ANNUAL REPORT 2015
49
Notes to the Combined
Financial Statements
As at 30 September 2015
2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont’d)
All intra-group transactions, balances, income and expenses are eliminated in full on consolidation.
Non-controlling interests in subsidiaries are identified separately from the Group’s equity therein. The interest of non-controlling
shareholders may be initially measured (at date of original business combination) either at fair value or at the non-controlling interests’
proportionate share of the fair value of the acquiree’s identifiable net assets. The choice of measurement basis is made on an
acquisition-by-acquisition basis. Subsequent to acquisition, the carrying amount of non-controlling interests is the amount of those
interests at initial recognition plus the non-controlling interests’ share of subsequent changes in equity. Total comprehensive income is
attributed to non-controlling interests even if this may result in the non-controlling interests having a deficit balance.
Changes in the Group’s interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions. The
carrying amounts of the Group’s interests and the non-controlling interests are adjusted to reflect the changes in their relative interests
in the subsidiary. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the
consideration paid or received is recognised directly in equity and attributed to owners of the Company.
When the Group losses control of a subsidiary, the profit or loss on disposal is calculated as the difference between (i) the aggregate
of the fair value of the consideration received and the fair value of any retained interest and (ii) the previous carrying amount of the
assets (including goodwill), and liabilities of the subsidiary and any non-controlling interests. Amounts previously recognised in other
comprehensive income in relation to the subsidiary are accounted for (i.e. reclassified to profit or loss or transferred directly to retained
earnings) in the same manner as would be required if the relevant assets or liabilities were disposed of. The fair value of any investment
retained in the former subsidiary at the date when control is lost is regarded as the fair value on initial recognition for subsequent
accounting under FRS 39
Financial Instruments: Recognition and Measurement
or, when applicable, the cost on initial recognition of an
investment in an associate or jointly controlled entity.
The Group accounts for the fellow co-operative venturers’ interests in the co-operative venture businesses as fellow co-operative
venturers’ interests which are identified separately from the Group’s equity therein.
The co-operative ventures’ interest may be initially measured either at fair value or at the fellow co-operative ventures’ proportionate
share of the fair value of the co-operative ventures’ identifiable net assets. The carrying amount of co-operative ventures’ is the amount
of those interests at initial recognition plus the co-operative ventures’ share of subsequent changes in equity. Total comprehensive
income is attributed to co-operative ventures’ interests even if this may result in the co-operative ventures’ interests having a deficit
balance.
Increases in interests in co-operatives venture businesses are accounted for as equity transactions. The carrying amount of the Group’s
interests and the fellow co-operatives venturer’s interests are adjusted to reflect the changes in their relative interests in the co-operative
venture businesses. Any difference between the amount by which the fellow co-operative venturer’s interests are adjusted and the fair
value of the consideration paid or received is recognised directly in equity.
BUSINESS COMBINATIONS - Acquisitions of subsidiaries and businesses are accounted for using the acquisition method. The
consideration for each acquisition is measured at the aggregate of the acquisition date fair values of assets given, liabilities incurred
by the Group to the former owners of the acquiree, and equity interests issued by the Group in exchange for control of the acquiree.
Acquisition-related costs are recognised in profit or loss as incurred.
Where applicable, the consideration for the acquisition includes any asset or liability resulting from a contingent consideration
arrangement, measured at its acquisition date fair value. Subsequent changes in such fair values are adjusted against the cost of
acquisition where they qualify as measurement period adjustments. The subsequent accounting for changes in the fair value of the
contingent consideration that do not qualify as measurement period adjustments depends on how the contingent consideration is
classified. Contingent consideration that is classified as equity is not remeasured at subsequent reporting dates and its subsequent
settlement is accounted for within equity. Contingent consideration that is classified as an asset or a liability is remeasured at subsequent
reporting dates in accordance with FRS 39
Financial Instruments: Recognition and Measurement
, or FRS 37
Provisions, Contingent
Liabilities and Contingent Assets
, as appropriate, with the corresponding gain or loss being recognised in profit or loss.
Where a business combination is achieved in stages, the Group’s previously held interests in the acquired entity are remeasured to
fair value at the acquisition date (i.e. the date the Group attains control) and the resulting gain or loss, if any, is recognised in profit
or loss. Amounts arising from interests in the acquiree prior to the acquisition date that have previously been recognised in other
comprehensive income are reclassified to profit or loss, where such treatment would be appropriate if that interest were disposed of.
The acquiree’s identifiable assets, liabilities and contingent liabilities that meet the conditions for recognition under the FRS are
recognised at their fair value at the acquisition date, except that:
deferred tax assets or liabilities and liabilities or assets related to employee benefit arrangements are recognised and measured
in accordance with FRS 12
Income Taxes
and FRS 19
Employee Benefits
respectively;
