Page 72

Notes to Consolidated Financial Statements - 27 The Group recognizes in relation to its interest in a joint operation: ƒ ƒ ƒ ƒ ƒ

its assets, including its share of any assets held jointly; its liabilities, including its share of any liabilities incurred jointly; its revenue from the sale of its share of the output arising from the joint operation; its share of the revenue from the sale of the output by the joint operation; and its expenses, including its share of any expenses incurred jointly.

Investments in Associates The Group’s investments in its associates are accounted for using the equity method. An associate is an entity in which the Group has significant influence. Under the equity method, investments in associate are carried in the consolidated balance sheet at cost plus post acquisition changes in the Group’s share of net assets of the associates. Goodwill relating to an associate is included in the carrying amount of the investment and is neither amortized nor individually tested for impairment. The consolidated statement of comprehensive income reflects the share of the results of operations of the associates. Where there has been a change recognized directly in the equity of the associates, the Group recognizes its share of any changes and discloses this, when applicable, in the consolidated statement of changes in equity. Unrealized gains and losses resulting from transactions between the Group and the associates are eliminated to the extent of the interest in the associates. The share in net income of the associates is shown as “Equity in net income of associates” account in the consolidated statement of comprehensive income. This is the income attributable to equity holders of the associates and therefore is profit after tax and non-controlling interests in the subsidiaries of the associates. The financial statements of the associates are prepared for the same reporting period as the Group. Where necessary, adjustments are made to bring the accounting policies in line with those of the Group. Upon loss of significant influence over an associate, the Group measures and recognizes any retaining investment at its fair value. Any difference between the carrying amount of the associate upon loss of significant influence and the fair value of the retaining investment and proceeds from disposal is recognized in profit or loss. Investment Properties Investment properties comprise completed property and property under construction or re-development held to earn rentals or for capital appreciation or both. Investment properties are measured initially at cost, including transaction costs. The carrying amount includes the cost of replacing part of an existing investment properties at the time that cost is incurred and if the recognition criteria are met, and excludes the costs of day-to-day servicing of an investment properties. Subsequent to initial recognition, investment properties are stated at fair value, which reflects market conditions at the balance sheet date. Gains and losses arising from changes in the fair values of investment properties are recognized in profit or loss under “Gain on fair value change of investment properties” account in the year in which they arise.

72

*SGVFS003458*

Profile for Alphaland Corporate Communications

Alphaland Annual Report 2013  

Alphaland Annual Report 2013  

Profile for alphaland
Advertisement