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2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont’d)
INTERESTS IN JOINT VENTURES (Cont’d)
Joint venture arrangements that involve the establishment of a separate entity in which each venturer has an interest are
referred to as jointly controlled entities. The Group and the Co-operative reports its interests in jointly controlled entities
using proportionate consolidation, except when the investment is classified as held for sale, in which case it is accounted
for under FRS 105 Non-current Assets Held for Sale and Discontinued Operations. The Group’s share of the assets,
liabilities, income and expenses of jointly controlled entities are combined with the equivalent items in the consolidated
financial statements on a line-by-line basis.
The Group and the Co-operative account for their interests in the jointly controlled entity/asset using the most recently
available audited financial statements or the unaudited financial statements of the jointly controlled entity/assets.
Any difference between the unaudited financial statements and the audited financial statements obtained subsequently
are adjusted in the following financial year.
Any goodwill arising on the acquisition of the Group’s interest in a jointly controlled entity/asset is accounted for in
accordance with the Group’s accounting policy for goodwill arising on the acquisition of an associate.
Where the Group transacts with its jointly controlled entity/assets, unrealised profits and losses are eliminated to the
extent of the Group’s interest in the joint venture.
GOODWILL
- Goodwill arising in a business combination is recognised as an asset at the date that control is acquired
(the acquisition date). Goodwill is measured as the excess of the sum of the consideration transferred, the amount of
any non-controlling interest in the acquiree and the fair value of the acquirer’s previously held equity interest (if any)
in the entity over net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed.
If, after reassessment, the Group’s interest in the fair value of the acquiree’s identifiable net assets exceeds the sum
of the consideration transferred, the amount of any non-controlling interest in the acquiree and the fair value of the
acquirer’s previously held equity interest in the acquiree (if any), the excess is recognised immediately in profit or loss as
a bargain purchase gain.
NOTES TO FINANCIAL STATEMENTS
March 31, 2013
