. 8 6
NOTESTOTHE
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2017
BAKER
TECHNOLOGY
L IMI TED
THE BE ST
I N US
2.3
Basisof consolidationandbusinesscombinations
(a)
Basisof consolidation
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 thepreparationof theconsolidated financial statements areprepared for the same reportingdate
as theCompany. Consistent accountingpolicies areapplied to like transactions andevents in similar
circumstances.
All intra-groupbalances, income andexpenses andunrealisedgains and losses resulting from intra-
group transactions anddividends areeliminated in full.
Subsidiariesareconsolidated from thedateof acquisition, being thedateonwhich theGroupobtains
control, andcontinue tobeconsolidateduntil thedate that suchcontrol ceases.
Losses within a subsidiary are attributed to the non-controlling interest even if that results in a
deficit balance.
A change in the ownership 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 (includinggoodwill) and liabilities of the subsidiary at their carrying
amounts at thedatewhencontrol is lost;
– De-recognises thecarrying amount of anynon-controlling interest;
– De-recognises thecumulative translationdifferences recorded inequity;
– Recognises the fair valueof theconsideration received;
– Recognises the fair valueof any investment retained;
– Recognises any surplus or deficit inprofit or loss;
– Re-classifies theGroup’sshareofcomponentspreviously recognised inothercomprehensive
income toprofit or loss or retainedearnings, as appropriate.
