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45 Annual Report 2012
2 Signifcant Accounting Policies (cont’d)
(c) Subsidiaries (cont’d)
Disposals of Subsidiaries or Businesses
When a change in the Group’s ownership interest in a subsidiary results in a loss of control over the subsidiary,
the assets and liabilities of the subsidiary including any goodwill are derecognised. Amounts previously
recognised in other comprehensive income in respect of that entity are also reclassifed to proft or loss or
transferred directly to retained earnings if required by a specifc Standard.
Any retained interest in the entity is remeasured at fair value. The difference between the carrying amount
of the retained investment at the date when control is lost and its fair value is recognised in proft or loss.
Transactions with Non-Controlling Interests
Changes in the Company’s ownership interest in a subsidiary that do not result in a loss of control over the
subsidiary are accounted for as transactions with equity owners of the Group. Any difference between
the change in the carrying amounts of the non-controlling interests and the fair value of the consideration
paid or received is recognised in a separate reserve within equity attributable to the equity holders of the
Company.
(d) Investments in Associated Companies
Associated companies are entities over which the Group has signifcant infuence, but no control over, and
generally accompanied by a shareholding giving rise to between and including 20% and 50% of the voting
rights. Investments in associated companies are accounted for in the consolidated fnancial statements
using the equity method of accounting less impairment losses.
Investments in associated companies are initially recognised at cost. The cost of an acquisition is measured
at the fair value of the assets given, equity instruments issued or liabilities incurred or assumed at the date of
exchange, plus costs directly attributable to the acquisition.
In applying the equity method of accounting, the Group’s share of its associated companies’
post-acquisition profts or losses are recognised in proft or loss and the share of post-acquisition movements
in reserves are recognised in equity directly. These post-acquisition movements are adjusted against the
carrying amount of the investment. When the Group’s share of losses in the associated company equals or
exceeds its interest in the associated company, the Group does not recognise further losses, unless it has
obligations to make or has made payments on behalf of the associated company.
Unrealised gains on transactions between the Group and its associated companies are eliminated to the
extent of the Group’s interest in the associated companies. Unrealised losses are also eliminated unless the
transaction provides evidence of an impairment of the asset transferred. Where necessary, adjustments are
made to the associated companies’ fnancial statements to ensure consistency of accounting policies with
that of the Group.
(e) Property, Plant and Equipment
Property, plant and equipment are stated at cost less accumulated depreciation and impairment losses.
The cost of an item of property, plant and equipment includes its purchase price and any cost that is directly
attributable to bringing the asset to the location and condition necessary for it to be capable of operating
in the manner intended by management. The projected cost of dismantlement, removal or restoration is
also included as part of the cost of property, plant and equipment if the obligation for the dismantlement,
removal and restoration is incurred as a consequence of acquiring or using the asset.
Property under construction are carried at cost, less any recognised impairment loss. Cost includes
professional fees, and for qualifying assets, borrowing costs are capitalised in accordance with the Group’s
accounting policy.
Subsequent expenditure relating to property, plant and equipment that has already been recognised is
added to the carrying amount of the asset only when it is probable that future economic benefts associated
with the item will fow to the Group and the cost of the item can be measured reliably. All other repair and
maintenance expenses are recognised in proft or loss when incurred.
Notes to the Financial Statements
30 September 2012