2. Significant accounting policies (CONT’D.)
2.5 Summary of significant accounting policies (cont’d.)
(a) Basis of consolidation (cont’d.)
Business combinations
Acquisitions of Subsidiaries are accounted for using the acquisition method of accounting. Under the
acquisition method, the identifiable assets acquired and liabilities assumed are measured at their fair
values at the acquisition date.
Acquisition costs incurred are expensed and included in administrative expenses. The difference
between these fair values and the fair value of the consideration (including the fair value of any pre-
existing investment in the acquiree) is goodwill or a discount on acquisition. The accounting policy for
goodwill is set out in Note 2.5(r). Discount on acquisition which represents negative goodwill is
recognised immediately as income in profit or loss.
In business combinations achieved in stages, previously held equity interest in the acquiree is re-
measured to fair value at the acquisition date and any corresponding gain or loss is recognised in
profit or loss.
Non-controlling interest
For each business combination, the Group elects whether to measure the non-controlling interest in
the acquiree at the acquisition date either at fair value or at the proportionate share of the acquiree’s
identifiable net assets.
Non-controlling interests represent the equity in Subsidiaries not attributable, directly or indirectly, to
the owners of the Company, and are presented separately in the consolidated statement of
comprehensive income andwithin equity in the consolidated statement of financial position, separately
from shareholders’ equity. Losses of a Subsidiary are attributed to the non-controlling interest even if
that results in a deficit balance.
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