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STAMFORD LAND CORPORATION LTD
NOTES TO THE FINANCIAL STATEMENTS
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
Basis of Consolidation (Cont’d)
Subsidiaries
Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has
rights to, variable returns from its involvement with the entity and has the ability to affect those returns through
its power over the entity. 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 NCI in a subsidiary are allocated to the NCI even if doing so
causes the NCI to have a deficit balance.
Loss of control
Upon the loss of control, the Group derecognises the assets and liabilities of the subsidiary, any NCI 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 equity-accounted
investee or as an available-for-sale financial asset depending on the level of influence retained.
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 losses are eliminated
in the same way as unrealised gains, but only to the extent that there is no evidence of impairment.
Subsidiaries in the separate financial statements
Investments in subsidiaries are stated in the Company’s balance sheet at cost less accumulated impairment
losses.
Revenue
Revenue represents invoiced value of goods sold and services rendered, hotel and restaurant operations
revenue, rental income and income from the sale of completed residential properties. The Group’s revenue
excludes transactions within the Group. Revenue is measured at the fair value of the consideration received or
receivable, taking into account the amount of any trade discounts and volume rebates allowed by the Group.
