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ASIA MEDIA GROUP Berhad
Annual Report 2016
72
Notes to the Financial Statements
(continued)
3.
Summary of significant accounting policies (cont’d)
3.1 Basis of consolidation (cont’d)
(b) Business combination
Business combinations are accounted for using the acquisition method from the
acquisition date, which is the date on which control is transferred to the Group. The
cost of an acquisition is measured as the aggregate of the consideration transferred
measured at acquisition date fair value and the amount of any non-controlling interests
in the acquiree. Acquisition-related costs are expensed as incurred and included in
administrative expenses.
For each business combination, the Group elects whether to measure the non-
controlling interest in the acquiree at fair value or at the proportionate share of the
acquiree’s identifiable net assets. When the Group acquires a business, it assesses
the financial assets and financial liabilities assumed for appropriate classification and
designation in accordance with the contractual terms, economic circumstances and
pertinent conditions as at the acquisition date.
If the business combination is achieved in stages, the previously held equity interest
is remeasured at its acquisition date fair value and any resulting gain or loss is
recognised in profit or loss. It is then considered in the determination of goodwill.
Any contingent consideration to be transferred by the acquirer will be recognised at
fair value at the acquisition date. Contingent consideration classified as an asset or
liability that is a financial instrument and within the scope of MFRS 139 ‘Financial
Instruments: Recognition and Measurement’ (“MFRS 139”) is measured at fair value
with changes in fair value recognised either in profit or loss or as a change to other
comprehensive income. If the contingent consideration is not within the scope of
MFRS 139, it is measured in accordance with the appropriate MFRSs. Contingent
consideration that is classified as equity is not remeasured and subsequent settlement
is accounted for within equity.
(c) Acquisitions of non-controlling interests
Changes in the Company’s ownership interest in a subsidiary that do not result in a
loss of control are accounted for as equity transactions between the Group and its
non-controlling interest holders. Any difference between the amount by which the
non-controlling interests are adjusted and the fair value of the consideration paid or
received are recognised directly in equity and attributable to the equity holders of
the Company.