09:38     PANVA GAS HOLD<08132> - Quarterly Results Announcement (3)          

    In accordance with the provisions of HKFRS 3:                             
    i. the Group ceased amorisation of goodwill from 1 January 2003;          
    ii. accumulated amortisation as at 31 December 2002 has been eliminated   
    with a corresponding decrease in the cost of goodwill;                    
    iii. from the year ended 31 December 2003 onwards, goodwill is tested     
    annually for impairment, as well as when there are                        
    indications of impairment.                                                
                                                                              
    The adoption of HKAS 32 and HKAS 39 has resulted in a change              
    in accounting policy for recognition, measurement, derecognition          
    and disclosure of financial instruments.  Until 31 December 2004,         
    investments of the Group were classified into non-trading securities      
    and trading securities, and were stated in the balance sheet at fair      
    value.  Bank deposits with embedded derivatives for yield enhancement     
    were treated as bank deposits and stated at cost.                         
                                                                              
    In accordance with the provisions of HKAS 39, the investments have        
    been classified into available-for-sale financial assets, financial       
    assets at fair value through profit or loss and loans and receivables     
    (which include bank deposits and cash and cash equivalents).  The         
    classification depends on the purpose for which the investments were      
    held.  For debt securities and bank deposits with embedded derivatives    
    for yield enhancement, where the economic characteristics and the         
    risks of such derivatives are not closely related to the bank             
    deposits and debt securities, all such bank deposits, debt securities     
    and the embedded derivatives are designated as financial assets at        
    fair value through profit or loss and with changes in fair value          
    recognized in the profit and loss account.  Interest income for           
    financial assets at fair value through profit or loss is included         
    as net realized and unrealized gains/(losses) and interest income         
    of financial assets at fair value through profit or loss.                 
                                                                              
    All relevant changes in the accounting policies have been made            
    in accordance with the provisions of the respective standards, which      
    require retrospective application to prior year                           
    comparatives other than:                                                  
    i. HKFRS 2 - retrospective application of all equity instruments          
    granted to employees after 7 November 2002 and not                        
    vested at 1 January 2004;                                                 
    ii. HKFRS 3 - prospectively after 1 January 2003;                         
    iii. HKAS 39 - prospectively from 1 January 2005.