2. Significant accounting policies (CONT’D.)
2.5 Summary of significant accounting policies
(a) Basis of consolidation
The consolidated financial statements of the Group comprise the Company and its Subsidiaries.
The financial statements of the Subsidiaries are prepared for the same reporting period as the
Company, using consistent accounting policies. In preparing the consolidated financial statements.
The Group controls an investee if and only if the Group has all the following:
(i) Power over the investee (i.e. existing rights that give it the current ability to direct the relevant
activities of the investee);
(ii) Exposure, or rights, to variable returns from its investment with the investee; and
(iii) The ability to use its power over the investee to affect its returns.
When the Group has less than a majority of the voting rights of an investee, the Group considers the
following in assessing whether or not the Group’s voting rights in an investee are sufficient to give it
power over the investee:
(i) The size of the Group’s holding of voting rights relative to the size and dispersion of holdings of
the other vote holders;
(ii) Potential voting rights held by the Group, other vote holders or other parties;
(iii) Rights arising from other contractual arrangements; and
(iv) Any additional facts and circumstances that indicate that the Group has, or does not have, the
current ability to direct the relevant activities at the time that decisions need to be made, including
voting patterns at previous shareholders’ meetings.
Subsidiaries are consolidated when the Group obtains control over the Subsidiary and ceases when
the Group loses control of the Subsidiary. All intra-group balances, income and expenses and
unrealised gains and losses resulting from intra-group transactions are eliminated in full.
n otes to th e f i nan c i a l statements
Bo ustead plantati o ns Berhad
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