Founded in 1987, Huawei is a leading global provider of information and communications

particulars of the Company’s major subsidiaries are 
set out in note 32(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, 2020 
in accordance with International Financial Reporting 
Standards (IFRSs).
The consolidated financial statements summary has 
been prepared and presented based on the audited 
consolidated financial statements for the year ended 
December 31, 2020 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)).

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Huawei Investment & Holding Co., Ltd.
(iv) Loss of control
When the Group loses control of a subsidiary, 
it is accounted for as a disposal of the entire 
interest in that subsidiary, with a resulting 
gain or loss being recognised in profit or loss. 
Any interest retained in that former subsidiary 
at the date when control is lost is recognised 
at fair value or, when appropriate, the cost 
on initial recognition of an investment in an 
associate or a joint venture (see note 3(d)).
(d) Associates and joint ventures
An associate is an entity in which the Group 
has significant influence, but not control or 
joint control, over its management, including