Annual Report 2011 - QuamIR

Notes to the Consolidated Financial StatementsFor the year ended 31 March 20113. Significant Accounting Policies (continued)Business combinations (continued)Business combinations that took place prior to 1 April 2010 (continued)The minority interest in the acquiree was initially measured at the minority interest’s proportionateshare of the recognized amounts of the assets, liabilities and contingent liabilities of the acquiree.Contingent consideration was recognized, if and only if, the contingent consideration was probableand could be measured reliably. Subsequent adjustments to contingent consideration were recognizedagainst the cost of the acquisition.Business combinations achieved in stages were accounted for as separate steps. Goodwill was determinedat each step. Any additional acquisition did not affect the previously recognized goodwill.SubsidiariesA subsidiary is an entity that is controlled by the Company, where the Company has the power to governthe financial and operating policies of such entity so as to obtain benefits from its activities.In the Company’s statement of financial position, investments in subsidiaries are stated at cost lessprovision for impairment losses. The results of subsidiaries are accounted for by the Company on thebasis of dividends received and receivable.GoodwillGoodwill arising on an acquisition of a business is carried at costs less accumulated impairment losses,if any, and is presented separately in the consolidated statement of financial position.For the purposes of impairment testing, goodwill is allocated to each of the Group’s cash-generating units (orgroups of cash-generating units) that is expected to benefit from the synergies of the combination.A cash-generating unit to which goodwill has been allocated is tested for impairment annually, or morefrequently when there is indication that the unit may be impaired. If the recoverable amount of thecash-generating unit is less than its carrying amount, the impairment loss is allocated first to reducethe carrying amount of any goodwill allocated to the unit and then to the other assets of the unit on apro-rata basis based on the carrying amount of each asset in the unit. Any impairment loss for goodwillis recognized directly in profit or loss in the consolidated statement of comprehensive income. Animpairment loss recognized for goodwill is not reversed in subsequent periods.On disposal of the relevant cash-generating unit, the attributable amount of goodwill is included in thedetermination of the profit or loss on disposal.Sino Prosper State Gold Resources Holdings Limited52