4) SIGNIFICANT ACCOUNTING POLICIES
(Cont’d)
g) Subsidiaries and Basis of Consolidation
(Cont’d)
Changes in the Group’s ownership interests in existing subsidiaries
Changes in the Group’s ownership interest in subsidiaries that do not result in the Group
losing control are accounted for as equity transactions. The carrying amounts of the Group’s
interests and the non-controlling interest are adjusted to reflect the changes in their relative
interest in subsidiaries. Any difference between the amount by which the non-controlling
interests are adjusted and the fair value of the consideration paid or received is recognised
directly in equity and attributed to owners of the Company.
Disposal of Subsidiaries
When the Group loses control of a subsidiary, a gain or loss is recognised in profit or
loss and is calculated as the difference between (i) the aggregate of the fair value of the
consideration received and the fair value of any retained interest and (ii) the previous
carrying amount of the assets (including goodwill), and liabilities of the subsidiary and
any non-controlling interests. All amounts previously recognised in other comprehensive
income in relation to that subsidiary are accounted for as if the Group had directly disposed
of the relevant assets or liabilities of the subsidiary (i.e. reclassified to profit or loss or
transferred to another category of equity as specified/permitted by applicable MFRSs).
The fair value of any investment retained in the former subsidiary at the date when control
is lost is regarded as the fair value on initial recognition for subsequent accounting under
MFRS 139 Financial Instruments: Recognition and Measurement or, when applicable, the
cost on initial recognition of an investment in an associate or joint venture.
Transactions with Non-Controlling Interest
Non-Controlling interest represents the portion of profit or loss and net assets in subsidiaries
not held by the Group and are presented separately in profit or loss of the Group and
within equity in the consolidated statements of financial position, separately from the
parent shareholder’s equity. Transactions with non-controlling interest are accounted
for using the entity concept method, whereby, transactions with non-controlling interests
are accounted for as transactions with owners. On acquisition of non-controlling interest,
the difference between the consideration and book value of the share of the net assets
acquired is recognised directly in equity. Gain or loss on disposal to non-controlling interest
is recognised directly in equity.
h) Investments in Subsidiaries
In the Company’s separate financial statements, investments in subsidiaries are stated at
cost less accumulated impairment losses. On disposal of such investments, the difference
between disposal proceeds and their carrying amounts are recognised in profit or loss.
Asia Media Group Berhad Annual Report 2014
89
NOTES TO THE FINANCIAL STATEMENTS
(Cont’d)
