Annual Report - QuamIR
Annual Report - QuamIR
Annual Report - QuamIR
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Notes to the Consolidated Financial Statements (Continued)<br />
<br />
2 Summary of significant accounting policies (Continued)<br />
2.2 Consolidation (Continued)<br />
(c)<br />
Associated companies (Continued)<br />
The Group’s share of its associated companies’<br />
post-acquisition profits or losses is recognised in the<br />
consolidated income statement, and its share of postacquisition<br />
movements in other comprehensive income<br />
is recognised in other comprehensive income. The<br />
cumulative post-acquisition movements are adjusted<br />
against the carrying amount of the investment. When<br />
the Group’s share of losses in an associated company<br />
equals or exceeds its interest in the associated company,<br />
including any other unsecured receivables, the Group does<br />
not recognise further losses, unless it has incurred legal or<br />
constructive obligations or made payments on behalf of<br />
the associated company.<br />
Unrealised gains on transactions between the Group and<br />
its associated companies are eliminated to the extent of the<br />
Group’s interest in the associated companies. Unrealised<br />
losses are also eliminated unless the transaction provides<br />
evidence of an impairment of the asset transferred.<br />
Accounting policies of associated companies have been<br />
changed where necessary to ensure consistency with the<br />
policies adopted by the Group.<br />
Dilution gains and losses arising in investments in<br />
associated companies are recognised in consolidated<br />
income statement.<br />
In the Company’s balance sheet the investments in<br />
associated companies are stated at cost less provision for<br />
impairment losses. The results of associated companies<br />
are accounted for by the Company on the basis of<br />
dividend received and receivable.<br />
Gains and losses on disposals are determined by<br />
comparing the proceeds with the carrying amount and<br />
are recognised within other income or other and general<br />
expenses in the consolidated income statement.<br />
2 <br />
2.2 <br />
(c)<br />
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(d)<br />
Jointly controlled entities<br />
A jointly controlled entity is a contractual arrangement<br />
whereby the Group and other parties undertake an<br />
economic activity which is subject to joint control and none<br />
of the participating parties has unilateral control over the<br />
economic activity.<br />
(d)<br />
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86 HKC (Holdings) Limited • <strong>Annual</strong> <strong>Report</strong> 2011