Annual Report 2011 - QuamIR

Notes to the Consolidated Financial StatementsFor the year ended 31 March 20113. Significant Accounting Policies (continued)Financial instruments (continued)Derecognition (continued)On derecognition of a financial asset other than in its entirety (e.g. when the Group retains an option torepurchase part of a transferred asset or retains a residual interest that does not result in the retentionof substantially all the risks and rewards of ownership and the Group retains control), the Group allocatesthe previous carrying amount of the financial asset between the part it continues to recognize undercontinuing involvement, and the part it no longer recognizes on the basis of the relative fair values ofthose parts on the date of the transfer. The difference between the carrying amount allocated to the partthat is no longer recognized and the sum of the consideration received for the part no longer recognizedand any cumulative gain or loss allocated to it that had been recognized in other comprehensive incomeis recognized in profit or loss. A cumulative gain or loss that had been recognized in other comprehensiveincome is allocated between the part that continues to be recognized and the part that is no longerrecognized on the basis of the relative fair values of those parts.The Group derecognizes financial liabilities when, and only when, the Group’s obligations are discharged,canceled or they expire. The difference between the carrying amount of the financial liability derecognizedand the consideration paid and payable is recognized in profit or loss.Related partiesA party is considered to be related to the Group if:(a)the party, directly or indirectly through one or more intermediaries, (i) controls, is controlledby, or is under common control with, the Group; (ii) has an interest in the Group that gives itsignificant influence over the Group; or (iii) has joint control over the Group;(b)the party is an associate;(c)the party is a jointly-controlled entity;(d)the party is a member of the key management personnel of the Group or its parent;(e)the party is a close member of the family of any individual referred to in (a) or (d);(f)the party is an entity that is controlled, jointly controlled or significantly influenced by or forwhich significant voting power in such entity resides with, directly or indirectly, any individualreferred to in (d) or (e); or(g)the party is a post-employment benefit plan for the benefit of the employees of the Group, or ofany entity that is a related party of the Group.Sino Prosper State Gold Resources Holdings Limited70