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Notes to the Consolidated Financial Statements

31st March 2015

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

2.4 Foreign currency translation (continued)

(d) Disposal of foreign operation and partial disposal

On the disposal of a foreign operation (that is, a disposal of the group’s entire interest in a
foreign operation, or a disposal involving loss of control over a subsidiary that includes a
foreign operation, a disposal involving loss of joint control over a joint venture that includes a
foreign operation, or a disposal involving loss of significant influence over an associate that
includes a foreign operation), all of the currency translation differences accumulated in equity
in respect of that operation attributable to the owners of the Company are reclassified to
profit or loss.

In the case of a partial disposal that does not result in the Group losing control over a
subsidiary that includes a foreign operation, the proportionate share of accumulated currency
translation differences are re-attributed to non-controlling interests and are not recognised
in profit or loss. For all other partial disposals (that is, reductions in the group’s ownership
interest in associates or joint ventures that do not result in the group losing significant
influence or joint control) the proportionate share of the accumulated exchange difference is
reclassified to profit or loss.

2.5 Leasehold land and land use rights

Leasehold land and land use rights classified as operating leases are stated at cost less
accumulated amortisation and accumulated impairment losses. Cost mainly represents
consideration paid for the rights to use the land from the date the respective rights were granted.
Amortisation of leasehold land and land use rights is calculated on a straight-line basis over the
period of the rights.

2.6 Property, plant and equipment

Leasehold land classified as finance lease and all other property, plant and equipment are stated at
historical cost less depreciation and impairment losses. Historical cost includes expenditure that is
directly attributable to the acquisition of the items.

Subsequent costs are included in an asset’s carrying amount or recognised as a separate asset,
as appropriate, only when it is probable that future economic benefits associated with the item will
flow to the Group and the cost of the item can be measured reliably. The carrying amount of the
replaced part is derecognised. All other repairs and maintenance are charged to the consolidated
income statement during the financial period in which they are incurred.

ALCO HOLDINGS LIMITED ANNUAL REPORT 2015 41