133 / 148
(Expressed in Hong Kong dollars unless otherwise indicated)
NOTES TO THE FINANCIAL STATEMENTS
OF HK ELECTRIC INVESTMENTS MANAGER LIMITED
1. General information
HK Electric Investments Manager Limited (the “Company”) was incorporated in Hong Kong under the Hong Kong
Companies Ordinance on 25 September 2013 and is an indirect wholly-owned subsidiary of Power Assets, which is
incorporated in Hong Kong with its shares listed on The Stock Exchange of Hong Kong Limited and traded in the form of
American Depositary Receipts on the OTC Markets Group Inc. in the United States. The address of the registered office
and the principal place of business of the Company is Hongkong Electric Centre, 44 Kennedy Road, Hong Kong.
The principal activity of the Company is administering HK Electric Investments (the “Trust”), in its capacity as trustee-
manager of the Trust. The Trust was constituted as a trust on 1 January 2014 by a Hong Kong law governed Trust Deed
entered into between the Company, as the trustee-manager of the Trust, and HK Electric Investments Limited.
The costs and expenses of administering the Trust may be deducted from all property and rights of any kind whatsoever
which are held on trust for the registered holders of units of the Trust but, commensurate with its specific and limited
role, the Company will not receive any fee for administering the Trust.
2. Significant accounting policies
(a) Statement of compliance
These financial statements have been prepared in accordance with all applicable Hong Kong Financial Reporting
Standards (“HKFRSs”), which is a collective term that includes all applicable individual Hong Kong Financial
Reporting Standards, Hong Kong Accounting Standards (“HKASs”) and Interpretations issued by the Hong Kong
Institute of Certified Public Accountants (“HKICPA”), accounting principles generally accepted in Hong Kong
and the requirements of the Hong Kong Companies Ordinance. These financial statements also comply with the
applicable disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong
Kong Limited. A summary of the significant accounting policies adopted by the Company is set out below.
The HKICPA has issued certain new and revised HKFRSs that are first effective or available for early adoption for
the current accounting period of the Company. Note 3 provides information on any changes in accounting policies
resulting from initial application of these developments to the extent that they are relevant to the Company for the
current and prior accounting periods reflected in these financial statements.
(b) Basis of preparation and presentation of the financial statements
The measurement basis used in the preparation of the financial statements is the historical cost basis.
The preparation of financial statements in conformity with HKFRSs requires management to make judgements,
estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income
and expenses. The estimates and associated assumptions are based on historical experience and various other
factors that are believed to be reasonable under the circumstances, the results of which form the basis of making
the judgements about carrying values of assets and liabilities that are not readily apparent from other sources.
Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of
the revision and future periods if the revision affects both current and future periods.
2016 ANNUAL REPORT
133