Page 174 - CJ 2019 INTEGRATED REPORT

172
NOTES TO THE FINANCIAL
STATEMENTS 31 DECEMBER 2019 (CONTINUED)
1 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Consolidation (Continued)
• Subsidiaries (Continued)
The The Group applies the the the the the the acquisition acquisition method to to account for for for business combinations The The consideration transferred transferred for for for the the the the the the acquisition acquisition of of of of a a a a a a a a a a a a a a a a a a a a a subsidiary is is is is the the the the the the the the the the fair fair values of of of of the the the the the the the the the the assets transferred transferred transferred the the the the the the the the the the liabilities incurred to to the the the the the the the the the the former owners of of of of the the the the the the the the acquiree and and and the the the the the the the the equity interests issued by the the the the the the the the Group The consideration consideration transferred transferred includes the the the the the the the the fair fair value value of of of of any asset asset or liability resulting from a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a contingent contingent consideration consideration arrangement Identifiable assets acquired and and and liabilities liabilities and and and contingent contingent liabilities liabilities assumed in in in in in in in in in in a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a business combination are measured initially at at at at at at their fair fair values at at at at at at the the the the acquisition acquisition acquisition date The Group recognises any non-controlling non-controlling interest interest in in in in in in in in in in the the the the the the acquiree acquiree on on on on on on on on on on on an an acquisition-by-acquisition basis either at at at at at at at fair fair value or or at at at the the the the non-controlling non-controlling interest’s proportionate share of of the the the the recognised amounts of of acquiree’s identifiable net assets Acquisition-related costs are expensed as incurred If the the the the the business combination is is is is is achieved in in in in in in in in stages the the the the the acquisition acquisition date date carrying value value of the the the the the acquirer’s previously held equity interest in in in in in in in in in the the the the the acquiree is is is is is is remeasured to fair value value at at at at the the the the the acquisition acquisition date date any gains and losses arising from such re-measurement are recognised in in in profit or loss Any contingent contingent consideration consideration to to to be be transferred by the the the the Group is is is is is recognised at at at at at at fair fair value value at at at at at at the the the the acquisition date Subsequent changes to to to to the the the the the the fair fair value value of o the the the the the the contingent contingent consideration consideration that is is is is is is deemed to to to to be be an an an an an asset or or or or liability is is is is is is recognised in in in in in in accordance with with IAS 39 either in in in in in in profit or or or or or loss or or or or or as as as as as a a a a a a a a a a a a a a a a a a a a change change to to to other comprehensive income Contingent consideration that is is is is classified as as as as equity equity is is is is not remeasured and its subsequent settlement is is is is accounted for within equity equity The excess of of of of the the the the the the the consideration transferred the the the the the the the amount of of of of any any non-controlling interest interest in in in in in the the the the the the the acquiree acquiree and the the the the the the the acquisition-date fair fair value value of of of of of any any previous equity interest interest interest in in in in in in in the the the the the the the the acquiree acquiree over the the the the the the the the fair fair value value of of of of of the the the the the the the the identifiable net assets assets acquired acquired is is is is recorded as as as as as goodwill If the the the the the the the the total of of of of of of consideration transferred non-controlling interest interest interest recognised and previously held interest interest measured is is is is is less than the the the the the the fair value of of of of o the the the the the the net assets assets of of of of o the the the the the the subsidiary acquired acquired in in in in in in the the the the the the case of of of of o a a a a a a a a a a a a a a a a a a a bargain purchase the the the difference is is is recognised directly in in in profit or loss Inter-company transactions transactions transactions balances income and and expenses on on on on transactions transactions transactions between group companies are are are eliminated eliminated Profits and and losses resulting from inter-company transactions transactions transactions that are are are recognised in in in in in in in assets are are are also eliminated eliminated Accounting policies policies o of subsidiaries have been changed where necessary to ensure consistency with the the policies policies adopted by the the Group • Changes in in in ownership interests in in in subsidiaries without change of control Transactions with with non-controlling interests that that do not result in in in in loss of of control control are accounted for as as as equity transactions transactions – that that is is as as as as transactions transactions with with the the the the the owners owners in in in in in in in their capacity as as as as owners owners The difference between fair value value of of of of of any consideration paid and the the the the the relevant share acquired of of of of the the the the the carrying value value of of of of net assets of of of of the the the the the subsidiary is is is recorded recorded in in in in in in in equity equity Gains or or or losses on on on disposals to non-controlling interests are are also recorded in in in in equity • Disposal of subsidiaries When the the the the the Group ceases to to have control control any retained interest in in in in in in in in the the the the the entity is is is is re-measured to to its fair fair value value at at the the the the the date when control control is is is is lost with the the the the the the the change in in in in in in in in in in in in fin carrying carrying amount amount recognised in in in in in in in in in in in in fin profit or or or or loss The fair fair value value is is is is the the the the the the the initial carrying carrying amount amount amount for for the the the the the purposes o of of subsequently accounting for for the the the the the retained interest as as as an an an an associate joint venture or or or or financial asset asset In addition any amounts amounts previously recognised in in in in fin in in in other comprehensive income in in in in fin in in in respect of of of that that entity are accounted for as as as as if i the the the the Group had directly disposed of of o the the the the related assets or or or liabilities This may mean that that amounts amounts previously recognised in in other comprehensive income are reclassified to profit or or or loss • Associates
Associates
are are are all all entities over which the the the Group has significant influence but not control generally accompanying a a a a a a a a a a a a a a a shareholding of of of between 20% and and 50% of of of the the the the the the voting rights Investments in in in in in in in in in in associates are are are accounted for using the the the the the the equity equity method method of of of of o of of accounting Under the the the the the the the the equity equity method method the the the the the the the the investment is is is is is initially recognised at at at cost and and the the the the the the the the carrying amount is is is is is is increased or or or decreased to to recognise recognise the the the the the the investor’s share of of o of of profit or or or loss of of o of of the the the the the the investee after the the the the the the date of of o of of acquisition acquisition The Group’s investment in in in in in associates includes goodwill identified on on acquisition If the the the ownership interest in in in in in in an an associate is is is is reduced but significant influence is is is is retained only a a a a a a a a a a a a proportionate share of o the the the amounts previously recognised in in in in in in other comprehensive income is is is is reclassified to profit or or loss where appropriate The Group’s share share of o o of post-acquisition profit profit or or or loss loss is is is is is is recognised recognised in in in in in in profit profit or or or loss loss and its share share of o o of post post acquisition acquisition movements in in in in in in in in in other other comprehensive comprehensive income income is is is is is is recognised recognised in in in in in in in in in other other comprehensive comprehensive income income with a a a a a a a a a a a a a a corresponding adjustment to the the the the the the the the the carrying amount of of the the the the the the the the the investment When the the the the the the the the the Group’s share of of losses in in in in in in in in in in in in an an associate associate equals or or exceeds its interest in in in in in in in in the the the the the the the the associate associate associate including any other unsecured receivables the the the the the the the the Group Group does not recognise further losses unless it it has incurred legal or or constructive obligations or or made payments on on on behalf of the the the the associate associate CURRIMJEE JEEWANJEE AND COMPANY LIMITED