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FIMA CORPORATION BERHAD
(21185-P) |
Annual Report
2016
NOTES TO THE FINANCIAL
STATEMENTS 31 MARCH 2016
(contd.)
2.
SIGNIFICANT ACCOUNTING POLICIES (CONTD.)
2.3 Summary of Significant Accounting Policies (Contd.)
(a) Basis of Consolidation (Contd.)
Business Combinations (Contd.)
If the business combination is achieved in stages, the acquisition date of the acquirer’s previously
held equity interest in the acquiree is remeasured to fair value at the acquisition date through profit
or loss.
Goodwill is initially measured at cost, being the excess of the aggregate of the consideration
transferred and the amount recognised for non-controlling interests over the net identifiable assets
acquired and liabilities assumed. If this consideration is lower than fair value of the net assets of
the subsidiary company acquired, the difference is recognised in profit or loss. The accounting
policy for goodwill is set out in Note 2.3(h).
(b) Subsidiaries
A subsidiary company is an entity over which the Group has the following:
(i) Power over the investee (i.e. existing rights that give it the current ability to direct the relevant
activities of the investee);
(ii) Exposure, or rights, to variable returns from its investment with the investee; and
(iii) The ability to use its power over the investee to affect its returns.
In the Company’s separate financial statements, investments in subsidiary companies are
accounted for at cost less impairment losses. On disposal of such investments, the difference
between net disposal proceeds and their carrying amounts is included in profit or loss.
(c) Transaction with Non-Controlling Interest
Non-controlling interests at the reporting date, being the portion of the net assets of subsidiary
companies attributable to equity interests that are not owned by the Company, whether directly or
indirectly through subsidiary companies, are presented in the consolidated statement of financial
position and statement of changes in equity within equity, separately from equity attributable to
the equity shareholders of the Company. Non-controlling interests in the results of the Group are
presented in the consolidated statement of profit or loss and other comprehensive income as
an allocation of the profit or loss and the comprehensive income for the year between the non-
controlling interests and the equity shareholders of the Company.
Losses applicable to the non-controlling interest in subsidiary companies are allocated to the
non-controlling interests even if doing so causes the non-controlling interests to have a deficit
balance.
The Group treats all changes in its ownership interest in subsidiary companies that do not result in
a loss of control as equity transactions between the Group and its non-controlling interest holders.
Any difference between the Group’s share of net assets before and after the change, and any
consideration received or paid, is adjusted to or against Group reserves.