年度之調整。為符合會計準則第14條 （經修訂） 之要求，本集團租賃安排之披露已作出更改。比較數字亦已重列以達致統一之呈報方式。3.主要會計政策本財務報表 （除部份物業以重估值列出外） 乃按歷史成本及根據香港普遍採納之會計準則而編製，所採用之主要會計政策如下：截至二零零一年八月三十一日止年度財 務 報 表 附 註NOTES TO THE FINANCIAL STATEMENTSFor the year ended 31st August, 2001福田實業 （集團） 有限公司 二零零一年年報43二零零一年年報 福田實業 （集團） 有限公司 F116_c.pdf3.SIGNIFICANT ACCOUNTING POLICIES ContinuedBasis of consolidationThe consolidated financial statements incorporate the financialstatements of the Company and its subsidiaries made up to31st August each year.The results of subsidiaries acquired or disposed of during theyear are included in the consolidated income statement fromthe effective dates of acquisition or up to the effective dates ofdisposal, as appropriate.All significant intercompany transactions and balances withinthe Group are eliminated on consolidation.Goodwill/Capital reserveGoodwill or capital reserve represents respectively the excessor shortfall of the purchase consideration over the fair valueascribed to the Groups share of the separable net assets ofsubsidiaries or jointly controlled entities at the date ofacquisition. Goodwill or capital reserve is written off orcredited directly to reserves, respectively, in the year ofacquisition.On disposal of an investment in a subsidiary or a jointlycontrolled entity, the attributable amount of goodwillpreviously eliminated against or credited to reserves isincluded in the determination of the profit or loss on disposalof the business.Investments in subsidiariesA subsidiary is an enterprise in which the Company, directlyor indirectly, holds more than half of the issued share capital,or controls more than half of the voting power, or where theCompany controls the composition of its board of directors orequivalent governing body.3.主要會計政策續綜合基準綜合財務報表包括本公司及各附屬公司每年截至八月三十一日止之財務報表。於是年度內收購及出售附屬公司之業績已根據其收購或出售生效日期 （如適用） 包括在綜合收益賬內。集團內各公司之間的一切重大交易及結餘已於綜合賬目內對銷。商譽資本儲備商譽或資本儲備乃指收購附屬公司或共同控制機構時之代價與本集團應佔其個別淨資產於收購日之合理價值之差價，並在收購年度內即時分別在儲備賬中撇銷或計入。當出售附屬公司或共同控制機構時，其已在儲備賬中撇銷或計入之商譽或資本儲備將撥回計算出售資產之損益。附屬公司之投資附屬公司乃本公司直接或間接持有超過其已發行股本一半，或控制其一半以上之投票權，或控制其 董 事 會 或 相 等 法 定 組 織 之 公司。For the year ended 31st August, 2001截至二零零一年八月三十一日止年度財 務 報 表 附 註NOTES TO THE FINANCIAL STATEMENTSFOUNTAIN SET (HOLDINGS) LIMITED Annual Report 200144二零零一年年報 福田實業 （集團） 有限公司 F116_c.pdf3.SIGNIFICANT ACCOUNTING POLICIES ContinuedInvestments in subsidiaries ContinuedInvestments in subsidiaries are included in the Companysbalance sheet at cost, as reduced by any impairment lossesidentified.In previous years, investments in subsidiaries were included inthe Companys balance sheet at valuation, carried outannually, reflecting the underlying net asset values of thesubsidiaries at that date. With effect from 1st September, 2000,the directors reviewed the appropriateness of the aboveaccounting policy and adopted the accounting policy ofincluding investments in subsidiaries in the Companysbalance sheet at cost, as reduced by any impairment lossesidentified.This change in accounting policy has been applied to theCompanys financial statements retrospectively, resulting in adecrease in both the investments in subsidiaries and the capital