WILLAS-ARRAY ELECTRONICS (HOLDINGS) LIMITED
74
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED MARCH 31, 2016
3.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The consolidated financial statements have been prepared in accordance with IFRSs issued by
the IASB. In addition, the financial statements include certain applicable disclosures required by
the Rules Governing the Listing of Securities on the SEHK and by the Hong Kong Companies
Ordinance.
The financial statements have been prepared on the historical cost basis except for certain
properties and financial instruments that are measured at revalued amounts or fair values at the
end of each reporting period, as explained in the accounting policies below.
Historical cost is generally based on the fair value of the consideration given in exchange for goods
and services.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date, regardless of whether
that price is directly observable or estimated using another valuation technique. In estimating the
fair value of an asset or a liability, the Group takes into account the characteristics of the asset
or liability if market participants would take those characteristics into account when pricing the
asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes
in these consolidated financial statements is determined on such as basis, except for share-
based payment transactions that are within the scope of IFRS 2
Share-based payment
, leasing
transaction that are within the scope of IAS 17
Leases
and measurements that have some
similarities to fair value but are not fair value, such as net realisable value in IAS 2
Inventories
or
value in use in IAS 36
Impairment of assets
.
In addition, for financial reporting purposes, fair value measurements are categorised into Level 1, 2
and 3 based on the degree to which the inputs to the fair value measurements are observable and
the significance of the inputs to the fair value measurement in its entirety, which are described as
follows:
• Level 1 inputs are quoted prices (unadjusted) in active market for identical assets or liabilities
that the entity can access at the measurement date;
• Level 2 inputs are inputs, other than quoted prices included within Level 1, that are
observable for the asset or liability, either directly or indirectly; and
• Level 3 inputs are unobservable inputs for the asset or liability.
The principal accounting policies are set out below.
