Page 81 - 12Mar_Sabana AR 2011 Cover.pdf, page 1 @ Preflight ( 12Mar_S

ANNUAL REPORT 2011
(a) Basis of consolidation
(i) Business combinations
Business combinations are accounted for using the acquisition method as at the acqui
date on which control is transferred to the Group. Control is the power to govern the
policies of an entity so as to obtain benefts from its activities. In assessing control
consideration potential voting rights that are currently exercisable.
The consideration transferred does not include amounts related to the settlement of pr
Such amounts are generally recognised in the Statement of Total Return.
Costs related to the acquisition, other than those associated with the issue of debt or e
Group incurs in connection with a business combination are expensed as incurred.
(ii) Subsidiaries
Subsidiaries are entities controlled by the Group. The fnancial statements of subsidia
consolidated fnancial statements from the date that control commences until the date
The accounting policies of subsidiaries have been changed when necessary to align
adopted by the Group. Losses applicable to the non-controlling interests in a subsidi
non-controlling interests even if doing so causes the non-controlling interests to have a
(iii) Loss of control
Upon the loss of control, the Group derecognises the assets and liabilities of the subsidi
interests and the other components of equity related to the subsidiary. Any surplus or d
of control is recognised in proft or loss. If the Group retains any interest in the previo
interest is measured at fair value at the date that control is lost. Subsequently, it is acc
accounted investee or as an available-for-sale fnancial asset depending on the level of
(iv) Transactions eliminated on consolidation
Intra-group balances and transactions, and any unrealised income and expenses
transactions, are eliminated in preparing the consolidated fnancial statements.
(v) Accounting for subsidiaries
Investments in subsidiaries are stated in the Trust’s statement of fnancial position at
impairment losses.
Sabana AR 2011 Financial V9.indd 79