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2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont’d)
BUSINESS COMBINATIONS (Cont’d)
If the initial accounting for a business combination is incomplete by the end of the reporting period in which the
combination occurs, the Group reports provisional amounts for the items for which the accounting is incomplete.
Those provisional amounts are adjusted during the measurement period (see below), or additional assets or liabilities
are recognised, to reflect new information obtained about facts and circumstances that existed as of the acquisition
date that, if known, would have affected the amounts recognised as of that date.
The measurement period is the period from the date of acquisition to the date the Group obtains complete information
about facts and circumstances that existed as of the acquisition date and is subject to a maximum of one year from
acquisition date.
The accounting policy for initial measurement of non-controlling interests is described above.
FINANCIAL INSTRUMENTS
- Financial assets and financial liabilities are recognised on the Co-operative’s and Group’s
statement of financial position when the Co-operative and the Group becomes a party to the contractual provisions of
the instrument.
Effective interest method
The effective interest method is a method of calculating the amortised cost of a financial instrument and of allocating
interest income or expense over the relevant period. The effective interest rate is the rate that exactly discounts
estimated future cash receipts or payments (including all fees on points paid or received that form an integral part of
the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial
instrument, or where appropriate, a shorter period. Income and expense is recognised on an effective interest rate basis.
Financial assets
All financial assets are recognised and de-recognised on a trade date where the purchase or sale of an investment is
under a contract whose terms require delivery of the investment within the timeframe established by the market
concerned, and are initially measured at fair value plus transaction costs.
Financial assets are classified into the following specified categories: “available-for-sale” financial assets and “loans and
receivables”. The classification is determined based on the nature and purpose of financial assets at the time of initial
recognition. The Group does not have any financial assets classified as “held-to-maturity investments” and “financial
assets at fair value through profit or loss”.
NOTES TO FINANCIAL STATEMENTS
March 31, 2013
