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NOTES TO THE
FINANCIAL STATEMENTS
3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(a) Basis of consolidation (Continued)
(i) Business combinations (Continued)
Costs related to the acquisition, other than those associated with the issue of debt or
equity securities, that the Group incurs in connection with a business combination are
expensed as incurred.
Any contingent consideration payable is recognised at fair value at the acquisition
date. If the contingent consideration is classified as equity, it is not remeasured and
settlement is accounted for within equity. Otherwise, subsequent changes to the fair
value of the contingent consideration are recognised in profit or loss.
When unit-based payment awards (replacement awards) are required to be exchanged
for awards held by the acquiree’s employees (acquiree’s awards) and relate to past
services, then all or a portion of the amount of the acquirer’s replacement awards is
included in measuring the consideration transferred in the business combination. This
determination is based on the market-based value of the replacement awards compared
with the market-based value of the acquiree’s awards and the extent to which the
replacement awards relate to past and/or future service.
Non-controlling interests that are present ownership interests and entitle their holders
to a proportionate share of the acquiree’s net assets in the event of liquidation are
measured either 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. All other non-controlling interests are measured at acquisition-date fair value or,
when applicable, on the basis specified in another standard.
Cost related to the acquisition, other than those associated with the issue of debt or
equity securities, that the Group incurs in connection with a business combination are
expensed as incurred.
(ii) Acquisition of non-controlling interests
Acquisitions of non-controlling interests are accounted for as transaction with owners in
their capacity as owners and therefore no goodwill is recognised as a result. Adjustments
to the non-controlling interests arising from transactions that do not involve the loss of
control are based on proportional amount of the net assets of the subsidiary.
(iii) Subsidiaries
Subsidiaries are entities controlled by the Group. The financial statements of subsidiaries
are included in the consolidated financial statements from the date that control
commences until the date that control ceases.
The accounting policies of subsidiaries have been changed when necessary to align
them with the policies adopted by the Group. Losses applicable to the non-controlling
interests in a subsidiary are allocated to the non-controlling interests even if doing so
causes the non-controlling interests to have a deficit balance.
Investments in subsidiaries are stated in the Trust’s statement of financial position at
cost less accumulated impairment losses.