2. Summary of significant accounting policies (cont’d)
2.5 Basis of consolidation and business combinations (cont’d)
(b) Business combinations and goodwill (cont’d)
The cash-generating units to which goodwill have been allocated is tested for
impairment annually and whenever there is an indication that the cash-generating
unit may be impaired. Impairment is determined for goodwill by assessing the
recoverable amount of each cash-generating unit (or group of cash-generating
units) to which the goodwill relates.
2.6 Transactions with non-controlling interests
Non-controlling interest represents the equity in subsidiaries not attributable, directly or
indirectly, to owners of the Company.
Changes in the Company’s ownership interest in a subsidiary that do not result in a loss
of control are accounted for as equity transactions. In such circumstances, the carrying
amounts of the controlling and non-controlling interests are adjusted to reflect the
changes in their relative interests in the subsidiary. Any difference between the amount
by which the non-controlling interest is adjusted and the fair value of the consideration
paid or received is recognised directly in equity and attributed to owners of the Company.
2.7 Subsidiaries
A subsidiary is an investee that is controlled by the Group. The Group controls an investee
when it is exposed, or has rights, to the variable return from its involvement with the
investee and has the ability to affect those returns through its power over the investee.
In the Company’s separate financial statements, investments in subsidiaries are accounted
for at cost less impairment losses.
2.8 Joint arrangements
A joint arrangement is a contractual arrangement whereby two or more parties have joint
control. Joint control is the contractually agreed sharing of control of an arrangement,
which exists only when decisions about the relevant activities require the unanimous
consent of the parties sharing control.
A joint arrangement is classified either as joint operation or joint venture, based on the
rights and obligations of the parties to the arrangement.
To the extent the joint arrangement provides the Group with rights to the assets and
obligations for the liabilities relating to the arrangement, the arrangement is a joint
operation. To the extent the joint arrangement provides the Group with rights to the net
assets of the arrangement, the arrangement is a joint venture.
The Group recognises its interest in a joint venture as an investment and accounts for
the investment using the equity method. The accounting policy for investment in joint
ventures is set out in Note 2.9.
NOTES TO THE FINANCIAL
STATEMENTS
For the financial year ended 30 June 2015
ASL Marine Holdings Ltd. /Annual Report 2015
81
