DAYANG ENTERPRISE HOLDINGS BHD
(712243-U)
|
Annual Report
2015
74
2.
Significant accounting policies (cont’d)
(a) Basis of consolidation (cont’d)
(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 from the consolidated statement of financial position. 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 the financial and operating policies thereof.
Investments 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 distribution
(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 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.
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.
Notes to the
Financial Statements
(cont’d)
