Annual report 2014
69
NOTES TO THE FINANCIAL STATEMENTS
31 December 2014 (continued)
4. SIGNIFICANT ACCOUNTING POLICIES (continued)
4.2 Basis of consolidation (continued)
If the Group loses control of a subsidiary, the profit or loss on disposal is calculated as the difference
between:
(a) The aggregate of the fair value of the consideration received and the fair value of any retained
interest; and
(b) The previous carrying amount of the assets (including goodwill), and liabilities of the subsidiary
and any non-controlling interests.
Amounts previously recognised in other comprehensive income in relation to the subsidiary are
accounted for (i.e. reclassified to profit or loss or transferred directly to retained earnings) in the same
manner as would be required if the relevant assets or liabilities were disposed of. 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
Financial Instruments:
Recognition and Measurement
or, where applicable, the cost on initial recognition of an investment
in associate or joint venture.
4.3 Business combinations
Business combinations are accounted for by applying the acquisition method of accounting.
Identifiable assets acquired, liabilities and contingent liabilities assumed in a business combination are
measured at their fair value at the acquisition date, except that:
(a) Deferred tax assets or liabilities and liabilities or assets related to employee benefit arrangements
are recognised and measured in accordance with MFRS 112
Income Taxes
and MFRS 119
Employee Benefits
respectively;
(b) Liabilities or equity instruments related to share-based payment transactions of the acquiree
or the replacement by the Group of an acquiree’s share-based payment transactions are
measured in accordance with MFRS 2
Share-based Payment
at the acquisition date; and
(c) Assets (or disposal groups) that are classified as held for sale in accordance with MFRS 5
Non-
current Assets Held for Sale and Discontinued Operations
are measured in accordance with that
Standard.
Acquisition-related costs are recognised as expenses in the periods in which the costs are incurred
and the services are received.
Any contingent considerationpayable is recognisedat fair valueat theacquisitiondate. Measurement
period adjustments to contingent consideration are dealt with as follows:
(a) If the contingent consideration is classified as equity, it is not remeasured and settlement is
accounted for within equity.
(b) Subsequent changes to contingent consideration classified as an asset or liability that is a
financial instrument within the scope of MFRS 139 are recognised either in profit or loss or in
other comprehensive income in accordance with MFRS 139. All other subsequent changes are
recognised in profit or loss.
