Assignment financial markets(FM), Assignment international financial reporting(IFR)
Stacy444
Sample3.pdf
Content
1. Introduction............................................................................................................ 1
2. Conceptual framework for financial reporting in China (ASBE).......................... 1
3. Accounting for tangible asset (ASBE 4 & IAS 16)............................................... 3
3.1. Depreciation …………………………………………………………………. 3
3.2. Revaluation and cost models and fair value …………………………………. 6
4. Accounting for intangible asset (ASBE 6 & IAS 38)............................................ 8
4.1. Land ………………………………………………………………………….. 8
4.2. Research and Development ………………………………………………….. 8
4.3. Measurement after recognition ………………………………………………. 8
4.4. Amortization method and amortization period ………………………………... 9
4.4.1. Amortization period …………………………………………………………. 9
4.4.2. Amortization method ……………………………………………………...... 9
4.5. Goodwill ……………………………………………………………………… 10
5. Accounting for leases (ASBE 21 & IAS 17 & IFRS 16)....................................... 11
5.1. Finance lease ………………………………………………………………..... 12
5.2. Operating lease ………………………………………………………………. 12
5.3. Examples of lease …………………………………………………………….. 13
5.4. Issues and IFRS
5.4.1. Issues ……………………………………………………………………….. 13
5.4.2. IFRS 16 ……………………………………………………………………… 13
5.4.2.1. Recognition of leases ……………………………………………………… 14
5.4.2.2. Changes because of IFRS 16 ……………………………………………….15
5.4.2.2.1. Lessees accounting ……………………………………………………… 15
5.4.2.2.2. Lessors accounting ……………………………………………………… 16
5.4.2.2.3. Changes in financial statement …………………………………………. 16
6. Conclusion ............................................................................................................ 17
References................................................................................................................. 18
Appendix
Appendix 1.............................................................................................................. 23
Appendix 2.............................................................................................................. 24
Appendix 3.............................................................................................................. 25
Appendix 4.............................................................................................................. 27
Appendix 5.............................................................................................................. 29
Appendix 6.............................................................................................................. 30
1
1. Introduction
Accounting standards are very important in every country as it plays a role in
providing information which is reliable and relevant that can be used by investors to
make their securities pricing decisions.
Strong governmental and socialistic influences in China have made accounting
practices very different from the Western-style of accounting. The government in
China has control over all aspects of the society which also includes accounting.
Therefore, the financial statement must be prepared for the government's needs and
not according to the investor's needs to make financial decisions (Fang, 2007).
This report will look into the differences in Chinese accounting standards and
International Accounting Standards (IFRS/IAS) and discuss the accounting treatment
for tangible and intangible assets and leases.
2. Conceptual framework for financial reporting in China
The conceptual framework for financial reporting (CF) can be viewed as an attempt to
define the purpose and nature of accounting and it builds the concepts that underlie
the financial reporting for external users. It is also defined as a logically consistent
system that comprises basic concepts and mutually connected objectives (Wang,
2014).
CF is not an International Financial Reporting Standards (IFRS) and it does not exist
in China (Wang, 2014). According to Chalmers, Navissi & Qu (2010), the alternative
of CF in China is Accounting Standards for Business Enterprises (ASBE) that is
issued by the Chinese Ministry of Finance (MOF) - which is one of the public sectors
in China.
ASBE had been revising and had issued the new (CAS) Chinese Accounting Standard
and revised the basic standard (Nie, et al., 2013). The basic standard helped to set
standards for specific accounting standards and it also functions as a Chinese
meta-standard when the MFO formatted all the specific standards. It becomes part of
2
the Chinese accounting rules and this meta-standard has the force of law in China
(Wang, 2014).
Ibarra & Suez-Sales (2011) state ASBE is also known as “new PRC GAAP”. It
includes one basic standard and thirty-eight specific standards (Chen, et, al., 2015).
The basic standards in ASBE play the role of the Chinese conceptual framework for
financial reporting and all the enterprises in mainland China are forced to use this
standard (Dai, 2011). The thirty-eight specific standards are subject to basic standards
and it addresses most of the issues that are found in the IFRS (Mirza & Ankarath,
2015).
Topics of ASBE cover almost all the topics under the IFRS and roughly in line with
IFRS (Humphery-Jenner, 2012). However, in term of wording ASBE are easier to
understand comparing with IFRS but the accounting requirements are the same and
ASBE had achieved full convergence with IFRS (Nie, et al., 2013).
