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267Reports andcertificationsConsolidatedannual financialstatementsShareholderinformationDefinitionsInstrumentcodesContactdetailsJoint venturesJoint ventures are those entities over which the group has joint controlin terms of a contractual agreement. Jointly controlled entities areincorporated into the group financial statements using the equity methodof accounting. The carrying amount of such investments is reduced torecognise any impairment in the value of individual investments, byapplying the impairment methodology described in 1.11.Where an entity within the group transacts with a joint venture of thegroup, unrealised profits and losses are eliminated to the extent of thegroup’s interest in the joint venture. When the group’s share of lossesexceeds the carrying amount of the joint venture, the carrying amountis reduced to nil. The recognition of further losses is discontinued, exceptto the extent that the group has incurred or guaranteed obligations inrespect of the joint venture.Investments in joint ventures that are held with the intention of disposingthereof within 12 months are accounted for and classified as non-currentassets held for sale in accordance with the methodology described in 1.10.CompanyInvestments in group companies are accounted for at cost lessimpairment losses in the company financial statements. The carryingamounts of these investments are reviewed annually and impaired whennecessary by applying the impairment methodology described in 1.11.Investments held by venture capital divisionsWhere the group has an investment in an associate or joint-venturecompany held by a venture capital division, whose primary business isto purchase and dispose of minority stakes in entities, the investmentis classified as designated at fair value through profit or loss, as thedivisions are managed on a fair-value basis. Changes in fair value of theseinvestments are recognised in non-interest revenue in profit or loss in theperiod in which they occur.Acquisitions and disposals of stakes in group companiesAcquisitions of subsidiaries (entities acquired) and businesses (assetsand liabilities acquired) are accounted for using the acquisition method.The cost of a business combination is measured as the aggregateof the fair values (at the acquisition date) of assets given, liabilitiesincurred or assumed, and equity instruments issued by the group inexchange for control of the acquiree. For all transactions subsequent to31 December 2008 acquisition-related costs are recognised in profitor loss as incurred. Prior to this date all acquisition-related costs werecapitalised to the cost of the acquisition.Where the cost of acquisition includes any asset or liability resultingfrom a contingent consideration arrangement, that asset or liability ismeasured at the acquisition date fair value. Subsequent changes in suchfair values are adjusted against the cost of acquisition where they qualifyas measurement period adjustments (see below). All other subsequentchanges in the fair value of a contingent consideration classified as anasset or liability are accounted for in accordance with the relevant IFRSs.Changes in the fair value of a contingent consideration that have beenclassified as equity are not recognised.The acquiree’s identifiable assets, liabilities and contingent liabilities thatmeet the conditions for recognition under IFRS 3 Business Combinations,are recognised at their fair value at the date of acquisition, except:• deferred taxation assets or liabilities, which are recognised andmeasured in accordance with International Accounting Standard(IAS) 12 Income Taxes, and liabilities or assets related to employeebenefit arrangements, which are recognised and measured inaccordance with IAS 19 Employee Benefits;• liabilities or equity instruments that relate to the replacement, bythe group, of an acquiree’s share-based payment awards, which aremeasured in accordance with IFRS 2 Share-based Payments; and• assets (or disposal groups) that are classified as held for sale in accordancewith IFRS 5 Non-current Assets Held for Sale and DiscontinuedOperations, which are measured in accordance with that standard.If the initial accounting for a business combination is incomplete by theend of the reporting period in which the combination occurs, the groupreports provisional amounts for the items for which the accountingis incomplete. Where provisional amounts were reported, these areadjusted during the measurement period (see below). Additional assets orliabilities are recognised to reflect any new information obtained aboutthe facts and circumstances that existed at the date of acquisition, which,if known, would have affected the amounts recognised on that date.The measurement period is the period from the date of acquisition tothe date the group receives complete information about the facts andcircumstances that existed at the acquisition date. This measurementperiod is subject to a maximum of one year after the acquisition date.Where a business combination is achieved in stages the group’s previouslyheld interests in the acquired entity are remeasured to fair value at theacquisition date on the date the group attains control, and the resultinggain or loss, if any, is recognised in profit or loss. Amounts arising frominterests in the acquiree prior to the acquisition date that have previouslybeen recognised in other comprehensive income are reclassified to profitor loss, where such treatment would be appropriate if that interest weredisposed of.Non-controlling interests in the net assets of consolidated subsidiariesare identified separately from the group’s equity therein. The interest ofnon-controlling shareholders is initially measured either at fair value orat the non-controlling interest’s proportionate share of the acquiree’sidentifiable net assets. The choice of measurement basis is made on anacquisition-by-acquisition basis. Subsequent to the acquisition, noncontrollinginterests consist of the amount attributed to such interests atinitial recognition and the non-controlling interest’s share of changes inequity since the date of the combination.The difference between the proceeds from the disposal of a subsidiary,the fair value of any retained investment and its carrying amount atthe date of disposal, including the cumulative amount of any exchangedifferences recognised in the statement of changes in equity that relateto the subsidiary, is recognised as a gain or loss on the disposal of thesubsidiary in the group profit or loss for the period.All changes in the group’s interest in a subsidiary that do not result ina loss of control are accounted for as equity transactions (transactionswith owners). Any difference between the amount by which the noncontrollinginterests are increased or decreased and the fair value ofthe consideration paid or received is recognised directly in equity andattributed to the group.This accounting policy has been adopted for all transactions subsequentto 1 January 2009. The accounting treatment for prior-period transactionshas not been restated.