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Annual Report 2017
135
Notes to the
financial statements
31 march 2017
2.
Significant accounting policies (cont’d.)
2.3 Summary of significant accounting policies
(cont’d.)
(a)
Subsidiaries and basis of consolidation (cont’d.)
(ii)
Basis of consolidation
The consolidated financial statements comprise the financial statements of the Company and its subsidiary
companies as at the reporting date. The financial statements of the subsidiary companies used in the
preparation of the consolidated financial statements are prepared for the same reporting date as the Company.
Consistent accounting policies are applied for like transactions and events in similar circumstances.
The Company controls an investee if and if only the Company has the following:
(i)
Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities
of the investee);
(ii)
Exposure, or rights, to variable returns from its investment with the investee; and
(iii)
The ability to use its power over the investee to affect its returns.
When the Company has less than a majority of the voting rights of an investee, the Company considers the
following in assessing whether or not the Company’s voting rights in an investee are sufficient to give it
power over the investee:
(i)
The size of the Company’s holding of voting rights relative to the size and dispersion of holdings of the
other vote holders;
(ii)
Potential voting rights held by the Company, other vote holders or other parties;
(iii)
Rights arising from other contractual arrangements; and
(iv)
Any additional facts and circumstances that indicate that the Company has, or does not have, the
current ability to direct the relevant activities at the time that decisions need to be made, including
voting patterns at previous shareholders’ meetings.
Subsidiary companies are consolidated when the Company obtains control over the subsidiary company and
ceases when the Company loses control of the subsidiary company. All intra-group balances, income and expenses
and unrealised gains and losses resulting from intra-group transactions are eliminated in full.
Losses within a subsidiary company are attributed to the non-controlling interests even if that results in a deficit
balance.
Changes in the Group’s ownership interests in subsidiary companies that do not result in the Group losing control
over the subsidiaries are accounted for as equity transactions. The carrying amounts of the Group’s interests
and the non- controlling interests are adjusted to reflect the changes in their relative interests in the subsidiary
company. The resulting difference is recognised directly in equity and attributed to owners of the Company.