ASBE had converged with IFRS, but they still have differences in other aspects. The
first difference is impairment losses of some long-term assets such as investment
property which are irreversible, intangible assets, property, plant and equipment (PPE)
and investment other than financial assets. It is because all of these must be under
IFRS. Additionally, in China, the regulators believe that most of the impairments of
long-term assets are permanent and the recovery is an exception, not a rule (Fang,
2007).
Secondly, a financial statement prepared under ASBE and under IFRS will have a
different result in the income statement even if the financial statement is prepared for
the same events/company. The difference arises because of the effect of other bylaw's
requirements and reduction in accounting policy alternatives (Ding & Su, 2008).
3
Many large companies in China has issued B/H shares to foreign investors, and these
companies are required to prepare their financial statements under IFRS and Chinese
GAAP (ASBE) as they are dual-listed on both U.S. or Hong Kong and Chinese
exchange (Chalmers, Navissi & Qu, 2010; Ding & Su, 2008). Different financial
statements are shown in Appendix 1, 2, 3 and 4.
(501 words)
3. Accounting for tangible assets (ASBE 4 & IAS 16)
Tangible assets (IAS 16 in IFRS) refers to fixed assets (ASBEs 4 in China) There are
the accounting issues that will cause differences in the net income and net assets, such
as fixed asset depreciation (Li, 2017) and revaluation and cost models (Rutledge, et al.,
2015).
3.1. Depreciation
There are a few differences between IFRS and ASBE in depreciation methods
(Humphery-Jenner, 2012). Under IFRS (IAS 16), it stated that each significant
component of an item of PPE has to be depreciated separately. However, ABSE 4
only requires parts with different economic characteristics or useful life to be
4
separately depreciated and it is based on the expectation of future economic benefits
of the assets to select an appropriate depreciation method (Deloitte, 2006).
Different depreciation methods will lead to different net assets and net income under
IFRS and ASBE. This is because different depreciation methods will affect the result
of the depreciation expense (Rutledge, et al., 2015). The depreciation methods include
the straight-line method, units-of-production, etc. (IAS-Plus, 2002). Additionally,
sometimes the useful life cycle of fixed assets also will cause different result of
depreciation expense in the financial statement (IAS-Plus, 2002). This can be seen in
the reports of China Eastern Company in appendix 5 (B).
Most company will depreciate their fixed assets through straight-line methods under
IFRS and ASBE. IFRS adopted all types of the depreciation methods in all industry,
but ASBE does not. For example in China, enterprises can use an accelerated method
only if they are in special industries (Salustri, 2017).
China Petroleum and Chemical Corporation (SINOPEC CORP is a company engaged
in oil and gas exploration and production. And the tables below show that the
company is using straight-line methods to depreciated their plants and equipment and
used accumulated method depreciated oil and gas properties.
Table 2: Depreciation on straight-line basis
5
Table 2 shows that the percentages are around 39% - 42%, this means the depreciation
expense for plant and equipment is almost the same therefore it can be proved that
this company using straight-line method to depreciate their plant and equipment.
Table 3: Depreciation on accumulated method
Compare with table 2, the depreciation expense in table 3 is increasing every year,
which is very different from the straight-line basis which the percentages are always
similar.
The conclusion is that different depreciation method will have different depreciation
expense.
Moreover, under ASBE, an asset that after full depreciation but still using must be
separately measured and land must be excluded even if the land is the real property
(Zhang & Andrew, 2010). The reason is because all the lands belong to the state, but
companies or individual still can lease the land to others up to 75 years (Lawson,
2008).
The land is not recognizable in CAS/ASBE, in ASBE land will only be measured as
'land use right' in financial reports. The land use right is classified as an intangible
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asset and stated in the balance sheet (Lawson, 2008). However, for western companies
that adopted IFRS, land is classified as tangible asset if the companies have control
over the land and it is not a depreciable asset so the value of land will remain
unchanged in the balance sheet (Zhang & Andrew, 2010) which can refer to
consolidated statement of financial statement of China Eastern in appendix 4 (note 1).
