52
Notes to Financial Statements
December 31, 2014
2. Summary of Significant Accounting Policies (cont’d)
BASIS OF CONSOLIDATION
The consolidated financial statements incorporate the financial statements of the Co-operative and entities controlled
by the Co-operative and its subsidiaries. Control is achieved when the Co-operative:
• Has power over the investee;
• Is exposed, or has rights, to variable returns from its involvement with the investee; and
• Has the ability to use its power to affect its returns.
The Co-operative reassesses whether or not it controls an investee if facts and circumstances indicate that there are
changes to one or more of the three elements of control listed above.
When the Co-operative has less than a majority of the voting rights of an investee, it has power over the investee when
the voting rights are sufficient to give it the practical ability to direct the relevant activities of the investee unilaterally. The
Co-operative considers all relevant facts and circumstances in assessing whether or not the Co-operative voting rights
in an investee are sufficient to give it power, including:
• The size of the Co-operative’s holding of voting rights relative to the size and dispersion of holdings of the other vote
holders;
• Potential voting rights held by the Co-operative, other vote holders or other parties;
• Rights arising from other contractual arrangements; and
• Any additional facts and circumstances that indicate that the Co-operative has, or does not have, the current ability
to direct the relevant activities at the time that decisions need to be made, including voting patterns at previous
shareholders’ meetings.
Consolidation of a subsidiary begins when the Co-operative obtains control over the subsidiary and ceases when the
Co-operative loses control of the subsidiary. Specifically, income and expenses of a subsidiary acquired or disposed of
during the year are included in the consolidated statement of profit or loss and other comprehensive income from the
date the Co-operative gains control until the date when the Co-operative ceases to control the subsidiary.
Profit or loss and each component of other comprehensive income are attributed to the owners of the Co-operative
and to the non-controlling interests. Total comprehensive income of subsidiaries is attributed to the owners of the Co-
operative and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.
When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies in
line with the Group’s accounting policies.
Changes in theGroup’s ownership interests in subsidiaries that donot result in theGroup losing control over the subsidiaries
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 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 Co-operative.
