2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
2.4
Basis of consolidation and business combinations (continued)
(b)
Business combinations (continued)
The Group elects for each individual business combination, whether non-controlling interest
in the acquiree (if any), that are present ownership interests and entitle their holders to a
proportionate share of net assets in the event of liquidation, is recognised on the acquisition
date at fair value, or at the non-controlling interest’s proportionate share of the acquiree’s
identifiable net assets. Other components of non-controlling interests are measured at their
acquisition date fair value, unless another measurement basis is required by another FRS.
Any excess of the sum of the fair value of the consideration transferred in the business
combination, the amount of non-controlling interest in the acquiree (if any), and the fair value
of the Group’s previously held equity interest in the acquiree (if any), over the net fair value
of the acquiree’s identifiable assets and liabilities is recorded as goodwill. In instances where
the latter amount exceeds the former, the excess is recognised as gain on bargain purchase
in profit or loss on the acquisition date.
Goodwill is initially measured at cost. Following initial recognition, goodwill is measured at
cost less any accumulated impairment losses.
2.5
Transactions with non-controlling interests
Non-controlling interest represents the equity in subsidiaries not attributable, directly or indirectly,
to owners of the Company.
Changes in the Company’s ownership interest in a subsidiary that do not result in a loss of control are
accounted for as equity transactions. In such circumstances, the carrying amounts of the controlling
and non-controlling interests are adjusted to reflect the changes in their relative interests in the
subsidiary. Any difference between the amount by which the non-controlling interest is adjusted and
the fair value of the consideration paid or received is recognised directly in equity and attributed to
owners of the Company.
57
HG METAL MANUFACTURING LIMITED
ANNUAL REPORT 2015
NOTES TO THE
FINANCIAL STATEMENTS
For the financial year ended 31 December 2015
