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Notes to the
Financial Statements
As at 31 March 2019
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 (cont’d.)
Business combinations (cont’d.)
Goodwill is initially measured at cost, being the excess of the aggregate of the consideration
transferred and the amount recognised for non-controlling interests over the net identifiable
assets acquired and liabilities assumed. If this consideration is lower than fair value of the net
assets of the subsidiary company acquired, the difference is recognised in profit or loss. The
accounting policy for goodwill is set out in Note 2.3(e).
(b) Transaction with non-controlling interests
Non-controlling interests at the reporting date, being the portion of the net assets of subsidiary
companies attributable to equity interests that are not owned by the Company, whether directly or
indirectly through subsidiary companies, are presented in the consolidated statement of financial
position and statement of changes in equity within equity, separately from equity attributable to
the equity shareholders of the Company. Non-controlling interests in the results of the Group are
presented in the consolidated statement of comprehensive income as an allocation of the profit or
loss and the comprehensive income for the year between the non-controlling interests and the equity
shareholders of the Company.
Losses applicable to the non-controlling interest in a subsidiary company are allocated to the
non-controlling interests even if doing so causes the non-controlling interests to have a deficit
balance.
The Group treats all changes in its ownership interest in a subsidiary company that do not result in a
loss of control as equity transactions between the Group and its non-controlling interest holders. Any
difference between the Group’s share of net assets before and after the change, and any consideration
received or paid, is adjusted to or against Group reserves.
(c) Investment in associate companies
An associate is an entity, not being a subsidiary or a joint venture, in which the Group has significant
influence. An associate is equity accounted for from the date the Group obtains significant influence
until the date the Group ceases to have significant influence over the associate.
financial
statements
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