3.2. Measurement after the recognition measurement
The recognition measurement for fixed asset in IFRS and ASBE also had some
differences. The initial recognition measurement of ASBE 4 and IAS 16 is the same
like initial costs are commonly capitalized. However, after recognition measurement,
companies that adopted IFRS can choose either revaluation method or cost method
while companies using ASBE only can use the cost method (Rutledge, et al., 2015).
Because ASBE prohibits the revaluation model, therefore companies do not have to
recognize the revalue amount in income or equity.
Revaluation model refers to calculate the fixed assets at its fair values at the
revaluation date and less any subsequent accumulated impairment losses and
subsequent accumulated depreciation and this model will reflect changes in fair value
(Baker, 2011). Cost model refers to calculate the assets at its costs and less any
accumulated impairment losses and any accumulated depreciation (Baker, 2011).
Because of the difference after the recognition measurements, the financial statement
under ASBE and IFRS is become different and the subsequent depreciation expenses
also will be affected (Rutledge, et al., 2015). The recognition measurement of IFRS
and ASBE is different is because of the social ideology, in western countries it is
guided by the market economy; however, in China, it is more preferred prudence. The
standards in CAS mostly are guided by prudence and not the market economy
reflection (Li, 2017).
Fair value is an important concept in IFRS and it will be reflected by the revaluation
model. China had adopted the fair value accounting (FVA), but in particular
circumstances its flexibility of using it is limited (Miao, 2016). According to Peng &
7
Bewley (2010), China adopted FVA for financial instruments, but in non-financial
fixed asset investments there still had some discrepancies. For example, fair value will
not be allowed for PPE (Property, plant and equipment) if the active market is absent.
Until today, China government still controls over the macro economy and the Chinese
share-market, therefore China market is not a free market so it is difficult to apply
FVA. The limited adoption of FVA will cause the doubt on the 'convergence' between
CAS and IFRS, but China still reserved FVA (Peng & Bewley, 2010).
FVA requires professional to do judgment, however, the nature of judgment is
subjective and this is viewed as the earnings management opportunities (Harding &
Ren, 2007). The example is He et al. (2010) states that the FVA on available-for-sale
securities had become an earning management tool that helps the company to meet
earning targets. Some other authors also stated that FAV can be abused as a means on
manipulating company financial information if it had been fully adopted (Liu, 2010).
This is the reason why China still reserved FVA and had developed their own version
of FVA (Peng & Bewley, 2010).
The table following show the differences in IFRS and ASBE in tangible assets:
(905 words)
8
4. Accounting for intangible assets (ASBE 6 & IAS 38)
IAS 38 (intangible asset) refers to ASBE 6 in China, but these two types of accounting
standard had some differences and got some issues on it.
4.1. Land
In accounting for tangible asset had mentioned that the land is belongs to the state, so
companies normally only obtain the land-use-right, and this is recognized as an
intangible asset and it needs to be amortized over its approved land-use-period (Zhang
& Andrew, 2010).
Moreover, Chinese regulation had uniform extreme in the accounting treatments for
intangible assets such as research and development, measurement after recognition
and amortization method and amortization period and goodwill.
4.2. Research & Development
Under ASBE all the expenditures on Research & Development (R&D) will be
recognized as period expenses under the profit or loss at the time they incurred (Che,
2007). However, IAS 38 classifies the R&D into two phases which are the
development phase and research phase and set different recognition rules.
Expenditures that incurred because of the internal project's research phase and/or
research can be recognized as expenses when it incurred. Additionally, the intangible
assets that arise from the internal project's development phase or from development
can be recognized under certain conditions. In order to recognize the expenditures on
internal project's development phase or development, accountants need to give large
number scope for professional judgment under IAS 38. But in ASBE, they use the
simple approach to uniformity and did not give accountants to exercise subject
judgment (Elliott & Elliott, 2011).
4.3. Measurement after recognition
After the recognition, the measurement of an intangible asset is different under ASBE
and IFRS. Similar to ASBE 4, IAS 38 allows the entity to adopted either cost model
9
and/or revaluation model, while ASBE 6 only allow the entity to use cost model and
requires entity to review the intangible asset's carrying amounts periodically, at least
at the end of every year (Mirza & Ankarath, 2015).
4.4. Amortization method and amortization period
One of the reasons that ASBE 6 and IAS 38 are different is due to the prescribing
issues such amortization method and amortization period (Che, 2007).
