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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the six months ended 30 September 2019

1. Basis of preparation and accounting policies
These unaudited consolidated financial statements have been prepared in accordance
with Hong Kong Accounting Standard (“HKAS”) 34 “Interim Financial Reporting” issued
by the Hong Kong Institute of Certified Public Accountants (the “HKICPA”) and the
disclosure requirements of Appendix 16 to the Rules Governing the Listing of Securities
on The Stock Exchange of Hong Kong Limited (the “Listing Rules”).

These consolidated financial statements should be read in conjunction with the annual
financial statements for the year ended 31 March 2019.

The accounting policies and methods of computation used in the preparation of these
condensed consolidated financial statements are consistent with those used in the
annual financial statements for the year ended 31 March 2019, except the Group has
adopted certain HKASs and Hong Kong Financial Reporting Standards (“HKFRS”) which
are mandatory for the financial year beginning 1 April 2019.

2. Changes in accounting policies
The following new and amendments to standards are mandatory for the first time for
the financial year beginning 1 April 2019:
HKFRS 16 Leases
HK(IFRIC) – Int 23 Uncertainty over Income Tax Treatments
Amendments to HKAS 19 Plan Amendment, Curtailment or Settlement
Amendments to HKAS 28 Long-term Interests in Associates and Joint Ventures
Amendments to HKFRS 9 Prepayment Features with Negative Compensation
Amendments to HKFRSs Annual Improvements to HKFRSs 2015-2017 Cycle

The new and amendments to standards have been applied in accordance with the
relevant transition provisions in the respective standards and amendments which results
in changes in accounting policies, amounts reported and/or disclosures. Except for
HKFRS 16, the adoption of other new and amendments to standards has no material
impact on the Group.

Interim Report 2019 ALCO HOLDINGS LIMITED 7