Download PDF - ChartNexus

annual report | 2012 Gunung Capital Berhad (330171-P)
54
NOTES TO THE FINANCIAL STATEMENTS (cont’d)
31 DECEMBER 2012
2 SIGNIFICANT ACCOUNTING POLICIES (cont’d)
2.4 Summary of Significant Accounting Policies
(a) Basis of Consolidation
The consolidated financial statements incorporate the audited financial statements of the Company and its
subsidiaries made up to the same financial year. Subsidiaries are companies in which the Group has the power
to exercise control over the financial and operating policies so as to obtain benefits from their activities,
generally accompanying a shareholding of more than one half of the voting rights.
Subsidiaries are consolidated from the date on which control is transferred to the Group and are de-consolidated
from the date control ceases. The financial statements of subsidiaries are prepared for the same reporting
period as the Company, and uniform accounting policies are adopted in the financial statements for like
transactions and events in similar circumstances.
Acquisitions of subsidiaries are accounted for using the acquisition method. Identifiable assets acquired and
liabilities assumed in a business combination are measured initially at their fair values at the acquisition date.
Acquisition related costs are recognised as expenses in the periods in which the costs are incurred and the
services are received.
In business combinations achieved in stages, previously held equity interests in the acquiree are re-measured
to fair value at the acquisition date and any corresponding gain or loss is recognised in profit or loss.
The Group elects for each individual business combination, whether non-controlling interest in the acquiree
(if any) is recognised on the acquisition date at fair value, or at the non-controlling interest’s proportionate
share of the acquiree net identifiable assets.
Any excess of the sum of the fair value of the consideration transferred in the business combination, the
amount of non-controlling interest in the acquiree (if any), and the fair value of the Group’s previously held
equity interest in the acquiree (if any), over the net fair value of the acquiree’s identifiable assets and liabilities
is reflected as goodwill in the statement of financial position. The accounting policy for goodwill is set out
in Note 2.4(c). In instances where the latter amount exceeds the former, the excess is recognised as a gain on
bargain purchase in profit or loss on the acquisition date.
All intra-group transactions, balances and resulting unrealised gains are eliminated on consolidation and
the consolidated financial statements reflect external transactions only. Unrealised losses are eliminated on
consolidation unless cost cannot be recovered.
The gain or loss on disposal of a subsidiary is the difference between net disposal proceeds and the Group’s
share of its assets together with any unamortised balance of goodwill.
(b) Transactions with Non-Controlling Interests
Non-controlling interests represent the equity in subsidiaries not attributable, directly or indirectly, to owners
of the Company, and is presented separately in the consolidated statement of comprehensive income and
within equity in the consolidated statement of financial position, separately from equity attributable to
owners of the Company.
Changes in the Company owners’ ownership interest in a subsidiary that do not result in a loss of control
are accounted for as equity transactions. In such circumstances, the carrying amounts of the controlling and
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 interest is adjusted and the fair value of the
consideration paid or received is recognised directly in equity and attributed to owners of the parent.