NOTICE OF ANNUAL GENERAL MEETING
statisTICS OF SHAREHOLDINGs
FINANCIAL CONteNts
CORPORATE GOVERNANCE REPORT
61
Navigating Challenges • EMBRACING DIVERSITY | ANNUAL REPORT 2015
Notes to the financial statements
3 Significant accounting policies (Cont’d)
3.1 Basis of consolidation
(i)
Business combinations
Business combinations are accounted for using the acquisition method in accordance with FRS 103
Business Combination
as at the acquisition date, which is the date on which control is transferred to the
Group.
The Group measures goodwill at the date of acquisition as:
•
the fair value of the consideration transferred; plus
•
the recognised amount of any non-controlling interests (“NCI”) in the acquiree; plus
•
if the business combination is achieved in stages, the fair value of the pre-existing equity interest
in the acquiree,
over the net recognised amount (generally fair value) of the identifiable assets acquired and liabilities
assumed. Any goodwill that arises is tested annually for impairment.
When the excess is negative, a bargain purchase gain is recognised immediately in profit or loss.
The consideration transferred does not include amounts related to the settlement of pre-existing
relationships. Such amounts are generally recognised in profit or loss.
NCI that are present ownership interests and entitle their holders to a proportionate share of the
acquiree’s net assets in the event of liquidation are measured either at fair value or at the NCI’s
proportionate share of the recognised amounts of the acquiree’s identifiable net assets, at the date of
acquisition. The measurement basis taken is elected on a transaction-by-transaction basis. All other NCI
are measured at acquisition-date fair value, unless another measurement basis is required by FRSs.
Costs related to the acquisition, other than those associated with the issue of debt or equity securities,
that the Group incurs in connection with a business combination are expensed as incurred.
Changes in the Group’s interest in a subsidiary that do not result in a loss of control are accounted for as
transactions with owners in their capacity as owners and therefore no adjustments are made to goodwill
and no gain or loss is recognised in profit or loss. Adjustments to NCI arising from transactions that do
not involve the loss of control are based on a proportionate amount of the net assets of the subsidiary.
(ii)
Subsidiaries
Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to,
or has rights to, variable returns from its involvement with the entity and has the ability to affect those
returns through its power over the entity. The financial statements of subsidiaries are included in the
consolidated financial statements from the date that control commences until the date that control
ceases.
The accounting policies of subsidiaries have been changed when necessary to align them with the
policies adopted by the Group.
