When the Group has less than a majority of the voting or
similar rights of an investee, the Group considers all relevant
facts and circumstances in assessing whether it has power
over an investee, including:
• The contractual arrangement with the other
vote holders of the investee;
• Rights arising from other contractual arrangements; and
The Group’s voting rights and potential voting rights.
The Group re-assesses whether or not it controls an investee
if facts and circumstances indicate that there are changes to
one or more of the three elements of control. Consolidation
of a subsidiary begins when the Group obtains control over
the subsidiary and ceases when the Group loses control of the
subsidiary. Assets, liabilities, income and expenses of a subsidiary
acquired or disposed of during the year are included in the statement
of comprehensive income from the date the Group gains control
until the date the Group ceases to control the subsidiary.
Prot or loss and each component of other comprehensive income
(“OCI”) are attributed to the equity holders of the parent of the
Group and to the non-controlling interests, even if this results in the
non-controlling interests having a decit balance. When necessary,
adjustments are made to the nancial statements of subsidiaries to
bring their accounting policies into line with the Group’s accounting
policies. All intra-group assets and liabilities, equity, income,
expenses and cashows relating to transactions between members
of the Group are eliminated in full on consolidation.
A change in the ownership interest of a subsidiary, without
a loss of control, is accounted for as an equity transaction. If
the Group loses control over a subsidiary it, de-recognises the
assets (including goodwill) and liabilities of the subsidiary; de-
recognises the carrying amount of any non-controlling interests;
de-recognises the cumulative translation differences recorded
in equity; recognises the fair value of the consideration received;
recognises the fair value of any investment retained; recognises
any surplus or decit in prot or loss; and reclassies the parent’s
share of components previously recognised in OCI to prot or
loss or retained earnings, as appropriate, as would be required if
the Group had directly disposed of the related assets or liabilities.
d) Business Combinations
Business combinations are accounted for using the acquisition
method. The cost of an acquisition is measured as the aggregate
of the consideration transferred measured at acquisition date
fair value and the amount of any non-controlling interests in
the acquiree. For each business combination, the Group elects
whether to measure the non-controlling interests in the acquiree
at fair value or at the proportionate share of the acquiree’s
identiable net assets.
Acquisition-related costs are expensed as incurred and included
in administrative expenses.
When the Group acquires a business, it assesses the nancial
assets and liabilities assumed for appropriate classication and
designation in accordance with the contractual terms, economic
circumstances and pertinent conditions as at the acquisition date.
This includes the separation of embedded derivatives
in host contracts by the acquiree.
If the business combination is achieved in stages, any previously
held equity interest is re-measured at its acquisition date fair
value and any resulting gain or loss is recognised in prot or loss.
It is then considered in the determination of goodwill.
Any contingent consideration to be transferred by the acquirer
will be recognised at fair value at the acquisition date.
Contingent consideration classied as an asset or liability that is a
nancial instrument and within the scope of AASB 139 Financial
Instruments: Recognition and Measurement, is measured at fair
value with changes in fair value recognised either in prot or
loss or as a change to OCI. If the contingent consideration is not
within the scope of AASB 139, it is measured in accordance with
the appropriate AASB. Contingent consideration that is classied
as equity is not re-measured and subsequent settlement is
accounted for within equity.
Goodwill is initially measured at cost, being the excess of the
aggregate of the consideration transferred and the amount
recognised for non-controlling interests, and any previous interest
held, over the net identiable assets acquired and liabilities
assumed. If the fair value of the net assets acquired is in excess of
the aggregate consideration transferred, the Group re-assesses
whether it has correctly identied all of the assets acquired and
all of the liabilities assumed and reviews the procedures used to
measure the amounts to be recognised at the acquisition date. If the
re-assessment still results in an excess of the fair value of net assets
acquired over the aggregate consideration transferred, then the gain
is recognised in prot or loss.
After initial recognition, goodwill is measured at cost less
any accumulated impairment losses. For the purpose of
impairment testing, goodwill acquired in a business combination
is, from the acquisition date, allocated to each of the Group’s
cash-generating units that are expected to benet from the
combination, irrespective of whether other assets or liabilities
of the acquiree are assigned to those units. Where goodwill
has been allocated to a cash-generating unit and part of
the operation within that unit is disposed of, the goodwill
associated with the disposed operation is included in the
carrying amount of the operation when determining the gain
or loss on disposal. Goodwill disposed in these circumstances
is measured based on the relative values of the disposed
operation and the portion of the cash-generating unit retained.
e) Investments in Associates and Joint Ventures
An associate is an entity over which the Group has signicant
inuence. Signicant inuence is the power to participate in the
nancial and operating policy decisions of the investee, but is not
control or joint control over those policies.
A joint venture is a type of joint arrangement whereby the parties
that have joint control of the arrangement have rights to the net
assets of the joint venture. Joint control is the contractually agreed
sharing of control of an arrangement, which exists only when
decisions about the relevant activities require unanimous consent
of the parties sharing control.
Notes to the Financial Statements