NOTES TO FINANCIAL STATEMENTS
30 June 2015
Annual Report 2015
Karin Technology Holdings Limited
55
1.
CORPORATE INFORMATION
Karin Technology Holdings Limited (the “
Company
”) is a limited liability company incorporated in Bermuda. The
registered office of the Company is located at Clarendon House, 2 Church Street, Hamilton, HM11, Bermuda.
The principal place of business of the Company is located at 2nd Floor, Karin Building, 166 Wai Yip Street, Kwun
Tong, Kowloon, Hong Kong.
During the year, the Company and its subsidiaries (collectively referred to as the “
Group
”) were involved in the
following principal activities:
(i)
the distribution of electronic components (“
Components Distribution
”);
(ii)
the provision of computer data storage management solutions and services (“
IT Infrastructure
”); and
(iii)
the distribution and retailing of consumer electronics products (“
Consumer Electronics Products
”).
2.1 BASIS OF PREPARATION
The consolidated financial statements of the Group have been prepared in accordance with International Financial
Reporting Standards (“
IFRSs
”) as issued by the International Accounting Standards Board (the “
IASB
”). They
have been prepared on a historical cost basis, except for investment properties, leasehold land and buildings,
and derivative financial instruments which have been measured at fair value. These financial statements are
presented in Hong Kong dollars and all values are rounded to the nearest thousand (HK$’000) except when
otherwise indicated.
BASIS OF CONSOLIDATION
The consolidated financial statements include the financial statements of the Company and its subsidiaries for
the year ended 30 June 2015. The financial statements of the subsidiaries are prepared for the same reporting
period as the Company. The results of subsidiaries are consolidated from the date on which the Group obtains
control, and continue to be consolidated until the date that such control ceases. Adjustments are made to bring
into line any dissimilar accounting policies that may exist.
Profit or loss and each component of other comprehensive income are attributed to the owners of the parent of
the Group and to the non-controlling interests, even if this results in the non-controlling interests having a deficit
balance. All intra-group assets and liabilities, equity, income, expenses and cash flows relating to transactions
between members of the Group are eliminated in full on consolidation.
The Group reassesses whether or not it controls an investee if facts and circumstances indicate that there are
changes to one or more of the three elements of control described in the accounting policy for subsidiaries
below. A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an
equity transaction.
If the Group loses control over a subsidiary, it derecognises (i) the assets (including goodwill) and liabilities of the
subsidiary, (ii) the carrying amount of any non-controlling interest and (iii) the cumulative translation differences
recorded in equity; and recognises (i) the fair value of the consideration received, (ii) the fair value of any investment
retained and (iii) any resulting surplus or deficit in profit or loss. The Group’s share of components previously
recognised in other comprehensive income is reclassified to profit or loss or retained profits, as appropriate, on
the same basis as would be required if the Group had directly disposed of the related assets or liabilities.
