Annual Report 2012, PDF - Axiata Group Berhad - Investor Relations

NOTES TO THEFINANCIAL STATEMENTSFOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2012 (CONTINUED)3. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)(a) Economic entities in the Group (continued)(ii) Changes in ownership interests in subsidiaries without change of controlTransactions with non-controlling interests that do not result in loss of control are accounted for asequity transactions – that is, as transactions with the owners in their capacity as owners. The differencebetween fair value of any consideration paid and the relevant share acquired of the carrying value ofnet assets of the subsidiary is recorded in equity. Gains or losses on disposals to non-controllinginterests are also recorded in equity.(iii) Disposal of subsidiariesWhen the Group ceases to have control any retained interest in the entity is re-measured to its fairvalue at the date when control is lost, with the change in carrying amount recognised in consolidatedprofit or loss. The fair value is the initial carrying amount for the purposes of subsequently accountingfor the retained interest as an associate, a jointly controlled entity or financial asset. In addition, anyamounts previously recognised in other comprehensive income in respect of that subsidiary areaccounted for as if the Group had directly disposed of the related assets or liabilities. This may meanthat amounts previously recognised in consolidated other comprehensive income are reclassified toconsolidated profit or loss.(iv) Jointly controlled entitiesJointly controlled entities are companies, partnerships or other entities over which there is contractuallyagreed sharing of control by the Group with one or more parties where the strategic financial andoperation decisions relating to the entity requires unanimous consent of the parties sharing control.The Group’s interest in jointly controlled entities is accounted for in the consolidated financialstatements using the equity method as stated in Note 3(a)(v) to the financial statements. Wherenecessary, in applying the equity method, adjustments are made to the financial statements of jointlycontrolled entities to ensure consistency of the accounting policies with those of the Group.The Group recognises the portion of gains or losses on the sale of assets by the Group to the jointlycontrolled entities that is attributable to the other venturers. The Group does not recognise its shareof profits or losses from the jointly controlled entities that result from the purchase of assets by theGroup from the jointly controlled entities until it resells the assets to an independent party. However,a loss on the transaction is recognised immediately if the loss provides evidence of a reduction in thenet realisable value of current assets or an impairment loss.The Group determines at each reporting date whether there is any objective evidence that theinvestment in the jointly controlled entity is impaired. If this is the case, the Group calculates theamount of impairment as the difference between the recoverable amount of the jointly controlledentity and its carrying value and recognises the difference in the consolidated profit or loss.180