65
ANNUAL REPORT 2015/2016
Notes to Financial Statements
2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
(ii)
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
BOE UIF PUIFS DPNQPOFOUT PG FRVJUZ SFMBUFE UP UIF TVCTJEJBSZ "OZ TVSQMVT PS EFGJDJU BSJTJOH PO UIF MPTT
of control is recognised in profit or loss. If the Group retains any interest in the previous subsidiary,
UIFO TVDI JOUFSFTU JT NFBTVSFE BU GBJS WBMVF BU UIF EBUF UIBU DPOUSPM JT MPTU 4VCTFRVFOUMZ JU JT BDDPVOUFE
GPS BT FRVJUZ BDDPVOUFE JOWFTUFF PS BT BO BWBJMBCMF GPS TBMF GJOBODJBM BTTFU EFQFOEJOH PO UIF MFWFM PG
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.
