2. Significant accounting policies
(continued)
(a) Basis of consolidation
(continued)
(ii) Accounting for business combinations
(continued)
Acquisitions between 1 January 2006 and 1 January 2011
For acquisitions between 1 January 2006 and 1 January 2011, goodwill represents the
excess of the cost of the acquisition over the Group’s interest in the recognised amount
(generally fair value) of the identifiable assets, liabilities and contingent liabilities of the
acquiree. When the excess was negative, a bargain purchase gain was recognised
immediately in profit or loss.
Transaction costs, other than those associated with the issue of debt or equity securities,
that the Group incurred in connection with business combinations were capitalised as part
of the cost of the acquisition.
Acquisitions prior to 1 January 2006
For acquisitions prior to 1 January 2006, goodwill represents the excess of the cost of
the acquisition over the Group’s interest in the fair values of the net identifiable assets
and liabilities.
(iii) Acquisitions of non-controlling interests
The Group accounts for all changes in its ownership interest 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 reserves.
(iv) Loss of control
Upon the loss of control of a subsidiary, the Group derecognises the assets and liabilities
of the former subsidiary, any non-controlling interests and the other components of equity
related to the former 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 former 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) Associates
Associates are entities, including unincorporated entities, in which the Group has significant
influence, but not control, over their financial and operating policies thereof.
Investment in associates are accounted for in the consolidated financial statements using
the equity method less any impairment losses, unless it is classified as held for sale
(or included in a disposal group that is classified as held for sale or distribution). The cost of
the investment includes transaction costs. The consolidated financial statements include
the Group’s share of the profit or loss and other comprehensive income of the equity
accounted associates, after adjustments, if any, to align the accounting policies with those
of the Group, from the date that significant influence commences until the date that
significant influence ceases.
Notes to the Financial Statements
SARAWAK PLANTATION BERHAD
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Annual Report 2014