4.4.1. Amortization period
ASBE 6 requires that the amortization period of the intangible asset must be resolute
by the relevant law or contract. If the law did not set the effective period and the
contract did not set the beneficial period, the amortization period of the intangible
asset cannot be more than 10 years (Liu, 2010). However, IAS 38 did not set the
maximum amortization period to the intangible asset. On the contrary, IAS 38
requires the entity to evaluate whether the intangible asset's useful life is indefinite or
finite. Intangible asset with a finite useful life will be amortized and vice versa (Elliott
& Elliott, 2011).
4.4.2. Amortization method
When choosing amortization method, ASBE 6 stipulated that an intangible asset's cost
must be amortized evenly over their expected useful life. Enterprises only can take the
straight-line method to amortize their intangible asset because this is the only
amortization method which is permitted under ASBE (Che, 2007).
Instead, IAS 38 allows enterprises to adopt a variety of amortization methods which
include the unit of production method, diminishing balance method and straight-line
method. In practice, the enterprise will select the amortization method to be used on
the basis of the expected consumption pattern of the expected future economic
benefits which embodied in the intangible asset and applied it consistently (Elliott &
Elliott, 2011).
10
4.5. Goodwill
Accountants need to treat goodwill when there is the emergence of a business
combination (Lin, 2015). Goodwill is a special intangible asset and is complicated.
Moreover, goodwill is subject to impairment tests and will not be amortized (Qu, et
al., 2012).
11
In China the goodwill is related to the enterprises; therefore it cannot exist singly and
cannot be sold by separating from enterprise's identifiable asset. Goodwill can be
purchased or innovative if it is an intangible asset. For example, if an enterprise
purchases another enterprise, then the purchased goodwill can be referring as an
intangible asset. For non-state-owned enterprises, they can select other methods to
treat goodwill as they are not stipulated to follow the regulations (Qu, et al., 2012).
In China, the price of a company buying another company which is less than the
purchased company's identifiable net assets is called negative goodwill. This goodwill
is confirmed become liabilities of a company, and this goodwill must be amortized in
5 years (Lin, 2015). However, in IFRS the negative goodwill is put in the current
profit or loss, but not all negative goodwill is coming from bargain purchases. In
certain circumstances, the negative goodwill can attribute to the acquirer's potential
loss. Therefore the other goodwill can temporarily record in other liability accounts or
other comprehensive income at the acquisition date (Qu, et al., 2012).
Under ASBE, negative goodwill and goodwill will be amortized on the straight-line
basis. However, under IFRS, which refers to IFRS 3, positive goodwill will no longer
be amortized from 2005 and the goodwill will be tested annually for impairment
(Zhang & Andrew, 2010) which can refer to the note 1 of China Eastern in Appendix
6.
(860 words)
5. Accounting for leases (ASBE 21 & IAS 17 & IFRS 16)
Chinese accounting standards had recognized two types of leases which are operating
and finance leases, and it is similar to most Western Country and IFRS (Fales, 2006).
This accounting standard is important in China as the World Leasing Yearbook (2010)
had stated that China became the second largest leasing market in the work and
12
probably will be the largest one in the future.
5.1. Finance lease
In China, PRC law applied the different standard in order to define the finance leases.
For accounting purposes, the finance lease in ASBE 21 (similar to IAS 17) is the
benchmark which can be used to assess whether the lease is operating or finance lease
(Globe Business Media Group, 2007).
Under ASBE 21, lease will be recognized as a finance lease if the amount of present
value of minimum lease payment is similar to the leased asset's original carrying
amount which recorded in the book of the lessor. However, under IAS 17 leases can
be considered as a finance lease if the present value of the minimum lease payment is
equals to the leased asset’s fair value (Moynihan, 2017).
Finance leases that under ASBE 21 should be capitalized as liabilities and assets in the
balance sheet and the lessee is allowed to depreciate the asset in straight-line method
over leasing term as if they are the owner of the asset (Globe Business Media Group,
2007).The net income, from leaseback and sales transaction which recognized as
finance lease can record on the balance sheet and deferred revenue will be amortized
at a straight-line method over lease term can be recognized on the income statement
(Mirza & Ankarath, 2015). Under IFRS, finance leases are put in the balance sheet
both as the obligation of paying future lease payment (appendix 4, note 2) and as an
asset.
