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2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont’d)
BASIS OF CONSOLIDATION (Cont’d)
Non-controlling interests in subsidiaries are identified separately from the Group’s equity therein. The interest of
non-controlling shareholders may be initially measured (at date of original business combination) either at fair value or
at the non-controlling interests’ proportionate share of the fair value of the acquiree’s identifiable net assets. The choice
of measurement basis is made on an acquisition-by-acquisition basis. Subsequent to acquisition, the carrying amount of
non-controlling interests is the amount of those interests at initial recognition plus the non-controlling interests’ share of
subsequent changes in equity. Total comprehensive income is attributed to non-controlling interests even if this results
in the non-controlling interests having a deficit balance.
Changes in the Group’s interest in a subsidiary that do not result in a loss of control are accounted for as equity
transactions. The carrying amounts of the Group’s interests and the non-controlling interests are adjusted to reflect the
changes in their relative interests in the subsidiary. 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 Co-operative.
When the Group loses control of a subsidiary, the profit or loss on disposal 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. Amounts previously recognised in other comprehensive income in relation to the subsidiary
are accounted for (i.e. reclassified to profit or loss or transferred directly to retained earnings) in the same manner
as would be required if the relevant assets or liabilities were disposed of. 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 FRS 39 Financial Instruments: Recognition and Measurement or, when applicable, the cost on initial
recognition of an investment in an associate or jointly controlled entity.
In the Co-operative’s financial statements, investments in subsidiaries, associates and jointly controlled entity are carried
at cost less any impairment in net recoverable value that has been recognised in the profit or loss.
NOTES TO FINANCIAL STATEMENTS
March 31, 2013
