4) SIGNIFICANT ACCOUNTING POLICIES
(Cont’d)
g) Subsidiaries and Basis of Consolidation
(Cont’d)
The Company controls an investee if and only if the Company 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
-
The ability to use its power over the investee to affect its returns.
When the Company has less than a majority of the voting rights of an investee, the Company
considers the following in assessing whether or not the Company’s voting rights in an
investee are sufficient to give it power over the investee:
-
The size of the Company’s holding of voting rights relative to the size and dispersion
of holdings of the other vote holders;
-
Potential voting rights held by the Company, other vote holders or other parties;
-
Rights arising from other contractual arrangements; and
-
Any additional facts and circumstances that indicate that the Company has, or does
not have, the current ability to direct the relevant activities at the time that decisions
need to be made, including voting patterns at previous shareholders’ meeting.
Subsidiaries are fully consolidated from the date on which control is transferred to the
Group. They are deconsolidated from the date that control ceases. Specifically, income
and expenses of a subsidiary acquired or disposed of during the year are included in the
consolidated statement of profit or loss and other comprehensive income from the date
the Group gains control until the date when the Group ceases to control the subsidiary.
Profit or loss and each component of other comprehensive income are attributed to the
owners of the Company and to the non-controlling interests. Total comprehensive income
of subsidiaries is attributed to the owners of the Group and to the non-controlling interests
even if this results in the non-controlling interest having a deficit balance.
When necessary, adjustments are made to the financial statements of subsidiaries to bring
their accounting policies into line with the Group’s accounting policies. Inter-company
transactions, balances, income and expenses on transactions between Group companies
are eliminated.
Asia Media Group Berhad Annual Report 2014
88
NOTES TO THE FINANCIAL STATEMENTS
(Cont’d)
