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Food Empire Holdings Limited Annual Report 2013
75
2. Summary of significant accounting policies (cont’d)
2.4
Basis of consolidation and business combination (cont’d)
(a) Basis of consolidation (cont’d)
Basis of consolidation from 1 January 2010 (cont’d)
A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction. If the Group
loses control over a subsidiary, it:
•
De-recognises the assets (including goodwill) and liabilities of the subsidiary at their carrying amounts at the date when controls
is lost;
•
De-recognises the carrying amount of any non-controlling interest;
•
De-recognises the cumulative translation differences recorded in equity;
•
Recognises the fair value of the consideration received;
•
Recognises the fair value of any investment retained;
•
Recognises any surplus or deficit in profit or loss;
•
Re-classifies the Group’s share of components previously recognised in other comprehensive income to profit or loss or retained
earnings, as appropriate.
Basis of consolidation prior to 1 January 2010
Certain of the above-mentioned requirements were applied on a prospective basis. The following differences, however, are carried
forward in certain instances from the previous basis of consolidation:
•
Acquisition of non-controlling interests, prior to 1 January 2010, were accounted for using the parent entity extension method,
whereby, the difference between the consideration and the book value of the share of the net assets acquired were recognised
in goodwill.
•
Losses incurred by the Group were attributed to the non-controlling interest until the balance was reduced to nil. Any further
losses were attributed to the Group, unless the non-controlling interest had a binding obligation to cover these. Losses prior to
1 January 2010 were not reallocated between non-controlling interest and the owners of the Company.
•
Upon loss of control, the Group accounted for the investment retained at its proportionate share of net asset value at the date
control was lost. The carrying value of such investments as at 1 January 2010 have not been restated.
notes to the financial statements
For the year ended 31 December 2013