Sun Art Retail Group Limited - TodayIR.com

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(d)
Subsidiaries and non-controlling interests (continued)
Non-controlling interests are presented in the consolidated statement of financial position
within equity, separately from equity attributable to the equity shareholders of the Company.
Non-controlling interests in the results of the Group are presented on the face of the
consolidated statement of comprehensive income as an allocation of the total profit or loss
and total comprehensive income for the year between non-controlling interests and the equity
shareholders of the Company.
Changes in the Group’s interests in a subsidiary that do not result in a loss of control are
accounted for as equity transactions, whereby adjustments are made to the amounts of
controlling and non-controlling interests within consolidated equity to reflect the change in
relative interests, but no adjustments are made to goodwill and no gain or loss is recognised.
When the Group loses control of a subsidiary, it is accounted for as a disposal of the entire
interest in that subsidiary, with a resulting gain or loss being recognised in profit or loss.
Any interest retained in that former subsidiary at the date when control is lost is recognised
at fair value and this amount is regarded as the fair value on initial recognition of a financial
asset or, when appropriate, the cost on initial recognition of an investment in an associate
or jointly controlled entity.
In the Company’s statement of financial position, an investment in a subsidiary is stated at
cost less impairment losses (see note 1(l)), unless the investment is classified as held for
sale (or included in a disposal group that is classified as held for sale).
(e)
Jointly controlled entities
A jointly controlled entity is an entity which operates under a contractual arrangement
between the Group and other parties, where the contractual arrangement establishes that
the Group and one or more of the other parties share joint control over the economic activity
of the entity.
The results and assets and liabilities of jointly controlled entities are accounted for in the
consolidated financial statements using the proportionate consolidation method. The Group’s
share of the income, expenses, assets and liabilities of jointly controlled entities, other than
transactions and balances between the Group and jointly controlled entities, are combined
with the Group’s similar items in the consolidated financial statements on a line-by-line
basis. Transactions and balances between the Group and the jointly controlled entities are
eliminated to the extent of the Group’s interest in the jointly controlled entities.
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Sun Art Retail Group Limited
Annual Report 2012