Page 52 - ar2011

NATURAL COOL HOLDINGS LIMITED
Annual Report 2011 50
Notes to the Financial Statement
For the year ended 31st December 2011
2 Basis of preparation (Continued)
2.4 Uses of estimates and judgements (Continued)
Information about critical judgements in applying accounting policies, assumptions and estimation
uncertainties that have the most signifcant effect on the amounts recognised in the fnancial
statements is included in the following notes:
  Note 4 – estimated useful lives of property, plant and equipment
  Note 5 – measurement of recoverable amounts of goodwill and estimated
useful lives of intangible assets
  Note 6 – measurement of recoverable amount of investment properties
  Note 8 – valuation of carrying amount of inventories
  Note 12 – measurement of recoverable amount of non-current asset held
for sale
  Note 18 – recoverability of trade and other receivables
  Note 19 – revenue and proft recognition on uncompleted projects
  Note 29 – contingent asset
2.5 Changes in accounting policies
(i) Identification of related party relationships and related party disclosures
From 1 January 2011, the Group applied the revised FRS 24 Related Party Disclosures (2010)
to identify parties that are related to the Group and to determine the disclosures to be made
on transactions and outstanding balances, including commitments, between the Group and its
related parties. FRS 24 (2010) improved the defnition of a related party in order to eliminate
inconsistencies and ensure symmetrical identifcation of relationships between two parties.
The adoption of FRS 24 (2010) has not resulted in additional parties being identifed as
related to the Group. Transactions and outstanding balances, including commitments, with
related parties for the current and comparative years are disclosed in note 30 to the fnancial
statements.
The adoption of FRS 24 (2010) affects only the disclosures made in the fnancial statements.
There is no fnancial effect on the results and fnancial position of the Group for the current
and previous fnancial years. Accordingly, the adoption of FRS 24 (2010) has no impact on
earnings per share.
(ii) Other new standards and interpretations adopted
The Group also adopted other new/revised FRSs and interpretations which became effective
during the year. The initial adoption of these FRSs and interpretations did not have a material
impact on the fnancial statements.