Page:Mass Transit Railway Ordinance (Cap. 556).pdf/32

43. Accounts

(1) For the purpose of any accounts prepared by the Corporation for the purposes of the Companies Ordinance (Cap. 32)—

(a) the Corporation shall be treated, on and from the appointed day, as if it were the continuation of MTRC;

(b) the value of any asset and the amount of any liability of MTRC vested in the Corporation by virtue of this Part is taken to be the value assigned to that asset or the amount assigned to that liability in the audited accounts of MTRC for the last complete financial year of MTRC; and

(c) the amount to be included in respect of any item is determined as if anything done by MTRC (whether by way of acquiring, revaluing or disposing of any asset or incurring, revaluing or discharging any liability, or by carrying any amount to any provision or reserve, or otherwise) had been done by the Corporation.

(2) Accordingly (and without affecting the generality of subsection (1))—

(a) the amount to be included from time to time in any reserves of the Corporation as representing the Corporation’s accumulated realised profits is determined as if the profits realised and retained by MTRC had been realised and retained by the Corporation;

(b) every other reserve or provision of MTRC becomes a reserve or provision of the Corporation; and

(c) the amount, description and character of every reserve or provision of the Corporation which becomes a reserve or provision of the Corporation pursuant to paragraph (b) is the same in all respects as those of the corresponding reserve or provision of MTRC immediately before the appointed day.

(3) Without affecting the generality of subsection (1), on and from the appointed day all profits or losses of MTRC earned or incurred after the beginning of the financial year of MTRC in which the appointed day occurs are treated as profits or losses of the Corporation.

(4) For the purposes of the accounts of the Corporation prepared for the purposes of the Companies Ordinance (Cap. 32), the vesting in the Corporation effected by virtue of this Part is taken—

(a) to have been effected immediately after the end of the last complete financial year of MTRC; and

(b) to have been a vesting of all the property, rights and liabilities to which MTRC was entitled or subject immediately before the end of the last complete financial year of MTRC.