2019 Annual Report (^95)
Notes
1 Reporting entity
Huawei Investment & Holding Co., Ltd. (the Company)
is a limited liability company established in Shenzhen
in the People’s Republic of China (the PRC). The
Company’s registered office is at Building 1, Zone B,
Huawei Base, Bantian Longgang District, Shenzhen
City, PRC.
The Company and its subsidiaries (the Group)
principally provide end to end Information and
Communication Technology solutions. This includes
the research, design, manufacture and marketing
of telecom network equipment, IT products and
solutions, cloud technology and services and
smart devices for telecom carriers, enterprises
and consumers. The principal activities and other
particulars of the Company’s major subsidiaries are
set out in note 33(b) to the consolidated financial
statements summary.
2 Preparation basis of the
consolidated financial statements
summary
The Group has prepared a full set of consolidated
financial statements (consolidated financial
statements) for the year ended December 31, 2019
in accordance with International Financial Reporting
Standards (IFRSs).
This is the first set of the Group’s annual financial
statements in which IFRS 16 Leases has been applied.
The related changes to significant accounting policies
are described in note 4.
The consolidated financial statements summary has
been prepared and presented based on the audited
consolidated financial statements for the year ended
December 31, 2019 in order to disclose material
financial and operational information.
3 Significant accounting policies
(a) Basis of preparation of the
consolidated financial statements
The consolidated financial statements have
been prepared under the historical cost basis
modified for the fair valuation of certain
financial instrument classifications (see note
3(e)).The preparation of consolidated financial
statements in accordance with IFRSs requires
management to make judgements, estimates
and assumptions that affect the application
of policies and reported amounts of assets,
liabilities, income and expenses. Estimates
and associated assumptions are based on
historical experience and various other factors
that are believed to be reasonable under the
circumstances. Actual results may differ from
these estimates.Estimates and underlying assumptions
are reviewed regularly and revised when
required. 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.Judgements made by management in the
application of IFRSs that have significant effect
on the consolidated financial statements and
major sources of estimation uncertainty are
discussed in note 5.(b) Functional and presentation currency
All financial information in the consolidated
financial statements summary is presented in
millions of Chinese Yuan (CNY), which is the
Company’s functional currency.(c) Consolidation
The consolidated financial statements
consolidate the results, assets, liabilities and
cash flows of all subsidiaries which the Group
controls.Subsidiaries are consolidated from the date
that control commences until the date
that control passes. Intra-group balances,
transactions and cash flows and any unrealised
profits arising from intra-group transactions
are eliminated in full in preparing the
consolidated financial statements. Unrealised
losses resulting from intra-group transactions
are eliminated in the same way as unrealised
gains but only to the extent that there is no
evidence of impairment.