113 / 188
109
NOTES TO THE FINANCIAL STATEMENTS
F i m a C o r p o r at i o n B e r h a d ( 2 1 1 8 5 - P ) •
A n n u a l R e p o r t 2 0 1 8
2.
SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)
2.3 Summary of Significant Accounting Policies (Cont’d.)
(a) Basis of Consolidation (Cont’d.)
Business Combinations (Cont’d.)
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.