80
ASIAMEDIAGROUPBERHAD
(813137-V)
Notes to theFinancial Statements
(Cont’d)
4) SIGNIFICANTACCOUNTINGPOLICIES
(Cont’d)
g) Subsidiaries andBasisof Consolidation
Theconsolidatedfinancial statementscomprise thefinancial statementsof theCompanyand
itssubsidiariesasat the reportingdate.Thefinancial statementsof thesubsidiariesused in
thepreparationof theconsolidatedfinancial statementsareprepared for thesame reporting
date as theCompany. Consistent accounting policies are applied for like transactions and
events in similar circumstances.
TheCompany controls an investee if and only if theCompany has all the following:
-
Power over the investee (i.e existing rights that give it the current ability to direct the
relevant activities of the investee);
-
Exposure, or rights, to variable returns from its investment with the investee; and
-
Theability to use its power over the investee toaffect its returns.
When theCompanyhas less thanamajorityof thevoting rightsofan investee, theCompany
considers the following inassessingwhetherornot theCompany’svoting rights inan investee
are sufficient to give it power over the investee:
-
The sizeof theCompany’s holdingof voting rights relative to the sizeanddispersion
of holdings of the other vote holders;
-
Potential voting rights heldby theCompany, other vote holders or other parties;
-
Rights arising from other contractual arrangements; and
-
Any additional facts and circumstances that indicate that theCompany has, or does
not have, the current ability to direct the relevant activities at the time that decisions
need to bemade, including voting patterns at previous shareholders’meeting.
Subsidiaries are consolidatedwhen theCompany obtains control over the subsidiary and
ceaseswhen theCompany lossescontrol of thesubsidiary.All intra-groupbalances, income
and expenses and unrealised gains and losses resulting from intra-group transactions are
eliminated in full.
Lossesof subsidiariesareattributable to thenon-controlling interestseven if that results in
a deficit balance.
Changes in theGroup’s ownership interests in subsidiaries that do not result in theGroup
losing control over the subsidiaries are accounted for as equity transactions. The carrying
amountsof theGroup’s interest and thenon-controlling interestsareadjusted to reflect the
changes in their relative interests in thesubsidiaries. The resultingdifference is recognised
directly in equity andattributed toowners of theCompany.
