Page 117 - S P Setia Annual Report 2016
P. 117

S P Setia Berhad Group                                                                                115
          Annual Report 2016




                                                                               Notes To The Financial Statements

                                                                                  For The Financial Year Ended 31 December 2016

          1.   SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)
              (e)   Basis of consolidation (cont’d.)

                   The Group reassesses whether it controls an entity if facts and circumstances indicate that there are changes to one or more of
                   the three elements of control.

                   All intra-group balances, transactions, income and expenses are eliminated in full on consolidation and the consolidated financial
                   statements reflect external transactions only.
                   All subsidiary companies are consolidated on the acquisition method of accounting from the date of acquisition, being the date
                   on which the Group obtains control, and continue to be consolidated until the date that such control ceases except for Syarikat
                   Kemajuan Jerai Sdn Bhd and Wawasan Indera Sdn Bhd which are acquired under common control.

                   Business combinations under common control are accounted using the pooling of interests method, where the results of entities
                   or businesses under common control are accounted for as if the acquisition had occurred at the date that common control was
                   established. The assets and liabilities acquired are included in the consolidated statements of financial position at their existing
                   carrying amounts.

                   Under the acquisition method of accounting, the cost of an acquisition is measured as the aggregate of the fair values of the
                   assets acquired, liabilities incurred or assumed and equity instruments issued at the date of exchange. Identifiable assets acquired
                   and liabilities and contingent liabilities assumed are measured at their fair values at the acquisition date.

                   The consideration transferred for the acquisition of a subsidiary comprises the fair value of the assets transferred, the liabilities
                   incurred and the equity interests issued by the Group. The consideration transferred also includes the fair value of any contingent
                   consideration arrangement and the fair value of any pre-existing equity interest in the subsidiary.

                   Acquisition-related costs are expensed as incurred.

                   Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at
                   their fair values at the acquisition date.

                   On an acquisition-by-acquisition basis, the Group recognises any non-controlling interest in the acquiree at the date of acquisition
                   either at fair value or at the non-controlling interest’s proportionate share of the acquiree’s net identifiable assets.

                   If the business combination is achieved in stages, the acquisition date fair value of the acquirer’s previously held equity interest in
                   the acquiree is remeasured to fair value at the acquisition date through profit or loss.

                   The excess of the fair value of the consideration transferred, the amount of any non-controlling interest in the acquiree and the
                   acquisition date fair value of any previous equity interest in the acquiree over the fair value of the net identifiable assets acquired
                   is recorded as goodwill. Goodwill is stated at cost less accumulated impairment losses. Any excess of the Group’s share in the net
                   fair value of the acquired subsidiary’s identifiable assets, liabilities and contingent liabilities over the cost of business combination
                   is recognised as income in profit or loss on the date of acquisition.

                   Non-controlling interests are that part of the net results of operations and of net assets of a subsidiary attributable to the interests
                   which are not owned directly or indirectly by the shareholders of the Company. They are shown separately in the consolidated
                   statement of comprehensive income, statement of changes in equity and statement of financial position. Total comprehensive
                   income is attributed to the non-controlling interests based on their respective interests in a subsidiary, even if this results in the
                   non-controlling interests having a deficit balance.
                   When a change in the Company’s ownership interest in a subsidiary results in a loss of control over the subsidiary, the assets and
                   liabilities of the subsidiary including any goodwill are derecognised. Amounts recognised in other comprehensive income in respect
                   of that entity are also reclassified to profit or loss or transferred directly to retained earnings if required by a specific standard.

                   Any retained interest in the entity is remeasured at fair value. The difference between the carrying amount of the retained
                   investment at the date when control is lost and its fair value is recognised in profit or loss.

                   Changes in the Company’s ownership interest in a subsidiary that do not result in a loss of control over the subsidiary are
                   accounted for as transactions with equity owners of the Group. Any difference between the change in the carrying amounts
                   of the non-controlling interest and the fair value of the consideration paid or received is recognised in retained earnings within
                   equity attributable to the shareholders of the Company.
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