2. Summary of significant accounting policies (cont’d)
2.29 Contingencies (cont’d)
(b) a present obligation that arises from past events but is not recognised because:
(i)
It is not probable that an outflow of resources embodying economic benefits
will be required to settle the obligation; or
(ii)
The amount of the obligation cannot be measured with sufficient reliability.
A contingent asset is a possible asset that arises from past events and whose existence
will be confirmed only by the occurrence or non-occurrence of one or more uncertain
future events not wholly within the control of the Group.
Contingent liabilities and assets are not recognised in the statement of financial position
of the Group, except for contingent liabilities assumed in a business combination that are
present obligations and which the fair values can be reliably determined.
2.30 Related parties
A related party is defined as follows:
(a)
A person or a close member of that person’s family is related to the Group and
Company if that person:
(i)
Has control or joint control over the Company;
(ii)
Has significant influence over the Company; or
(iii) Is a member of the key management personnel of the Group or Company or of
a parent of the Company.
(b) An entity is related to the Group and the Company if any of the following conditions
applies:
(i)
The entity and the Company are members of the same group (which means
that each parent, subsidiary and fellow subsidiary is related to the others).
(ii)
One entity is an associate or joint venture of the other entity (or an associate or
joint venture of a member of a group of which the other entity is a member).
(iii) Both entities are joint ventures of the same third party.
(iv) One entity is a joint venture of a third entity and the other entity is an associate
of the third entity.
(v)
The entity is a post-employment benefit plan for the benefit of employees of
either the Company or an entity related to the Company. If the Company is
itself such a plan, the sponsoring employers are also related to the Company.
NOTES TO THE FINANCIAL
STATEMENTS
For the financial year ended 30 June 2015
ASL Marine Holdings Ltd. /Annual Report 2015
101
