Consolidated Profit And Loss Account Page 41
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48NOTES TO THE ACCOUNTS
c)
At present, the Group has recognised negative goodwill arising on acquisition of a subsidiary or an
associate after 1 April 2001 as deferred item and this is released to the profit and loss account on a
proportional basis, when the relevant assets acquired are sold or otherwise realised. For negative
goodwill arising on acquisition prior to 1 April 2001, the Group has relied upon the transitional
provisions set out in SSAP 30 “Business Combinations” such that negative goodwill has been taken to
capital reserves in the period in which it arose and has not been restated. The new HKFRS 3 requires
negative goodwill be recognised in the profit and loss account immediately. Under the transitional
arrangements of HKFRS 3, the existing negative goodwill classified as deferred item or taken to capital
reserves will be derecognised by way of an adjustment to the retained earnings at 1 April 2005. No
comparative figures are required to be adjusted. As a result, the Group’s net assets as at 1 April 2005 will
be increased by approximately HK$73.1 million.
The Group will be continuing with the assessment of the impact of the other new HKFRSs and other
significant changes may be identified as a result.
31. APPROVAL OF ACCOUNTS
The accounts were approved and authorised for issue by the Board of Directors on 14 June 2005.
73
Wheelock and Company Limited Annual Report 2004/05
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