5.2. Operating leases
Another lease is operating lease. Under ASBE 21 leaseholders will records operating
lease payment in the profit or loss or the related assets cost as expense on a
straight-line basis over the lease term and record the lease income in the income
statement as revenue which similar with the IAS 17 (which can refer to the
consolidated statement of profit and loss and other comprehensive income of China
Eastern in Appendix 3, note 1) (Berman, 2016). Additionally, the cost related to the
13
operating leases will not appear on the balance sheet but appear in the income
statement (Tencent, 2016).
5.3. Example of leases
One of the examples of leases is leasehold land, but the treatments for leasehold land
are different in ASBE and IFRS. Under IFRS, the leasehold interest in land shall be
assorted as an operating lease in income statement unless meets certain criteria and
can classify as an investment property when under the fair value model. However,
under ASBE 6, the land use right (leasehold interest in land) is classified as an
intangible asset unless the land use rights had to meet certain criteria and it can
classify as investment properties according to ASBE 3 (Deloitte, 2006).
5.4. Issues and IFRS 16
5.4.1. Issues
In practice, most of the company used both finance and operating leases, but
operating leases will cause issues because company will be motivated to classify their
lease as operating lease so that they can use the economic resource that is not on the
balance sheet and the associated liability is omitted (Fales, 2006). Because of this
issue, IASB had issued the new accounting standard for leases which are IFRS 16 that
replaces IAS 17 and will effective in the year ended of 2019.
IFRS 16 still not effective, therefore in China, its current lease accounting standards
still allow lessees using off-balance sheet transactions through operating leases.
Enterprises in China had tried to use operating leases to minimize their debt ratio, but
the problem is that the leased asset's residual risks are still borne by lessees and the
fact shown that most of the operating leases are not real (Shi & Xu, 2015).
5.4.2. IFRS 16
The new definition of a lease under IFRS 16 is a contract or contains that conveys the
right to control the use of an identified asset for the time period in exchange for
consideration (Fales, 2006).
14
5.4.2.1. Recognition of leases
Identified asset means that the asset can be identified either implicitly or explicitly.
The issue is if the lessors had a substantive right to substitute the asset, there is no
identified asset then it means a contract does not contain a lease (Chambers, et al.,
2015).
The next criteria in determining whether a lessee had controls over the use of the
identified assets are whether the lessees had their right to get all the economic benefits
from the use of the asset over the lease term. The ways to demonstrate is sub-leasing
the asset or having exclusive use of the asset over the lease term. The economic
benefits that come from the use of the asset include by-products and primary outputs
and also including the potential cash flows that arise from this asset, if there are no
economic benefits, it means contract does not contain the lease (Shi & Xu, 2015).
The final criteria are there a right for lessees to direct use of the asset. During the
lease term, lessees have the right to decide how they use the identified asset and for
what purpose, such as the right to change when the output will be produced, where the
output will be produced and the quantity of the output, these decisions that can affect
the economic benefits. If lessees cannot produce the output that they want, they do not
have the right to direct use the asset, it means leases did not contain in the contract
(Chambers, et al., 2015).
15
Table 3
(Source: pwc (2016) in depth a look at current financial reporting issues. Available at:
https://www.pwc.com/gr/en/media-centre/ifrs-news/assets/ifrs16-a-new-era-of-lease-a
ccounting.pdf (Accessed: 21 July 2017).)
5.4.2.2. Changes because of IFRS 16
Unlike IAS 17 and ASBE 21, IFRS 16 will remove the finance and operating leases
and introduces a single accounting model for the lessees, thus it will change the
enterprise accounting for lease transactions, and may have significant effect on the
business model, financial performance and financial position of the enterprise
(Chikatsu, 2016).
5.4.2.2.1. Lessees accounting
For lessees accounting, because finance and operating leases will not long exist,
therefore lessees will recognize lease liabilities and right-of-use for all leases and they
can have the exemptions for low-value and short-term leases (leases less than 12
month or 12 months) (Chikatsu, 2016). The lease liabilities also mean the obligation
of the enterprise to make the future lease payment.
16
5.4.2.2.2. Lessors accounting
For lessor accounting, IFRS 16 substantially carries forward the accounting
requirements for lessor in IAS 17, therefore a lessor can continue classified the leases
as finance or operating leases and account them differently but with greater disclosure
requirements (Salustri, 2017).
