BAKERTECHNOLOGYLIMITED
ANNUALREPORT2013
84
Notes to the
Financial Statements
for the financial year ended 31December 2013
2.
Summaryof significantaccounting policies (cont’d)
2.3
Basis of consolidation andbusiness combination
(a)
Basis of consolidation
Basis of consolidation from 1 January 2010
The consolidated financial statements comprise the financial statements of the Company and its subsidiaries as at the
end of the reporting period. The financial statements of the subsidiaries used in the preparation of the consolidated
financial statements are prepared for the same reporting date as the Company. Consistent accounting policies are
applied to like transactions and events in similar circumstances.
All intra-group balances, income and expenses and unrealised gains and losses resulting from intra-group transactions
and dividends are eliminated in full.
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.
Losseswithin a subsidiary are attributed to the non-controlling interest even if that results in a deficit balance.
A change in theownership interest of a subsidiary,without a loss of control, is accounted for as an equity transaction. If
theGroup loses control over a subsidiary, it:
– De-recognises the assets (including goodwill) and liabilities of the subsidiary at their carrying amounts at the date
when controls is lost;
– De-recognises the carrying amount of any non-controlling interest;
– De-recognises the cumulative translation differences recorded in equity;
– Recognises the fair value of the consideration received;
– Recognises the fair value of any investment retained;
– Recognises any surplus or deficit in profit or loss;
– Re-classifies the Group’s share of components previously recognised in other comprehensive income to profit or
loss or retained earnings, as appropriate.
Basis of consolidationprior to 1 January 2010
Certain of the above-mentioned requirementswere applied on a prospective basis. The following differences, however,
are carried forward in certain instances from the previous basis of consolidation:
– Acquisition of non-controlling interests, prior to 1 January 2010, were accounted for using the parent entity
extensionmethod, whereby, the difference between the consideration and the book value of the share of the net
assets acquiredwere recognised ingoodwill.
– Losses incurred by theGroupwere attributed to the non-controlling interest until the balancewas reduced to nil.
Any further losses were attributed to the Group, unless the non-controlling interest had a binding obligation to
cover these. Losses prior to1 January 2010werenot reallocatedbetweennon-controlling interest and theowners
of theCompany.
– Upon loss of control, theGroupaccounted for the investment retainedat its proportionate shareof net asset value
at the date control was lost. The carrying value of such investments as at 1 January 2010 have not been restated.
