Annual Report - QuamIR

Notes to the Consolidated Financial Statements (Continued)
2 Summary of significant accounting policies (Continued)
2.4 Foreign currency translation (Continued)
(c) Group companies (Continued)
On consolidation, exchange differences arising from the
translation of the net investment in foreign operations are
taken to other comprehensive income. When a foreign
operation is partially disposed of or sold, exchange
differences that were recorded in equity are recognised in
the income statement as part of the gain or loss on sale.
2
2.4
(c)
Goodwill and fair value adjustments arising on the
acquisition of a foreign entity are treated as assets and
liabilities of the foreign entity and translated at the closing
rate. Exchange differences are recognised in equity.
(d)
Disposal of foreign operation and partial disposal
(d)
On the disposal of a foreign operation (that is, a disposal
of the group’s entire interest in a foreign operation, or a
disposal involving loss of control over a subsidiary that
includes a foreign operation, a disposal involving loss of
joint control over a jointly controlled entity that includes a
foreign operation, or a disposal involving loss of significant
influence over an associate that includes a foreign
operation), all of the exchange differences accumulated in
equity in respect of that operation attributable to the equity
holders of the company are reclassified to profit or loss.
In the case of a partial disposal that does not result in
the Group losing control over a subsidiary that includes a
foreign operation, the proportionate share of accumulated
exchange differences are re-attributed to non-controlling
interests and are not recognised in profit or loss. For all
other partial disposals (that is, reductions in the Group’s
ownership interest in associates or jointly controlled entities
that do not result in the Group losing significant influence
or joint control) the proportionate share of the accumulated
exchange difference is reclassified to profit or loss.
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