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44 GoodLand Group Limited
Notes to the Financial Statements
30 September 2012
2 Signifcant Accounting Policies (cont’d)
(b) Currency Translation (cont’d)
Consolidation Adjustments
On consolidation, currency exchange differences arising from the net investment in foreign entities and
borrowings and other currency instruments designated as hedges of such investments are recognised in
currency translation reserves. Additionally, when a foreign operation is disposed of, such currency exchange
differences are recognised in proft or loss as part of the gain or loss on disposal.
(c) Subsidiaries
Consolidation
Subsidiaries are entities over which the Group has power to govern the fnancial and operating policies,
generally accompanied by a shareholding of more than one half of the voting rights. The existence and
effect of potential voting rights that are currently exercisable or convertible are considered when assessing
the Group has control over another entity. Subsidiaries are consolidated from the date when control is
transferred to the Group to the date when the control ceases.
In preparing the consolidated fnancial statements, transactions, balances and unrealised gains on
transactions between group companies are eliminated. Unrealised losses are also eliminated unless the
transaction provides evidence of an impairment of the asset transferred. Where necessary, adjustments
are made to the subsidiaries’ fnancial statements to ensure consistency of accounting policies with that of
the Group.
Investments in subsidiaries are stated at cost less accumulated impairment losses in the Company’s balance
sheet. On disposal of investments in subsidiaries, the difference between the net disposal proceeds and the
carrying amount of the investments are then recognised in proft or loss.
Non-controlling interests are that part of the net results of operations and of net assets of a subsidiary
attributable to the interests which are not owned directly or indirectly by the equity holders of the Company.
They are shown separately in the consolidated statement of comprehensive income, consolidated
statement of changes in equity and consolidated balance sheet. Total comprehensive income is attributed
to the non-controlling interests based on their respective interests in a subsidiary, even if this results in the
non-controlling interests having a defcit balance.
Acquisition of Businesses
The acquisition method of accounting is used to account for business combinations by the Group.
The consideration transferred for the acquisition of a subsidiary comprises the fair values of the assets
transferred, the liabilities incurred and the equity interests issued by the Group. The consideration transferred
also includes the fair value of any contingent consideration arrangement and the fair value of any pre-
existing equity interest in the subsidiary.
Acquisition related costs are expensed as incurred.
Identifable assets acquired and liabilities and contingent liabilities assumed in a business combination are,
with limited exceptions, measured initially at their fair values at the acquisition date.
On an acquisition-by-acquisition basis, the Group recognises any non-controlling interest in the acquiree
at the date of acquisition either at fair value or at the non-controlling interest’s proportionate share of the
acquiree’s net identifable assets.
The excess of the consideration transferred, the amount of any non-controlling interest in the acquiree and
the acquisition-date fair value of any previous equity interest in the acquiree over the fair value of the net
identifable assets acquired is recorded as goodwill.