Page 68 - ar2011_hi

66 // HUTCHISON PORT HOLDINGS TRUST
Notes to the Accounts
1 General information
Hutchison Port Holdings Trust (“Trust” or “HPH Trust”) is a business trust constituted by a deed of trust dated
25 February 2011 (the “Trust Deed”) and registered with the Monetary Authority of Singapore. HPH Trust is
principally regulated by the Business Trusts Act, Chapter 31A of Singapore and Securities and Futures Act,
Chapter 289 of Singapore. Under the Trust Deed, Hutchison Port Holdings Management Pte. Limited
(the “Trustee-Manager”), has declared that it will hold all its assets (including businesses) acquired on trust
for the unitholders as the Trustee-Manager of HPH Trust. The registered address of the Trustee-Manager is
at 50 Raffes Place, #32-01 Singapore Land Tower, Singapore 048623. HPH Trust was listed on the Main Board
of Singapore Exchange Securities Trading Limited (the “SGX-ST”) on 18 March 2011.
HPH Trust is established with the principal investment mandate of investing in, developing, operating and
managing deep-water container ports in the Guangdong Province of the People’s Republic of China (“PRC”),
Hong Kong and Macau. HPH Trust may also invest in other types of port assets including river ports, which are
complementary to the deep-water container ports owned by HPH Trust, as well as undertake certain port
ancillary services including, but not limited to, trucking, feedering, freight-forwarding, supply chain management,
warehousing and distribution services.
On 28 February 2011, the Trust entered into a sale and purchase agreement with Hutchison Port Holdings
Limited (“HPH”) to acquire the deep-water container ports in Shenzhen and Hong Kong, certain port ancillary
services and economic benefts in certain river ports. The consideration for the acquisitions and the loan
assignments was HK$88,564,558,000. The acquisitions were completed on 15 March 2011.
2 Significant accounting policies
The accounts have been prepared in accordance with Hong Kong Financial Reporting Standard (“HKFRS”) issued
by the Hong Kong Institute of Certifed Public Accountants (“HKICPA”). The accounts have been prepared under
the historical cost convention except for investments which are stated at fair value, as explained in the signifcant
accounting policies set out below.
There is no material difference in preparing the accounts using HKFRS and International Financial Reporting
Standards (“IFRS”). No material adjustments are required to restate the accounts prepared under HKFRS to
comply with IFRS.
The preparation of accounts in conformity with HKFRS requires management to exercise its judgement in the
process of applying the accounting policies of HPH Trust and its subsidiaries (collectively “the Group”). It also
requires the use of certain critical accounting estimates and assumptions. The areas involving a higher degree
of judgement or complexity, or areas where assumptions and estimates are signifcant to the accounts,
are disclosed in Note 3.
(a) Basis of consolidation
The consolidated accounts of the Group for the period from 25 February (date of constitution of the Trust) to
31 December 2011, which include all its direct and indirect subsidiary companies and also incorporate the
interest in associated companies and jointly controlled entities on the basis set out in Notes 2(c) and 2(d) below.
Results of subsidiary companies, associated companies and jointly controlled entities acquired or disposed of
during the period are included as from their effective dates of acquisition to 31 December 2011 or up to the dates
of disposal as the case may be. The acquisition of subsidiary companies is accounted for using the acquisition
method.