ANNUAL REPORT 2015 |
103
NOTES TO THE FINANCIAL STATEMENTS
30 June 2015 (cont’d)
4. SIGNIFICANT ACCOUNTING POLICIES (cont’d)
4.2 Basis of consolidation
The consolidated financial statements incorporate the financial statements of the Company and all its subsidiaries.
Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee
and has the ability to affect those returns through its power over the investee. Specifically, the Group controls an
investee if and only if the Group has:
(a) Power over the investee;
(b) Exposure, or rights, to variable returns from its involvement with the investee; and
(c) The ability to use its power over the investee to affect its returns.
If the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts
and circumstances in assessing whether it has power over an investee, including:
(a) The contractual arrangement with the other vote holders of the investee;
(b) Rights arising from other contractual agreements; and
(c) The voting rights of the Group and potential voting rights.
Intragroup balances, transactions, income and expenses are eliminated on consolidation. Unrealised gains arising from
transactions with associates and joint ventures are eliminated against the investment to the extent of the interest of the
Group in the investee. Unrealised losses are eliminated in the same way as unrealised gains, but only to the extent that
there is no impairment.
The financial statements of the subsidiaries are prepared for the same reporting period as that of the Company, using
consistent accounting policies. Where necessary, accounting policies of subsidiaries are changed to ensure consistency
with the policies adopted by the other entities in the Group.
Non-controlling interests represent equity in subsidiaries that are not attributable, directly or indirectly, to owners of the
parent, and is presented separately in the consolidated statement of profit or loss and other comprehensive income and
within equity in the consolidated statement of financial position, separately from equity attributable to owners of the
Company. Profit or loss and each component of other comprehensive income are attributed to the owners of the parent
and to the non-controlling interests. Total comprehensive income is attributed to non-controlling interests even if this
results in the non-controlling interests having a deficit balance.
The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to
one or more of the three elements of control. Subsidiaries are consolidated from the date on which control is transferred
to the Group up to the effective date on which control ceases, as appropriate. Assets, liabilities, income and expenses of
a subsidiary acquired or disposed of during the financial year are included in the statement of profit or loss and other
comprehensive income from the date the Group gains control until the date the Group ceases to control the subsidiary.
Changes in the Company owners’ ownership interest in a subsidiary that do not result in a loss of control are accounted
for as equity transactions. In such circumstances, the carrying amounts of the controlling and non-controlling interests
are adjusted to reflect the changes in their relative interests in the subsidiary. Any difference between the amount by
which the non-controlling interest is adjusted and the fair value of consideration paid or received is recognised directly
in equity and attributed to owners of the parent.
