Page 87 - China Mobile Limited - Annual Report 2012

China Mobile Limited
Annual Report 2012
Notes to the Financial Statements
(Expressed in Renminbi unless otherwise indicated)
81
1 Significant Accounting Policies
(a) Statement of compliance
These financial statements have been prepared in accordance with all applicable International Financial Reporting
Standards (“IFRSs”) issued by the International Accounting Standards Board (“IASB”), which collective term
includes all applicable individual International Financial Reporting Standards, International Accounting Standards
(“IASs”) and Interpretations issued by the IASB. Hong Kong Financial Reporting Standards (“HKFRSs”), which
collective term includes all applicable individual Hong Kong Financial Reporting Standards, Hong Kong
Accounting Standards (“HKASs”) and Interpretations issued by the Hong Kong Institute of Certified Public
Accountants (“HKICPA”) and accounting principles generally accepted in Hong Kong, are consistent with IFRSs.
These financial statements also comply with HKFRSs, the requirements of the Hong Kong Companies Ordinance,
and the applicable disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange
of Hong Kong Limited (“Listing Rules”). A summary of the significant accounting policies adopted by the
Company and its subsidiaries (together referred to as the “Group”) is set out below.
(b) Basis of preparation of the financial statements
The consolidated financial statements for the year ended 31 December 2012 comprise the Group, the Group’s
interest in associates and a jointly controlled entity.
The measurement basis used in the preparation of the financial statements is the historical cost basis.
The preparation of financial statements in conformity with IFRSs and HKFRSs requires management to make
judgements, estimates and assumptions that affect the application of policies and reported amounts of assets,
liabilities, income and expenses. The estimates and associated assumptions are based on historical experience
and various other factors that are believed to be reasonable under the circumstances, the results of which form
the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent
from other sources. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates
are recognized in the period in which the estimate is revised if the revision affects only that period, or in the period
of the revision and future periods if the revision affects both current and future periods.
Judgements made by management in the application of IFRSs and HKFRSs that have significant effect on the
financial statements and major sources of estimation uncertainty are discussed in note 42.