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COSCO Corporation (Singapore) Limited
Annual Report 2015
NOTES TO THE
FINANCIAL STATEMENTS
For the financial year ended 31 December 2015
Financial Statements
2.
Significant accounting policies
(continued)
2.2 Revenue recognition
(continued)
(d)
Interest income
Interest income is recognised using the effective interest method.
(e)
Dividend income
Dividend income is recognised when the right to receive payment is established.
2.3 Group accounting
(a)
Subsidiaries
(i)
Consolidation
Subsidiaries are all entities (including structured entities) over which the Group has control.
The Group controls an entity when the Group is exposed to, or has rights to, variable
returns from its involvement with the entity and has the ability to affect those returns
through its power over the entity. Subsidiaries are fully consolidated from the date on which
control is transferred to the Group. They are deconsolidated from the date on that control
ceases.
In preparing the consolidated financial statements, transactions, balances and unrealised
gains on transactions between group entities are eliminated. Unrealised losses are also
eliminated but are considered an impairment indicator of the asset transferred. Accounting
policies of subsidiaries have been changed where necessary to ensure consistency with the
policies adopted by the Group.
Non-controlling interests comprise the portion of a subsidiary’s net results of operations and
its net assets, which is attributable to the interests that are not owned directly or indirectly
by the equity holders of the Company. They are shown separately in the consolidated
statement of comprehensive income, statement of changes in equity, and balance sheet.
Total comprehensive income is attributed to the non-controlling interests based on their
respective interests in a subsidiary, even if this results in the non-controlling interests having
a deficit balance.
(ii)
Acquisitions
The acquisition method of accounting is used to account for business combinations
entered into by the Group.
The consideration transferred for the acquisition of a subsidiary or business comprises the
fair value of the assets transferred, the liabilities incurred and the equity interests issued
by the Group. The consideration transferred also includes any contingent consideration
arrangement and any pre-existing equity interest in the subsidiary measured at their fair
values at the acquisition date.
