![Show Menu](styles/mobile-menu.png)
![Page Background](./../common/page-substrates/page0071.jpg)
69
GHL Systems Berhad
(293040-D)
Annual report 2015
Notes to the Financial Statements
31 December 2015 (continued)
4. SIGNIFICANT ACCOUNTING POLICIES (continued)
4.2 Basis of consolidation (continued)
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. In such circumstances, the carrying amounts of the controlling
and non-controlling interests are adjusted to reflect the changes in their relative interests in the
subsidiary. 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 and attributed to owners
of the parent.
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.