notes to the financial statements - Investor Relations

NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2011
2 BASIS OF PREPARATION (CONT’D)
2.4 Use of estimates and judgements (cont’d)
Annual Report 2011
The key assumptions concerning the future, and other key sources at reporting date, that have a significant risk of causing
a material adjustment to the carrying amounts of assets and liabilities in the next financial year are described in the following
notes:
• Note 4 – Impairment assessment, provision for restoration costs and depreciation of property, plant and equipment
• Note 5 – Measurement of recoverable amounts for goodwill impairment test
• Note 6 – Impairment allowances on investments in subsidiaries
• Note 12 – Measurement of deferred tax assets
• Note 15 – Measurement of allowance for foreseeable losses
• Note 16 – Measurement of allowance for trade receivables
• Note 32 – Measurement of provisions
• Note 38 – Assessment of income tax provision
• Note 40 – Valuation of assets, liabilities and contingent liabilities acquired in business combinations
• Note 42 – Valuation of financial instruments
2.5 Changes in Accounting Policies
Overview
In the current financial year, the Group has adopted all the new and revised FRSs and Interpretations of FRSs (“INT FRSs”)
that are relevant to its operations and effective for annual periods beginning on 1 January 2011. The adoption of these new
and revised FRSs and INT FRSs does not result in substantial changes to the Group’s accounting policies and has no material
effect on the amounts reported for the current or prior years.
Measurement of non-controlling interests in business combinations
From 1 January 2011, the Group applied the amendments to FRS 103 Business Combinations resulting from the Improvements
to FRSs 2010 in measuring at the acquisition date, non-controlling interests that are not present ownership interests and do
not entitle their holders to a proportionate share of the acquiree’s net assets in the event of liquidation. Such non-controlling
interests are now measured at fair value (see note 3.1).
Previously, the Group has elected on a transaction-by-transaction basis whether to measure non-controlling interests that are
not present ownership interests and do not entitle holders to proportionate share of the acquiree’s net assets on liquidation
at fair value, or at the non-controlling interests’ proportionate share of the recognised amounts of the acquiree’s identifiable
net assets, at the acquisition date.
This change in accounting policy has been applied prospectively to new business combinations occurring on or after 1
January 2010 and has no material impact on earnings per share.
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