5.4.2.2.3. Changes in financial statement
IFRS 16 will cause some changes in the financial statement such as income statement,
balance sheet and cash flow.
First, the calculation of EBITDA in income statement will be affected because of the
change in interest expense. The interest expense is the lease expense and the
depreciation charge for the leased asset also will be put in the income statement and
this also will affect the calculation of EBITDA (Moynihan, 2017).
Table 2 (The change in EBITDA in the income statement)
(Source: IFRS (2016) IFRS 16. Available at:
file:///C:/Users/win8/Downloads/IFRS-16-project-summary.pdf (Accessed: 21 July
2017).）
Secondly, the balance sheet will be affected as IFRS 16 will cause more leases put
into the balance sheet, therefore enterprises that use lease assets in their business will
find that the increase in reported liabilities and assets. This new standard will affect
many sectors such as airlines that lease aircraft and even the retailers that lease stores.
17
The greater the lease portfolio is, the greater the impact on the key reporting metrics
(Moynihan, 2017).
Finally, cash flow statement also will be affected by IFRS 16, it is because the
previous lease payment was classified as operating leases will not present as operating
cash flows. Under IFRS 16 lease payments can be presented as operating cash flow
only if the part of the lease payments is reflected the interest on the lease liability
(Berman, 2016). Moreover, the cash payment that related to the major portion of the
lease liability are assorted as financing activities and the payment which related to
leases of low-value assets, short-term assets and variable lease payments are remain
presented as operating activities in cash flow statement (Salustri, 2017).
IFRS 16 attract the attentions from leasing industry of China, but because of the
restriction of current legal system of China, underdeveloped securities market and
other circumstances, leasing accounting standards in China cannot converge directly
with IFRS, if not, there will have some bad effects on the growth of the financial
leasing industry in China (Shi & Xu, 2015). With this reason, many Chinese
companies still not using IFRS 16 but started to learn how to apply it.
(1250 words)
6. Conclusion
Countries in the world especially Western countries were using conceptual framework
and IFRS/IAS to prepare the financial statement, but in China, local enterprises are
forced to use ASBE to prepare their income statement. ASBE is similar to IFRS, but
they still have some difference in some accounting treatment. However, China had
faced the gap about the short of professional accountants (people with international
perspectives) and this is the root that causes some of the challenges. Moreover,
accounting for the tangible asset, intangible asset and leases under ASBE and IFRS
had some similar but also had some differences that may cause some issue to happen
and different treatment occur.
18
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23
Appendix
China Eastern Airlines Corporation Limited is a state-owned, People’s Republic of
China Company. It was established in the People’s Republic of China in 1995 as a
joint stock company as part of the restructuring of a state owned enterprise.
Appendix 1
Consolidated Statement of Profit or Loss
(Prepared in accordance with the PRC Accounting Standards)
For the year ended 31 December 2016
24
25
26
(Source: China Eastern (2016) World - Class Hospitality with Eastern Charm Annual
Report 2016. China: Available at: http://en.ceair.com/upload/2017/4/25103433258.pdf
(Accessed: 21 July 2017).)
Note 1: Operating lease payment.
27
Appendix 4
Consolidated Statement of Financial Position
(Prepared in accordance with International Financial Reporting Standards)
For the year ended 31 December 2016
28
(Source: China Eastern (2016) World - Class Hospitality with Eastern Charm Annual
Report 2016. China: Available at: http://en.ceair.com/upload/2017/4/25103433258.pdf
(Accessed: 21 July 2017).)
Note1: Lease prepayments represent unamortized prepayments for land use rights.
Note 2: The obligation of pay future lease payment for finance leases.
29
Appendix 5
(b) Under the PRC Accounting Standards, before 30 June 2001, the depreciation of
aircraft was using straight-line basis with expected useful lives of 10 to 15 years and
the residual value is 3%. While from 1 July 2001, the depreciation of aircraft is still
using straight-line basis but the expected useful lives is increase to 15 years to 20
years and the residual value is 5% of costs. The change was applied prospectively
which resulted in the difference in the carrying amounts under IFRSs and the PRC
Accounting Standards.
30
Appendix 6
(Source: JILIN Chemical Industrial Company Limited Annual Report (2005) Annual
report 2005. Available at:
http://www.hkexnews.hk/listedco/listconews/SEHK/2003/0509/368/F127.pdf
(Accessed: 21 July 2017).)
