93
ANNUAL REPORT 2016
NOTES TOTHE FINANCIAL STATEMENTS
30 JUNE 2016
(Continued)
4.
SIGNIFICANT ACCOUNTING POLICIES (continued)
4.2 Basis of consolidation (continued)
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.
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 and Measurement
or,
where applicable, the cost on initial recognition of an investment in associate or joint venture.
