NOTES TO THE FINANCIAL STATEMENTS
For The Financial Period From 1 January 2014 To 31 March 2015 (Cont’d)
63
Datasonic Group Berhad
(Company No. 809759-X)
3.
BASIS OF PREPARATION (CONT’D)
3.2 BASIS OF CONSOLIDATION (CONT’D)
(b) Acquisition Method Of Accounting For Non-common Control Business Combinations
Acquisitions of businesses are accounted for using the acquisition method. Under the
acquisition method, the consideration transferred for acquisition of a subsidiary is the fair
value of the assets transferred, liabilities incurred and the equity interests issued by the
Group at the acquisition date. The consideration transferred includes the fair value of any
asset or liability resulting froma contingent consideration arrangement. Acquisition-related
costs, other than the costs to issue debt or equity securities, are recognised in profit or loss
when incurred.
In a business combination achieved in stages, previously held equity interests in the acquire
are remeasured to fair value at the acquisition date and any corresponding gain or loss
is recognised in profit or loss.
Non-controlling interests in the acquiree may be initially measured either at fair value or
at the non-controlling interests’ proportionate share of the fair value of the acquiree’s
identifiable net assets at the date of acquisition. The choice of measurement basis is made
on a transaction-by transaction basis.
(c) Non-controlling interests
Non-controlling interests are presented within equity in the consolidated statement of
financial position, separately from the equity attributable to owners of the Company.
Profit or loss and each component of other comprehensive income are attributed to the
owners of the Company and to the non-controlling interests. Total comprehensive income
is attributed to non-controlling interests even if this results in the non-controlling interests
having a deficit balance.
At the end of each financial year, the carrying amount of non-controlling interests is the
amount of those interests at initial recognition plus the non-controlling interests’ share of
subsequent changes in equity.
(d) Changes In Ownership Interests In Subsidiaries Without Change of Control
All changes in the parent’s ownership interest in a subsidiary that do not result in a loss of
control are accounted for as equity transactions. Any difference between the amount
by which the non-controlling interest is adjusted and the fair value of consideration paid
or received is recognised directly in equity of the Group.
(e) Loss of Control
Upon the loss of control of a subsidiary, the Group recognises any gain or loss on disposal
in profit or loss which is calculated as the difference between:-
(i) the aggregate of the fair value of the consideration received and the fair value of
any retained interest in the former subsidiary; and
(ii) the previous carrying amount of the assets (including goodwill), and liabilities of the
former subsidiary and any non-controlling interests.
Amounts previously recognised in other comprehensive income in relation to the former
subsidiary are accounted for in the same manner as would be required if the relevant
assets or liabilities were disposed of (i.e. reclassified to profit or loss or transferred directly to
retained profits). The fair value of any investments retained in the former subsidiary at the
date when control is lost is regarded as the fair value on initial recognition for subsequent
accounting under MFRS 139 or, when applicable, the cost on initial recognition of an
investment in an associate or a jointly venture.
