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Among the disclosures required to meet the foregoing objective are the five following [IFRS 3.B67]:
1. Details when the initial accounting for a business combination is incomplete for particular assets, liabilities, noncontrolling interests, or items of consideration
(and the fact that the amounts recognized in the financial statements for the business combination thus have been determined only provisionally)
2. Follow-up information on contingent consideration
3. Follow-up information about contingent liabilities recognized in a business combination
4. A reconciliation of the carrying amount of goodwill at the beginning and end of the reporting period, with various details shown separately
5. The amount and an explanation of any gain or loss recognized in the current reporting period that both
a. Relates to the identifiable assets acquired or liabilities assumed in a business combination that was effected in the current or previous reporting period
b. Is of such a size, nature, or incidence that disclosure is relevant to understanding the combined entity’s financial statements
Notes to financial statements
Consolidation
EXTRACTS FROM PUBLISHED FINANCIAL STATEMENTS
J SAINSBURY PLC, 2009
The Group’s financial statements include the results of the Company and all of its subsidiaries, together with the Group’s share of the posttax results of its joint
ventures.
Subsidiaries
Subsidiaries are all entities over which the Group has the power to govern the financial and operating policies generally accompanying a shareholding of more
than one half of the voting rights. The results of subsidiaries are included in the Group statement of comprehensive income from the date of acquisition, or in
the case of disposals, up to the effective date of disposal. Intercompany transactions and balances between Group companies are eliminated upon consolidation.
The purchase method of accounting is used to account for the acquisition of subsidiaries by the Group. The cost of acquisition is measured as the fair value of
the assets given, equity instruments issued, and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the acquisition.
Identifiable assets and liabilities acquired are measured at fair value at the acquisition date. The excess of cost over the fair value of the Group’s share of
identifiable assets and liabilities acquired is recorded as goodwill.
Joint ventures
Joint ventures are jointly controlled entities in which the Group has an interest. The Group’s share of the results of its joint ventures is included in the Group
statement of comprehensive income using the equity method of accounting. Where the Group transacts with a joint venture, profits and losses are eliminated to
the extent of the Group’s interest in the joint venture. Losses may provide evidence of an impairment of the assets transferred in which case appropriate
provision is made for impairment.
Investments in joint ventures are carried in the Group statement of financial position at cost plus post-acquisition changes in the Group’s share of net assets of
the entity, less any impairment in value.
Investments in subsidiaries and joint ventures are carried at cost less any impairment loss in the financial statements of the Company.
Interest in subsidiaries
BARLOWORLD
Consolidated Financial Statements 2009
The consolidated financial statements incorporate the assets, liabilities, income, expenses, and cash flows of the Company and all entities controlled by the
Company as if they are a single economic entity. Control is achieved where the Company has the power to govern the financial and operating policies of an
entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the period are included in the consolidated statement of comprehensive income from the date of
acquisition or up to the date of disposal.