2012 Annual Report - Media Prima Berhad

B
C
BASIS OF CONSOLIDATION (CONTINUED)
(b)
(c)
Associates (continued)
Where necessary, in applying the equity method, adjustments are made to the financial statements of associates
to ensure consistency of accounting policies with those of the Group.
Dilution gains and losses in associates are recognised in the profit or loss.
For incremental interest in an associate, the date of acquisition is the purchase date at each stage and goodwill
is calculated at each purchase date based on the fair value of assets and liabilities identified. There is no “step
up to fair value” of net assets previously acquired and the share of profits and equity movements for the
previously acquired stake is recorded directly through equity.
Transactions with non-controlling interest
The Group applies a policy of treating transactions with non-controlling interests as transactions with equity
owners to the Group. For purchases from non-controlling interests, the difference between any consideration
paid and the relevant share of the carrying value of net assets of the subsidiary acquired is deducted from
equity. For disposals to non-controlling interests, differences between any proceeds received and the relevant
share of non-controlling interests are also recognised in equity.
(d) Changes in ownership interests
When the Group ceases to have control, joint control or significant influence, any retained interest in the entity
is re-measured to its fair value with the change in carrying amount recognised in profit or loss. This fair value
is its fair value on initial recognition as a financial asset in accordance with FRS 139. Any amounts previously
recognised in other comprehensive income in respect of that entity are accounted for as if the Group had
directly disposed of the related assets or liabilities.
GOODWILL
Goodwill represents the excess of the cost of an acquisition over the fair value of the Group’s share of the net
identifiable assets of the acquired subsidiary at the date of acquisition. Goodwill on acquisitions of subsidiaries is
included in ‘Intangible Assets’.
Goodwill is tested annually for impairment and carried at cost less accumulated impairment losses. Impairment losses
on goodwill are not reversed. Gains and losses on the disposal of an entity include the carrying amount of goodwill
relating to the entity sold.
Goodwill is allocated to cash-generating units for the purpose of impairment testing. The allocation is made to those
cash-generating units or groups of cash-generating units that are expected to benefit from the synergies of the
business combination in which the goodwill arose identified according to the operating segment. See accounting
policy Note I on impairment of non-financial assets.
Goodwill in respect of acquisitions prior to 2006 were written off to reserves.
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2012
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