ACCOUNTING POLICIES (C) ASSOCIATES (CONT’D.) Where the financial year end of the associate is not coterminous with that of the Group, the share of results is arrived at using the last audited financial statements available and management financial statements to the end of the accounting period. Where necessary, adjustments are made to the financial statements of the associate to ensure consistency of the accounting policies used with those of the Group. The most recent available financial statements of the associate are used by the Group in applying the equity method. The Group determines at each reporting date whether there is any objective evidence that the investment in associate is impaired. If this is the case, the Group calculates the amount of impairment as the difference between the recoverable amount of the associate and its carrying value. Impairment loss is recognised in profit or loss. An associate is equity accounted for from the date the Group obtains significant influence until the date the Group ceases to have significant influence. Upon loss of significant influence over the associate, the Group measures and recognises any retained investment at its fair value. Any difference between the carrying amount of the associate upon loss of significant influence and the fair value of the retained investment and proceeds from disposal is recognised in profit or loss. Investment in associate – separate financial statements In the Company’s separate financial statements, investment in associate is stated at cost less any impairment losses. On disposal of such investment, the difference between net disposal proceeds and the carrying amount is included in profit or loss. (D) INVESTMENT IN JOINT OPERATION A joint operation is a joint arrangement whereby the parties that have the joint control of the arrangement have rights to the assets, and obligations for the liabilities, relating to the arrangement. The Group and the Company as a joint operator recognise in relation to its interest in a joint operation: – Its share of any assets held jointly; – Its share of any liabilities incurred jointly; – Its share of the revenue from the sale of the output by the joint operation; and – Its share of any expenses incurred jointly. The Group and the Company account for the assets, liabilities, revenue and expenses relating to its interest in a joint operation in accordance with the MFRSs applicable to the assets, liabilities, revenue and expenses. Profits and losses resulting from transactions between the Group and/or the Company and its joint operation are recognised in the Group’s and the Company’s financial statements only to the extent of the unrelated investors’ interest in the joint operation. 201 Integrated Report 2023
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