Financial Statements - Mewah Group
Financial Statements - Mewah Group
Financial Statements - Mewah Group
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Building Capabilities<br />
Notes to the <strong>Financial</strong> <strong>Statements</strong><br />
For the financial year ended 31 December 2011<br />
2. Significant accounting policies (continued)<br />
2.3 <strong>Group</strong> accounting (continued)<br />
(c)<br />
Associate (continued)<br />
(ii)<br />
Equity method of accounting<br />
In applying the equity method of accounting, the <strong>Group</strong>’s share of its associate post-acquisition profits or losses<br />
are recognised in profit or loss and its share of post-acquisition other comprehensive income is recognised<br />
in other comprehensive income. These post-acquisition movements and distributions received from the<br />
associate are adjusted against the carrying amount of the investments. When the <strong>Group</strong>’s share of losses<br />
in an associate equals or exceeds its interest in the associate, including any other unsecured non-current<br />
receivables, the <strong>Group</strong> does not recognise further losses, unless it has obligations or has made payments on<br />
behalf of the associate.<br />
Unrealised gains on transactions between the <strong>Group</strong> and its associate are eliminated to the extent of the<br />
<strong>Group</strong>’s interest in the associate. Unrealised losses are also eliminated unless the transaction provides evidence<br />
of an impairment of the asset transferred. The accounting policies of associate have been changed where<br />
necessary to ensure consistency with the accounting policies adopted by the <strong>Group</strong>.<br />
(iii)<br />
Disposals<br />
Gains and losses arising from partial disposals or dilutions in investments in associate in which significant<br />
influence is retained are recognised in profit or loss.<br />
Investments in associate are derecognised when the <strong>Group</strong> loses significant influence. Any retained equity<br />
interest in the entity is remeasured at its fair value. The difference between the carrying amount of the retained<br />
interest at the date when significant influence is lost and its fair value is recognised in profit or loss.<br />
Please refer to Note 2.6 for the accounting policy on investments in associate in the separate financial<br />
statements of the Company.<br />
2.4 Property, plant and equipment<br />
(a)<br />
Measurement<br />
(i)<br />
Property, plant and equipment<br />
All property, plant and equipment are initially recognised at cost and subsequently carried at cost less<br />
accumulated depreciation and accumulated impairment losses.<br />
When an asset is revalued, any accumulated depreciation at the date of revaluation is eliminated against the<br />
gross carrying amount of the asset. The net amount is then restated to the revalued amount of the asset.<br />
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