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Notes to the Financial Statements
3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(a) Basis of consolidation (Continued)
(iii) Loss of control
Upon the loss of control, the Group derecognises the assets and liabilities of the subsidiary, any non-
controlling interests and the other components of equity related to the subsidiary.
Any surplus or deficit arising on the loss of control is recognised in profit or loss. If the Group retains any
interest in the previous subsidiary, then such interest is measured at fair value at the date that control
is lost. Subsequently, it is accounted for as an equity-accounted investee or as an available-for-sale
financial asset depending on the level of influence retained.
(iv) Transactions eliminated on consolidation
Intra-group balances and transactions, and any unrealised income and expenses arising from intra-group
transactions, are eliminated in preparing the consolidated financial statements. Unrealised gains arising
from transactions with associates and joint ventures are eliminated against the investment to the extent
of the Group’s interest in the investee. Unrealised losses are eliminated in the same way as unrealised
gains, but only to the extent that there is no evidence of impairment.
(v) Accounting for subsidiaries
Investments in subsidiaries are stated in the Trust’s Statement of Financial Position at cost less
accumulated impairment losses.
(b) Foreign currency
(i) Foreign currency transactions
Transactions in foreign currencies are translated to the respective functional currencies of Group entities
at exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign
currencies at the end of the reporting period are translated to the functional currency at the exchange
rate at that date. The foreign exchange differences are recognised in profit or loss.
Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are
translated to the functional currency at the exchange rate at the date that the fair value was determined.
Non-monetary items in a foreign currency that are measured at cost are translated using the exchange
rate at the date of the transaction. Foreign exchange differences arising on translation are recognised in
profit or loss, except for differences arising on the translation of available-for-sale equity instruments or
qualifying cash flow hedges, which are recognised in other comprehensive income.
SAR1112034_TCT_AR_().indb 70 3/23/2012