2. Summary of significant accounting policies (cont’d)
2.4 Foreign currency (cont’d)
(b) Consolidated financial statements
For consolidation purpose, the assets and liabilities of foreign operations are
translated into SGD at the exchange rates ruling at the end of the reporting period
and their profit or loss are translated at the exchange rates prevailing at the date of
the transactions. The exchange differences arising on the translation are recognised
in other comprehensive income. On disposal of a foreign operation, the component
of other comprehensive income relating to that particular foreign operation is
recognised in profit or loss.
In the case of a partial disposal without loss of control of a subsidiary that includes a
foreign operation, the proportionate share of the cumulative amount of the exchange
differences are re-attributed to non-controlling interest and are not recognised in
profit or loss. For partial disposals of associates or joint venture entities that are
foreign operations, the proportionate share of the accumulated exchange differences
is reclassified to profit or loss.
2.5 Basis of consolidation and business combinations
(a) Basis of consolidation
The consolidated financial statements comprise the financial statements of the
Company and its subsidiaries as at the end of the reporting period. The financial
statements of the subsidiaries used in the preparation of the consolidated financial
statements are prepared for the same reporting date as the Company. Consistent
accountingpolicies are applied to like transactions andevents in similar circumstances.
All intra-group balances, income and expenses and unrealised gains and losses
resulting from intra-group transactions and dividends are eliminated in full.
Subsidiaries are consolidated from the date of acquisition, being the date on which
the Group obtains control, and continue to be consolidated until the date that such
control ceases.
Losses within a subsidiary are attributed to the non-controlling interest even if that
results in a deficit balance.
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:
• Derecognises the assets (including goodwill) and liabilities of the subsidiary at
their carrying amounts at the date when control is lost;
• Derecognises the carrying amount of any non-controlling interest;
• Derecognises the cumulative translation differences recorded in equity;
NOTES TO THE FINANCIAL
STATEMENTS
For the financial year ended 30 June 2015
ASL Marine Holdings Ltd. /Annual Report 2015
79
