ive been reviewing the financial reports[2013 and 2014] of the main jv partner formed as smart win sino oil and gas hong kong and noticed in their "contingencies "section they have been accruing in an account money for a potential liability from a lawsuit/s. iam sure all large companies prepare for the worst possible scenario with a litigation going on such as smart win with eegc in the new york state supreme court but while no financial figure given nonetheless found it interesting.of course the legal issue has been settled.imo
(v) Contingencies
Periodically, the Group assesses potential liabilities related
to any lawsuits or claims brought against the Group or
any asserted claims. Although it is typically very difficult
to determine the timing and ultimate outcome of such
actions, the Group uses its best judgement to determine
if it is probable that it will incur an expense related to the
settlement or final adjudication of such matters and whether
a reasonable estimation of such probable loss, if any,
can be made. In accordance with HKAS 37, Provisions,
Contingent Liabilities and Contingent Assets, the Group
accrues a liability when it believes a loss is probable and
the amount of loss can be reasonably estimated. Due to
the inherent uncertainties related to the eventual outcome
of litigation, although the Group believes that the estimates
and judgement are reasonable, it is possible that certain
matters may be resolved for amounts materially different
from any estimated provisions or previous disclosures
stated in 2014 sino oil and gas hk annual report
look at the stated smart win loss amounts for 2014 and 2013 for the sino oil and gas 50% share
20. INTEREST IN A JOINT VENTURE
The Group
2014 2013
HK$’ 000 HK$’ 000
千港元 千港元
As at 1 January 於1月1日 1,215 4,947
Share of loss for the year 年內分佔虧損 (628) (232)
Dividend received 已收股息 – (3,500)
As at 31 December 於12月31日 587 1,215
The Group has a 50% (2013: 50%) interest in a joint
venture, Smart Win International Limited, a separate
structured vehicle incorporated in the British Virgin Island
(“BVI”) and operating in Hong Kong. The primary activity of
Smart Win International Limited is investment holding.
The contractual arrangement provides the Group with only
the rights to the net assets of the joint arrangement, with
the rights to the assets and obligation for the liabilities
of the joint arrangement resting primarily with Smart
Win International Limited. Under HKFRS 11 this joint
arrangement is classified as a joint venture and has been
included in the consolidated financial statements using
the equity method. In the opinion of the directors of the
Company, this joint venture is not material to the Group,
and the summarised financial information in relation to the
joint venture is presented below:
2014 2013
HK$’ 000 HK$’ 000
千港元 千港元
Loss for the year 年內虧損 (1,256) (464)
Other comprehensive income 其他全面收益 – –
Total comprehensive income 總全面收益 (1,256) (464)
20. 於一家合營企業之權益
本集團
本集團於合營企業凱智國際有限公司擁
有50%（2013年：50%）權益，後者為於
英屬維爾京群島註冊成立並與香港經營
業務之獨立結構實體。凱智國際有限公
司之主要業務為投資控股。
合約安排僅向本集團提供對合營安排資
產淨值之權利，而對合營安排資產之權
利及負債之義務主要歸於凱智國際有限
公司。根據香港財務報告準則第11號，
該合營安排分類為合營企業並使用權益
法於綜合財務報表入賬。本公司董事認
為，該合營企業對本集團影響不大，而
有關合營企業之財務資料概要呈列如下：
(v) Contingencies
Periodically, the Group assesses potential liabilities related
to any lawsuits or claims brought against the Group or
any asserted claims. Although it is typically very difficult
to determine the timing and ultimate outcome of such
actions, the Group uses its best judgement to determine
if it is probable that it will incur an expense related to the
settlement or final adjudication of such matters and whether
a reasonable estimation of such probable loss, if any,
can be made. In accordance with HKAS 37, Provisions,
Contingent Liabilities and Contingent Assets, the Group
accrues a liability when it believes a loss is probable and
the amount of loss can be reasonably estimated. Due to
the inherent uncertainties related to the eventual outcome
of litigation, although the Group believes that the estimates
and judgement are reasonable, it is possible that certain
matters may be resolved for amounts materially different
from any estimated provisions or previous disclosures
stated in 2014 sino oil and gas hk annual report
look at the stated smart win loss amounts for 2014 and 2013 for the sino oil and gas 50% share
20. INTEREST IN A JOINT VENTURE
The Group
2014 2013
HK$’ 000 HK$’ 000
千港元 千港元
As at 1 January 於1月1日 1,215 4,947
Share of loss for the year 年內分佔虧損 (628) (232)
Dividend received 已收股息 – (3,500)
As at 31 December 於12月31日 587 1,215
The Group has a 50% (2013: 50%) interest in a joint
venture, Smart Win International Limited, a separate
structured vehicle incorporated in the British Virgin Island
(“BVI”) and operating in Hong Kong. The primary activity of
Smart Win International Limited is investment holding.
The contractual arrangement provides the Group with only
the rights to the net assets of the joint arrangement, with
the rights to the assets and obligation for the liabilities
of the joint arrangement resting primarily with Smart
Win International Limited. Under HKFRS 11 this joint
arrangement is classified as a joint venture and has been
included in the consolidated financial statements using
the equity method. In the opinion of the directors of the
Company, this joint venture is not material to the Group,
and the summarised financial information in relation to the
joint venture is presented below:
2014 2013
HK$’ 000 HK$’ 000
千港元 千港元
Loss for the year 年內虧損 (1,256) (464)
Other comprehensive income 其他全面收益 – –
Total comprehensive income 總全面收益 (1,256) (464)
20. 於一家合營企業之權益
本集團
本集團於合營企業凱智國際有限公司擁
有50%（2013年：50%）權益，後者為於
英屬維爾京群島註冊成立並與香港經營
業務之獨立結構實體。凱智國際有限公
司之主要業務為投資控股。
合約安排僅向本集團提供對合營安排資
產淨值之權利，而對合營安排資產之權
利及負債之義務主要歸於凱智國際有限
公司。根據香港財務報告準則第11號，
該合營安排分類為合營企業並使用權益
法於綜合財務報表入賬。本公司董事認
為，該合營企業對本集團影響不大，而
有關合營企業之財務資料概要呈列如下：
