2. Significant accounting policies
(continued)
(a) Basis of consolidation
(continued)
(v) Associates
(continued)
When the Group’s share of losses exceeds its interest in an associate, the carrying amount
of that interest including any long-term investments is reduced to zero, and the recognition
of further losses is discontinued except to the extent that the Group has an obligation to
make or has made, payments on behalf of the associate.
When the Group ceases to have significant influence over an associate, any retained
interest in the former associate at the date when significant influence is lost is measured at
fair value and this amount is regarded as the initial carrying amount of a financial asset.
The difference between the fair value of any retained interest plus proceeds from the
interest disposed of and the carrying amount of the investment at the date when equity
method is discontinued is recognised in the profit or loss.
When the Group’s interest in an associate decreases but does not result in a loss of
significant influence, any retained interest is not re-measured. Any gain or loss arising from
the decrease in interest is recognised in profit or loss. Any gains or losses previously
recognised in other comprehensive income are also reclassified proportionately to the profit
or loss if that gain or loss would be required to be reclassified to profit or loss on the
disposal of the related assets or liabilities.
Investments in associates are measured in the Company’s statement of financial position at
cost less any impairment losses, unless the investments are classified as held for sale
or distribution. The cost of investment includes transaction costs.
(vi) 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 profit or loss and other comprehensive income as an allocation of the profit
or loss and the comprehensive income for the year between non-controlling interests
and 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.
(vii) Transactions eliminated on consolidation
Intra-group balances and transactions, and any unrealised income and expenses arising
from intra-group transactions, are eliminated in preparing the consolidated financial
statements.
Unrealised gains arising from transactions with associates are eliminated against the
investment to the extent of the Group’s interest in the associates. Unrealised losses are
eliminated in the same way as unrealised gains, but only to the extent that there is no
evidence of impairment.
Notes to the Financial Statements
SARAWAK PLANTATION BERHAD
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Annual Report 2014
