Sun Art Retail Group Limited - TodayIR.com

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(b)
Basis of preparation of the financial statements (continued)
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates are recognised in the period in which the estimate is revised if the
revision affects only that period, or in the period of the revision and future periods if the
revision affects both current and future periods.
Judgements made by management in the application of HKFRSs that have significant effect
on the financial statements and major sources of estimation uncertainty are discussed in
note 29.
(c)
Change in accounting policies
The HKICPA has issued a few amendments to HKFRSs that are first effective for the current
accounting period of the Group and the Company. None of these developments are relevant
to the Group’s financial statements and the Group has not applied any new standard or
interpretation that is not yet effective for the current accounting period.
(d)
Subsidiaries and non-controlling interests
Subsidiaries are entities controlled by the Group. Control exists when the Group has the
power to govern the financial and operating policies of an entity so as to obtain benefits
from its activities. In assessing control, potential voting rights that presently are exercisable
are taken into account.
An investment in a subsidiary is consolidated into the consolidated financial statements from
the date that control commences until the date that control ceases. Intra-group balances and
transactions and any unrealised profits arising from intra-group transactions are eliminated
in full in preparing the consolidated financial statements. Unrealised losses resulting from
intra-group transactions are eliminated in the same way as unrealised gains but only to the
extent that there is no evidence of impairment.
Non-controlling interests represent the equity in a subsidiary not attributable directly or
indirectly to the Company, and in respect of which the Group has not agreed any additional
terms with the holders of those interests which would result in the Group as a whole having
a contractual obligation in respect of those interests that meets the definition of a financial
liability. For each business combination, the Group can elect to measure any non-controlling
interests either at fair value or at their proportionate share of the subsidiary’s net identifiable
assets.
Sun Art Retail Group Limited
Annual Report 2012
59