Annual Report - QuamIR

Notes to the Consolidated Financial Statements (Continued)
2 Summary of significant accounting policies (Continued)
2.2 Consolidation (Continued)
(c)
Associated companies (Continued)
The Group’s share of its associated companies’
post-acquisition profits or losses is recognised in the
consolidated income statement, and its share of postacquisition
movements in other comprehensive income
is recognised in other comprehensive income. The
cumulative post-acquisition movements are adjusted
against the carrying amount of the investment. When
the Group’s share of losses in an associated company
equals or exceeds its interest in the associated company,
including any other unsecured receivables, the Group does
not recognise further losses, unless it has incurred legal or
constructive obligations or made payments on behalf of
the associated company.
Unrealised gains on transactions between the Group and
its associated companies are eliminated to the extent of the
Group’s interest in the associated companies. Unrealised
losses are also eliminated unless the transaction provides
evidence of an impairment of the asset transferred.
Accounting policies of associated companies have been
changed where necessary to ensure consistency with the
policies adopted by the Group.
Dilution gains and losses arising in investments in
associated companies are recognised in consolidated
income statement.
In the Company’s balance sheet the investments in
associated companies are stated at cost less provision for
impairment losses. The results of associated companies
are accounted for by the Company on the basis of
dividend received and receivable.
Gains and losses on disposals are determined by
comparing the proceeds with the carrying amount and
are recognised within other income or other and general
expenses in the consolidated income statement.
2
2.2
(c)
(d)
Jointly controlled entities
A jointly controlled entity is a contractual arrangement
whereby the Group and other parties undertake an
economic activity which is subject to joint control and none
of the participating parties has unilateral control over the
economic activity.
(d)
86 HKC (Holdings) Limited • Annual Report 2011