103 / 174
financiAL STATEMENTs
Annual Report 2017
101
NOTES TO THE FINANCIAL STATEMENTS
2.
SIGNIFICANT ACCOUNTING POLICIES (Cont’d.)
2.3 Summary of Significant Accounting Policies
(a) Basis of Consolidation
The consolidated financial statements comprise the financial statements of the Company and its subsidiary
companies as at the reporting date. The financial statements of the subsidiary companies used in the preparation
of the consolidated financial statements are prepared for the same reporting date as the Company. Consistent
accounting policies are applied for like transactions and events in similar circumstances.
The Company controls an investee if and if only the Company 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 affects its returns.
When the Company has less than a majority of the voting rights of an investee, the Company considers the following
in assessing whether or not the Company’s voting rights in an investee are sufficient to give it power over the investee:
(i)
The size of the Company’s holding of voting rights relative to the size and dispersion of holdings of the other
vote holders;
(ii)
Potential voting rights held by the Company, other vote holders or other parties;
(iii)
Rights arising from other contractual arrangements; and
(iv)
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.
Subsidiary companies are consolidated when the Company obtains control over the subsidiary company and ceases
when the Company loses control of the subsidiary company. All intra-group balances, income and expenses and
unrealised gains and losses resulting from intra-group transactions are eliminated in full.
Losses within a subsidiary company are attributed to the non-controlling interests even if that results in a deficit balance.
Changes in the Group’s ownership interests in subsidiary companies that do not result in the Group losing control
over the subsidiaries 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 company. The
resulting difference is recognised directly in equity and attributed to owners of the Company.
When the Group loses control of a subsidiary company, a gain or loss 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 and liabilities of the subsidiary company and any non- controlling interest, is
recognised in profit or loss. The subsidiary company’s cumulative gain or loss which has been recognised in other
comprehensive income and accumulated in equity are reclassified to profit or loss or where applicable, transferred
directly to retained earnings. The fair value of any investment retained in the former subsidiary company at the date
control is lost is regarded as the cost on initial recognition of the investment.