cont'd - KNM Steel Sdn Bhd

58KNM GROUP BERHAD I Annual Report 2012Notes to the Financial Statements (cont’d)2. Significant accounting policies (Cont’d)(a)Basis of consolidation (cont’d)(v)Associates (cont’d)When the Group’s share of losses exceeds its interest in an equity accounted associate, thecarrying amount of that interest including any long-term investments is reduced to zero and therecognition of further losses is discontinued except to the extent that the Group has an obligationor has made payments on behalf of the associate.When the Group ceases to have significant influence over an associate, it is accounted for as adisposal of the entire interest in that associate, with a resulting gain or loss being recognised inprofit or loss. Any retained interest in the former associate at the date when significant influenceis lost is re-measured at fair value and this amount is regarded as the initial carrying amount of afinancial asset.When the Group’s interest in an associate decreases but does not result in a loss of significantinfluence, any retained interest is not re-measured. Any gain or loss arising from the decreasein interest is recognised in profit or loss. Any gains or losses previously recognised in othercomprehensive income are also reclassified proportionately to the profit or loss.Investments in associates are measured in the Company’s statement of financial position at costless any impairment losses, unless the investment is classified as held for sale or distribution. Thecost of investments includes transaction costs.(vi)Jointly-controlled entitiesA jointly-controlled entities are those entities over whose activities the Group has joint control,established by contractual agreement and requiring unanimous consent for strategic financial andoperating decisions.Jointly controlled entities are accounted for in the consolidated financial statements using theequity method less any impairment losses, unless it is classified as held for sale or distribution (orincluded in a disposal group that is classified as held for sale or distribution). The consolidatedfinancial statements include the Group’s share of the profit or loss and other comprehensive incomeof the equity-accounted joint ventures, after adjustments, if any, to align the accounting policieswith those of the Group, from the date that joint control commences until the date that joint controlceases.When the Group’s share of losses exceeds its interest in an equity- accounted joint venture, thecarrying amount of that interest (including any long-term investments) is reduced to zero and therecognition of further losses is discontinued except to the extent that the Group has an obligationor has made payments on behalf of the joint venture.Investments in joint ventures are stated in the Company’s statement of financial position at costless impairment losses, unless the investment is classified as held for sale or distribution.(vii) Non-controlling interestsNon-controlling interests at the end of the reporting period, being the equity in a subsidiarynot attributable directly or indirectly to the equity holders of the Company, are presented in theconsolidated statement of financial position and statement of changes in equity within equity,separately from equity attributable to the owners of the Company. Non -controlling interests in theresults of the Group is presented in the consolidated statement of comprehensive income as anallocation of the profit or loss and the comprehensive income for the year between non -controllinginterests and the owners of the Company.Losses applicable to the non-controlling interests in a subsidiary are allocated to the non-controllinginterests even if doing so causes the non -controlling interests to have a deficit balance.