Annual Report 2012 - IOI Group

5. SIGNIFICANT ACCOUNTING POLICIES (Continued)5.1 Basis of Consolidation (Continued)5.1.2 Subsidiaries (Continued)If a subsidiary uses accounting policies other than those adopted in the consolidated financial statements for liketransactions and events in similar circumstance, appropriate adjustments are made to its financial statements inpreparing the consolidated financial statements.Non-controlling interests represent the equity in subsidiaries that are not attributable, directly or indirectly, to ownersof the Company, and is presented separately in the consolidated statement of comprehensive income and withinequity in the consolidated statement of financial position, separately from equity attributable to owners of theCompany. Profit or loss and each component of other comprehensive income are attributed to the owners of theparent and to the non-controlling interests. Total comprehensive income is attributed to non-controlling interests evenif this results in the non-controlling interests having a deficit balance.Components of non-controlling interests in the acquiree that are present ownership interests and entitle their holdersto a proportionate share of the entity’s net assets in the event of liquidation may be initially measured at either fair valueor at the present ownership instruments’ proportionate share in the recognised amounts of the acquiree’s identifiablenet assets. All other components of non-controlling interests shall be measured at their acquisition date fair values,unless another measurement basis is required by FRSs. The choice of measurement basis is made on a combination-bycombinationbasis. Subsequent to initial recognition, the carrying amount of non-controlling interests is the amount ofthose interests at initial recognition plus the non-controlling interests’ share of subsequent changes in equity.The Group has applied the revised FRS 3 Business Combinations in accounting for business combinations from 1 July2011 onwards. The change in accounting policy has been applied prospectively in accordance with the transitionalprovisions provided by the Standard.Changes in the Company owners’ ownership interest in a subsidiary that do not result in a loss of control are accountedfor as equity transactions. In such circumstances, the carrying amounts of the controlling and non-controlling interestsare adjusted to reflect the changes in their relative interests in the subsidiary. Any difference between the amount bywhich the non-controlling interests is adjusted and the fair value of consideration paid or received is recogniseddirectly in equity and attributed to owners of the parent.When the Group loses control of a subsidiary as a result of a transaction, event or other circumstance, profit or loss ondisposal is calculated as the difference between:i. the aggregate of the fair value of the consideration received and the fair value of any retained interest; andii.the previous carrying amounts of the assets (including goodwill), and liabilities of the subsidiary and any noncontrollinginterests.Amounts previously recognised in other comprehensive income in relation to the subsidiary are accounted for (i.e.reclassified to profit or loss or transferred directly to retained earnings) in the same manner as would be required ifthe relevant assets or liabilities were disposed of. The fair value of any investments retained in the former subsidiaryat the date when control is lost is regarded as the fair value on initial recognition for subsequent accounting underFRS 139 Financial Instruments: Recognition and Measurement or, where applicable, the cost on initial recognition of aninvestment in associate or jointly controlled entity.Annual Report 2012IOI CORPORATION BERHAD 133