GHL Systems Berhad Annual Report 2015

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

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.