FINANCIAL STATEMENTS - Mewah Group

MEWAH INTERNATIONAL INC.NOTES TOTHE FINANCIAL STATEMENTSFor the financial year ended 31 December 20122. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)2.3 Group accounting (continued)(a) Subsidiaries (continued)(ii) Acquisitions (continued)equivalents and fair values of other consideration; and merged subsidiary is taken to merger reserve. Cash paid/payable arising from the acquisition under common controlis also taken to the merger reserves.(iii) Disposals of subsidiaries or businessesWhen a change in the Group’s ownership interest in a subsidiary results in a loss of control over the subsidiary, theassets and liabilities of the subsidiary including any goodwill are derecognised. Amounts previously recognised in othercomprehensive income in respect of that entity are also reclassified to profit or loss or transferred directly to retainedearnings if required by a specific Standard.Any retained equity interest in the entity is remeasured at fair value. The difference between the carrying amount of theretained interest at the date when control is lost and its fair value is recognised in profit or loss.Please refer to Note 2.6 for the accounting policy on investments in subsidiaries in the separate financial statements ofthe Company.(b) Transactions with non-controlling interestsChanges in the Group’s ownership interest in a subsidiary that do not result in a loss of control over the subsidiary areaccounted for as transactions with equity owners of the Company. Any difference between the change in the carrying amountsof the non-controlling interest and the fair value of the consideration paid or received is recognised in general reserve withinequity attributable to the equity holders of the Company.(c) Associated companiesAssociated companies are entities over which the Group has significant influence, but not control, generally accompanied by ashareholding giving rise to voting rights of 20% and above but not exceeding 50%. Investments in associated companies areaccounted for in the consolidated financial statements using the equity method of accounting less impairment losses, if any.52