SEC Form 17-A: Annual Report - the solid group inc website

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Goodwill (positive) represents the excess of acquisition cost over the Parent’s
share in the fair value of the identifiable net assets of the acquired subsidiary at the
date of acquisition. Negative goodwill represents the excess of Parent Company’s
share in the fair value of identifiable net assets of the subsidiary at date of
acquisition over acquisition cost.
On initial recognition, the assets and liabilities of the subsidiary are included in the
consolidated statement of financial statement at their fair values, which are also
used as the bases for subsequent measurement in accordance with the Group’s
accounting policies.
(b)
Transactions with NCI
The Group’s transactions with NCI that do not result in loss of control are
accounted for as equity transactions – that is, as transaction with the owners of
the Group in their capacity as owners. The difference between the fair value of
any consideration paid and the relevant share acquired of the carrying value of the
net assets of the subsidiary is recognized in equity. Disposals of equity
investments to NCI interests result in gains and losses for the Group that are also
recognized in equity.
When the Group ceases to have control over a subsidiary, any retained interest in
the entity is remeasured to its fair value at the date when control is lost, with the
change in carrying amount recognized in profit or loss. The fair value is the initial
carrying amount for the purposes of subsequently accounting for the retained
interest as an associate, joint venture or financial asset. In addition, any amounts
previously recognized 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. This may mean that amounts previously recognized in other
comprehensive income are reclassified to profit or loss.
2.4 Segment Reporting
Operating segments are reported in a manner consistent with the internal reporting
provided to the Group’s strategic steering committee; its chief operating
decision-maker. The strategic steering committee is responsible for allocating resources
and assessing performance of the operating segments.
In identifying its operating segments, management generally follows the Group’s
products and service lines as disclosed in Note 4, which represent the main products
and services provided by the Group.
Each of these operating segments is managed separately as each of these service lines
requires different technologies and other resources as well as marketing approaches.
All inter-segment transfers are carried out at arm’s length prices.
The measurement policies the Group uses for segment reporting under PFRS 8,
Operating Segments, are the same as those used in its financial statements. However,
corporate assets which are not directly attributable to the business activities of any
operating segment are not allocated to any segment.
There have been no changes from prior periods in the measurement methods used to
determine reported segment profit or loss.