105 / 174
financiAL STATEMENTs
Annual Report 2017
103
NOTES TO THE FINANCIAL STATEMENTS
2.
SIGNIFICANT ACCOUNTING POLICIES (Cont’d.)
2.3 Summary of Significant Accounting Policies (Cont’d.)
(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.
(d) Investment in Associate Companies
An associate is an entity, not being a subsidiary or a joint venture, in which the Group has significant influence. An
associate is equity accounted for from the date the Group obtains significant influence until the date the Group
ceases to have significant influence over the associate.
The Group’s investment in associate are accounted for using the equity method. Under the equity method, the
investment in associate is measured in the statement of financial position at cost plus post-acquisition changes in
the Group’s share of net assets of the associate. Goodwill relating to associate is included in the carrying amount of
the investment. Any excess of the Group’s share of the net fair value of the associate’s identifiable assets, liabilities
and contingent liabilities over the cost of the investment is excluded from the carrying amount of the investment and
is instead included as income in the determination of the Group’s share of the associate’s profit or loss for the period
in which the investment is acquired.
When the Group’s share of losses in an associate equals or exceeds its interest in the associate, the Group does not
recognise further losses, unless it has incurred obligations or made payments on behalf of the associate.
After application of the equity method, the Group determines whether it is necessary to recognise an additional
impairment loss on the Group’s investment in its associates. The Group determines at each reporting date whether
there is any objective evidence that the investment in the associate is impaired. If this is the case, the Group calculates
the amount of impairment as the difference between the recoverable amount of the associate and its carrying value
and recognises the amount in profit or loss.
The financial statements of the associate are prepared as of the same reporting date as the Company. Where
necessary, adjustments are made to bring the accounting policies in line with those of the Group.
In the Company’s separate financial statements, investments in associate are stated 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.