| ANNUAL REPORT 2015
104
NOTES TO THE FINANCIAL STATEMENTS
30 June 2015 (cont’d)
4. SIGNIFICANT ACCOUNTING POLICIES (cont’d)
4.2 Basis of consolidation (cont’d)
If the Group loses control of a subsidiary, the profit or loss on disposal is calculated as the difference between:
(a) the aggregate of the fair value of the consideration received and the fair value of any retained interest; and
(b) the previous carrying amount of the assets (including goodwill), and liabilities of the subsidiary and any non-
controlling interests.
Amounts previously recognised in other comprehensive income in relation to the subsidiary are accounted for (i.e.
reclassified to profit or loss or transferred directly to retained earnings) in the same manner as would be required if the
relevant assets or liabilities were disposed of. The fair value of any investments retained in the former subsidiary at the
date when control is lost is regarded as the fair value on initial recognition for subsequent accounting under MFRS 139
Financial Instruments: Recognition andMeasurement
or, where applicable, the cost on initial recognition of an investment
in associate or joint venture.
4.3 Business combinations
Business combinations are accounted for by applying the acquisition method of accounting.
Identifiable assets acquired, liabilities and contingent liabilities assumed in a business combination are measured at
their fair value at the acquisition date, except that:
(a) deferred tax assets or liabilities and liabilities or assets related to employee benefit arrangements are recognised
and measured in accordance with MFRS 112
Income Taxes
and MFRS 119
Employee Benefits
respectively;
(b) liabilities or equity instruments related to share-based payment transactions of the acquiree or the replacements
by the Group of an acquiree’s share-based payment transactions are measured in accordance with MFRS 2
Share-
based Payment
at the acquisition date; and
(c) assets (or disposal groups) that are classified as held for sale in accordance with MFRS 5
Non-current Assets Held for
Sale and Discontinued Operations
are measured in accordance with that Standard.
Acquisition-related costs are recognised as expenses in the periods in which the costs are incurred and the serviced are
received.
Any contingent consideration payable is recognised at fair value at the acquisition date. Measurement period
adjustments to contingent consideration are dealt with as follows:
(a) If the contingent consideration is classified as equity, it is not remeasured and settlement is accounted for within
equity.
(b) Subsequent changes to contingent consideration classified as an asset or liability that is a financial instrument
within the scope of MFRS 139 are recognised either in profit or loss or in other comprehensive income in accordance
with MFRS 139. All other subsequent changes are recognised in profit or loss.
In a business combination achieved in stages, previously held equity interests in the acquiree are re-measured to fair
value at the acquisition date and any corresponding gain or loss is recognised in profit or loss.
