TUNG LOK RESTAURANTS (2000) LTD / Annual Report
2016
48
Notes to the financial statements
For the financial year ended 31 March 2016
2.
Summary of significant accounting policies (cont’d)
2.4
Basis of consolidation and business combinations (cont’d)
(a)
Basis of consolidation (cont’d)
A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity
transaction. If the Group 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 control 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.
(b)
Business combinations and goodwill
Business combinations are accounted for by applying the acquisition method. Identifiable assets acquired and
liabilities assumed in a business combination are measured initially at 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.
Any contingent consideration to be transferred by the acquirer will be recognised at fair value at the acquisition
date. Subsequent changes to the fair value of the contingent consideration which is deemed to be an asset or
liability, will be recognised in profit or loss.
The Group elects for each individual business combination, whether non-controlling interest in the acquiree
(if any), that are present ownership interests and entitle their holders to a proportionate share of net assets in
the event of liquidation, is recognised on the acquisition date at fair value, or at the non-controlling interest’s
proportionate share of the acquiree’s identifiable net assets. Other components of non-controlling interests are
measured at their acquisition date fair value, unless another measurement basis is required by another FRS.
