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Baker Technology LimitedAnnual Report 2014
2.
Summary of significant accountingpolicies (cont’d)
2.3
Basis of consolidation andbusiness combination
(a)
Basis of consolidation
TheconsolidatedfinancialstatementscomprisethefinancialstatementsoftheCompanyanditssubsidiaries
asattheendof thereportingperiod.Thefinancialstatementsof thesubsidiariesused inthepreparationof
theconsolidatedfinancialstatementsarepreparedforthesamereportingdateastheCompany.Consistent
accountingpoliciesareapplied to like transactionsandevents insimilarcircumstances.
All intra-group balances, income and expenses and unrealised gains and losses resulting from
intra-group transactions anddividends areeliminated in full.
Subsidiaries are consolidated from the date of acquisition, being the date on which the Group
obtains control, and continue tobe consolidateduntil thedate that such control ceases.
Losseswithinasubsidiaryareattributedtothenon-controlling interesteven if thatresults inadeficitbalance.
A change in theownership interest of a subsidiary, without a lossof 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 thedatewhen controls is lost;
–
De-recognises the carrying amount of any non-controlling interest;
–
De-recognises the cumulative translationdifferences recorded inequity;
–
Recognises the fair valueof the consideration received;
–
Recognises the fair valueof any investment retained;
–
Recognises any surplus or deficit inprofit or loss;
–
Re-classifies the Group’s share of components previously recognised in other
comprehensive income toprofit or loss or retainedearnings, as appropriate.
(b)
Business combinations andgoodwill
Business combinations are accounted for by applying the acquisitionmethod. Identifiable assets
acquiredand liabilitiesassumed inabusinesscombinationaremeasured initiallyat their fair values
at the acquisition date. Acquisition-related costs are recognised as expenses in the periods in
which the costs are incurred and the services are received.
NOTES TO THE
FINANCIAL STATEMENTS
For the financial year ended 31December 2014
