48
JUMBO GROUP LIMITED
Notes to the Combined
Financial Statements
As at 30 September 2015
2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont’d)
Amendments to FRS 1
Presentation of Financial Statements: Disclosure Initiative
The amendments have been made to the following:
Materiality and aggregation - An entity shall not obscure useful information by aggregating or disaggregating information and
materiality considerations apply to the primary statements, notes and any specific disclosure requirements in FRSs.
Statement of financial position and statement of profit or loss and other comprehensive income - The list of line items to be
presented in these statements can be aggregated or disaggregated as relevant. Guidance on subtotals in these statements has
also been included.
Presentation of items of other comprehensive income (“OCI”) arising from equity-accounted investments - An entity’s share of
OCI of equity-accounted associates and joint ventures should be presented in aggregate as single items based on whether or not
it will subsequently be reclassified to profit or loss.
Notes - Entities have flexibility when designing the structure of the notes and guidance is introduced on how to determine
a systematic order of the notes. In addition, unhelpful guidance and examples with regard to the identification of significant
accounting policies are removed.
Management is currently evaluating the potential impact of the application of these amendments to FRS 1 on the financial statements of
the Group and of the Company in the period of initial adoption.
BASIS OF COMBINATION - The Group resulting from the Restructuring Exercise as disclosed in Note 1, is one involving entities under
common control. Accordingly, the combined financial statements have been accounted for using the principles of merger accounting
where financial statement items of the merged entities for the reporting periods in which the common control combination occurs are
included in the combined financial statement of the Group as if the combination had occurred from the date when the merged entities
first came under the control of the same shareholders.
Control is achieved when the Company:
Has power over the investee;
Is exposed, or has rights, to variable returns from its involvement with the investee; and
Has the ability to use its power to affect its returns.
The Company reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or
more of the three elements of control listed above.
When the Company has less than a majority of the voting rights of an investee, it has power over the investee when the voting rights are
sufficient to give it the practical ability to direct the relevant activities of the investee unilaterally. The Company considers all relevant facts
and circumstances in assessing whether or not the Company’s voting rights in an investee are sufficient to give it power, including:
The size of the Company’s holding of voting rights relative to the size and dispersion of holdings of the other vote holders;
Potential voting rights held by the Company, other vote holders or other parties;
Rights arising from other contractual arrangements; and
Any additional facts and circumstances that indicate that the Company has, or does not have, the current ability to direct the
relevant activities at the time that decisions need to be made, including voting patterns at previous shareholders’ meetings.
The results of subsidiaries acquired or disposed of during the financial year are included in the combined statement of profit or loss and
other comprehensive income from the effective date of acquisition or up to the effective date of disposal, as appropriate.
Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies in line with those
used by other members of the Group.
