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The Differences Between IFRS and PRC GAAP (2005 2006)

Significant differences between the financial statements prepared under International Financial Reporting Standards ("IFRSs") and those prepared in accordance with the Accounting Standards for Business Enterprises, the Accounting System for Financial Institutions (2001 version) and other relevant regulations including Caikui (2005) No.14 "Provisional Guidelines on Recognition and Measurement of Financial Instruments" ("MOF (14)") issued by the Ministry of Finance of the PRC (the "MOF"), People's Bank of China (the "PBOC") and the China Banking Regulatory Commission ("CBRC") (hereinafter collectively referred to as "PRC GAAP")

A reconciliation of differences between the financial statements prepared under PRC GAAP and those prepared in accordance with IFRSs is set out below.

Notes

2006

2005

Profit for the year attributable to equity holders of the Bank under PRC GAAP

 

48,719

37,405

Reversal of amortization of goodwill

(i)

100

150

Recognition of revaluation surplus on disposed assets

(ii)

444

-

Profit for the year attributable to equity holders of the Bank under IFRSs

49,263

37,555

Equity attributable to equity holders of the Bank under PRC GAAP

466,896

256,947

Reversal of amortization of goodwill

(i)

371

271

Reversal of revaluation surplus

(ii)

(803)

(1,379)

Equity attributable to equity holders of the Bank under IFRSs

 

466,464

255,839

Notes:
(i)Reversal of amortization of goodwill
In accordance with the relevant provisions under IFRSs, goodwill is assessed for impairment annually and not amortized.Accordingly, the amortization of goodwill under PRC GAAP is reversed in the financial statements prepared in accordance with IFRSs.

(ii)Reversal of revaluation surplus and recognition of revaluation surplus on disposed assets
In the financial statements prepared under PRC GAAP, the Group performed the revaluation on certain assets (including equity investments, repossessed assets and intangible assets, etc.) pursuant to the relevant requirements, with the revaluation surplus recognized in the capital reserve.Under IFRSs, such assets are carried at cost and the revaluation surplus was reversed accordingly.In relation to the disposal of such assets, adjustments on reversal of recognition of valuation surplus were made accordingly.In respect of the available-for-sale equity investments among these assets, when they meet specific conditions to be measured at the fair value under IFRS, the adjustments of reversal of valuation surplus were made to the investment revaluation reserve accordingly.


(2007-12-28)