Notes to the Financial Statements - Cahaya Mata Sarawak Bhd

Notes to the Financial Statements
For the fi nancial year ended 31 December 2011
2. Summary of signifi cant accounting policies (contd.)
2.4 Basis of consolidation (contd.)
Any excess of the sum of the fair value of the consideration transferred in the business combination, the
amount of non-controlling interest in the acquiree (if any), and the fair value of the Group’s previously
held equity interest in the acquiree (if any), over the net fair value of the acquiree’s identifi able assets and
liabilities is recorded as goodwill in the statements of fi nancial position. The accounting policy for goodwill
is set out in Note 2.11(a). In instances where the latter amount exceeds the former, the excess is recognised
as a gain on bargain purchase in profi t or loss on the acquisition date.
Subsidiaries are consolidated from the date of acquisition, being the date on which the Group obtains
control, and continue to be consolidated until the date that such control ceases.
Acquisitions of subsidiaries prior to 1 January 2006 which met the merger criteria as set out in MASB 21:
Business Combinations were accounted for using merger accounting principles. When the merger method
is used, the cost of investment in the Company’s books is recorded at cost which is the fair value of the
investment and the fair value of shares acquired is treated as merger reserve or merger defi cit. The results
of the companies being merged are included as if the merger had been effected throughout the current
and previous fi nancial years.
2.5 Transactions with non-controlling interests
Non-controlling interest represents the equity in subsidiaries not attributable, directly or indirectly, to owners
of the Company, and is presented separately in the Group’s statement of comprehensive income and within
equity in the Group’s statement of fi nancial position, separately from equity attributable to owners of the
Company.
Changes in the Company owners’ ownership interest in a subsidiary that do not result in a loss of control
are accounted for as equity transactions. In such circumstances, the carrying amounts of the controlling
and non-controlling interests are adjusted to refl ect the changes in their relative interests in the subsidiary.
Any difference between the amount by which the non-controlling interest is adjusted and the fair value of
the consideration paid or received is recognised directly in equity and attributed to owners of the Company.
2.6 Foreign currency
(a) Functional and presentation currency
The individual fi nancial statements of each entity in the Group are measured using the currency
of the primary economic environment in which the entity operates (“the functional currency”).
The consolidated fi nancial statements are presented in Ringgit Malaysia (RM), which is also the
Company’s functional currency.
(b) Foreign currency transactions
Transactions in foreign currencies are measured in the respective functional currencies of the
Company and its subsidiaries and are recorded on initial recognition in the functional currencies at
exchange rates approximating those ruling at the transaction dates. Monetary assets and liabilities
denominated in foreign currencies are translated at the rate of exchange ruling at the reporting
date. Non-monetary items denominated in foreign currencies that are measured at historical cost are
translated using the exchange rates as at the dates of the initial transactions. Non-monetary items
denominated in foreign currencies measured at fair value are translated using the exchange rates at
the date when the fair value was determined.
Annual Report 2011 85