SCI Annual Report 2015

SCI Electric Public Company Limited
SCI ELECTRIC PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES
(FORMERLY KNOW AS “SCI ELECTRIC MANUFACTURER COMPANY LIMITED”)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE TEAR ENDED 31 DECEMBER 2015
TFRS
TFRIC 15 (revised 2015)
TFRIC 17 (revised 2015)
TFRIC 18 (revised 2015)
TFRIC 20 (revised 2015)
TFRIC 21
Topic
Agreements for the Construction of Real Estate
Distributions of Non – cash Assets to Owners
Transfers of Assets from Customers
Stripping Costs in the Production Phase of a Surface Mine
Levies
3.3 Investment in subsidiaries
Subsidiaries are all entities (including special purpose entities) over which the Group has the power to govern the
financial and operating policies generally accompanying a shareholding of more than one-half of the voting rights.
The existence and effect of potential voting rights that are currently exercisable or convertible are considered when
assessing whether the Group controls another entity. Subsidiaries are fully consolidated from the date on which con
trol is transferred to the Group. They are de-consolidated from the date that control ceases.
The Group uses the acquisition method of accounting to account for business combinations. The consideration
transferred for the acquisition of a subsidiary is the fair value of the assets transferred, the liabilities incurred and the
equity interests issued by the Group. The consideration transferred includes the fair value of any asset or liability
resulting from a contingent consideration arrangement. Acquisition-related costs are expensed as incurred.
Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured
initially at their fair values at the acquisition date. On an acquisition-by-acquisition basis, the Group recognises any
non-controlling interest in the acquiree either at fair value or at the non-controlling interest’s proportionate share of
the acquiree’s net assets.
The excess of the consideration transferred; the amount of any non-controlling interest in the acquiree and
the acquisition-date fair value of any previous equity interest in the acquiree over the fair value of the Group’s share
of the identifiable net assets acquired are recorded as goodwill. If this is less than the fair value of the net assets
of the subsidiary acquired in the case of a bargain purchase, the difference is recognised directly in profit or loss.
Intercompany transactions, balances and unrealised gains or loss on transactions between Group companies
are eliminated. Unrealised losses are also eliminated. Accounting policies of subsidiaries have been changed
where necessary to ensure consistency with the policies adopted by the Group.
Investments in subsidiaries are accounted for at cost less impairment. Cost is adjusted to reflect changes
inconsideration arising from contingent consideration amendments. Cost also includes direct attributable costs of
investment.
A list of the subsidiaries is set out in Note 7.
3.4 Foreign currency translation
The Company translates the foreign currency transactions to Thai Baht using the exchange rates prevailing at the
date of the transaction. Monetary assets and liabilities denominated in foreign currency are translated to Thai Baht
at the exchange rate prevailing at the statement of financial position date. Gains and losses resulting from the
settlement of foreign currency transactions and from the translations of monetary assets and liabilities denominated
in foreign currencies are recognized in profit or loss.
198