Page 81 - SAR141018_Forterra AR 2013

FORTERRA
ANNUAL REPORT 2013
NOTES TO THE
FINANCIAL STATEMENTS
79
3 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(a) Basis of consolidation (Continued)
(i) Business combinations (Continued)
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. The measurement basis taken is elected on a transaction-by-transaction basis.
All other non-controlling interests are measured at acquisition-date fair value, unless
another measurement basis required by FRSs.
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.
Changes in the Group’s interest in a subsidiary that do not result in a loss of control
are accounted for as transactions with owners in their capacity as owners and
therefore no adjustments are made to goodwill and no gain or loss is recognised in
profit or loss. Adjustments to non-controlling interests arising from transactions that
do not involve the loss of control are based on a proportionate amount of the net
assets of the subsidiary.
(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.