3.
SIGNIFICANT ACCOUNTING POLICIES (CONT'D)
3.1
Basis of Consolidation (cont’d)
(ii)
Business combination
Business combinations are accounted for using the acquisition method from the acquisition date
which is the date on which control is transferred to the Group.
For new acquisitions, the Group measures the cost of goodwill at the acquisition date as:
•
the fair value of the consideration transferred, plus
•
the recognised amount of any non-controlling interest in the acquiree, plus
•
if the business combination is achieved in stages, the fair value of the existing equity interest
in the acquiree, less
•
the net recognised amount at fair value of the identifiable assets acquired and liabilities
assumed
When the excess is negative, a bargain purchase gain is recognised in profit or loss.
For each business combination, the Group elects whether to recognise non-controlling interest in
the acquiree at fair value, or at the proportionate share of the acquiree’s identifiable net assets
at the acquisition date.
Transaction costs, other than those associated with the issue of debt or equity securities, that the
Group incurs in connection with a business combination are expensed as incurred.
(iii)
Acquisitions of non-controlling interests
The Group treats all changes in its ownership interest in a subsidiary that do not result in a loss
of control as equity transactions between the Group and its non-controlling interest holders.
Any difference between the Group’s share of net assets before and after the change, and any
consideration received or paid, is adjusted to or against Group reserve.
(iv)
Loss of control
Upon the loss of control of a subsidiary, the Group derecognises the assets and liabilities of
the subsidiary, any non-controlling interests and the other components of equity related to the
subsidiary. Any surplus or deficit arising on the loss of control is recognised in profit or loss. If the
Group retains any interest in the previous subsidiary, then such interest is measured at fair value
at the date that control is lost. Subsequently it is accounted for as an equity accounted investee or
as an available-for-sale financial asset depending on the level of influence retained.
(v)
Non-controlling interests
Non-controlling interests at the end of the reporting period, being the equity in a subsidiary
not attributable directly or indirectly to the equity holders of the Company, are presented in the
consolidated statement of financial position and statement of changes in equity within equity,
separately from equity attributable to the owners of the Company. Non-controlling interests in
the results of the Group is presented in the consolidated statement of comprehensive income
as an allocation of the profit or loss and the comprehensive income for the year between non-
controlling interests and the owners of the Company.
Losses applicable to the non-controlling interests in a subsidiary are allocated to the non-
controlling interests even if doing so causes the non-controlling interests to have a deficit balance.
NOTES TO THE FINANCIAL STATEMENTS
31 DECEMBER 2014 (CONT’D)
•
Pentamaster Corporation Berhad
(572307-U)
Annual Report 2014
49
