88
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)
2.3 Group accounting
(continued)
(a)
Subsidiaries
(continued)
(ii)
Acquisitions
(continued)
Acquisition-related costs are expensed as incurred.
Identifiable assets acquired and liabilities and contingent liabilities assumed in a business
combination are, with limited exceptions, measured initially at their fair values at the
acquisition date.
On an acquisition-by-acquisition basis, the Group recognises any non-controlling interest in
the acquiree at the date of acquisition either at fair value or at the non-controlling interest’s
proportionate share of the acquiree’s identifiable net assets.
The excess of (a) the consideration transferred, the amount of any non-controlling
interest in the acquiree and the acquisition-date fair value of any previous equity interest
in the acquiree over the (b) fair value of the identifiable net assets acquired is recorded
as goodwill. Please refer to Note 2.5 “Intangible assets - Goodwill” for the subsequent
accounting policy on goodwill.
(iii)
Disposals
When a change in the Group’s ownership interest in a subsidiary results in a loss of control
over the subsidiary, the assets and liabilities of the subsidiary including any goodwill are
derecognised. Amounts previously recognised in other comprehensive income in respect of
that entity are also reclassified to profit or loss or transferred directly to retained earnings if
required by a specific Standard.
Any retained equity interest in the entity is remeasured at fair value. The difference between
the carrying amount of the retained interest at the date when control is lost and its fair value
is recognised in profit or loss.
Please refer to Note 2.9 “Investments in subsidiaries and associated companies” for the
accounting policy on investments in subsidiaries in the separate financial statements of the
Company.
(b)
Transactions with non-controlling interests
Changes in the Group’s ownership interest in a subsidiary that do not result in a loss of control
over the subsidiary are accounted for as transactions with equity owners of the Company. Any
difference between the change in the carrying amounts of the non-controlling interest and the fair
value of the consideration paid or received is recognised within equity attributable to the equity
holders of the Company.
