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Financial
Statements
& Others
130
Gamuda Berhad (29579-T)
Annual Report 2013
2. Summary of significant accounting policies (cont’d.)
2.4 Basis of consolidation
The consolidated financial statements comprise the financial statements of the Company and its subsidiaries
as at reporting date. 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. When the reporting dates of
the parent and of the subsidiary are different, the subsidiary prepares additional financial statements as of
the same date as that of the parent for consolidation purposes. Consistent accounting policies are applied to
like transactions and events in similar circumstances.
All intra-group balances, income and expenses and unrealised gains and losses resulting from intra-group
transactions are eliminated in full. Intragroup losses that indicate an impairment may require recognition in
the consolidated financial statements.
Acquisitions of subsidiaries are accounted for by applying the acquisition method. Identifiable assets acquired
and liabilities assumed in a business combination are measured initially at their fair values at the acquisition
date. Acquisition-related costs are recognised as expenses in the periods in which the costs are incurred and
the services are received.
In business combinations achieved in stages, previously held equity interests in the acquiree are re-measured
to fair value at the acquisition date and any corresponding gain or loss is recognised in profit or loss.
The Group elects for each individual business combination, whether non-controlling interest in the acquiree (if
any) is recognised on the acquisition date at fair value, or at the non-controlling interest’s proportionate share
of the acquiree net identifiable assets.
Any excess of the sum of the fair value of the consideration transferred in the business combination, the
amount of non-controlling interest in the acquiree (if any), and the fair value of the Group’s previously held
equity interest in the acquiree (if any), over the net fair value of the acquiree’s identifiable assets and liabilities
is recorded as goodwill in the statement of financial position. The accounting policy for goodwill is set out in
Note 2.9(a). In instances where the latter amount exceeds the former, the excess is recognised as a gain on
bargain purchase in profit or loss on the acquisition date.
When the Group acquires a business, embedded derivatives separated from the host contract by the
acquiree are reassessed on acquisition unless the business combination results in a change in the terms of
the contract that significantly modifies the cash flows that would otherwise be required under the contract.
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.
2.5 Transactions with non-controlling interest
Non-controlling interest represents the equity in subsidiaries not attributable, directly or indirectly, to owners
of the Company, and is presented separately in the consolidated income statement, consolidated statement
of comprehensive income and within equity in the consolidated statement of financial position, separately
from equity attributable to owners of the Company.
Notes to the Financial Statements
31 July 2013