Maxis Berhad
Annual Report 2015
page
88
Notes to the Financial Statements
31 December 2015
3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(a) Basis of consolidation (continued)
(i)
Subsidiaries (continued)
The Group applies the acquisition method to account for business combinations. The consideration transferred for the acquisition
of a subsidiary is the fair values of the assets transferred, the liabilities incurred to the former owners of the acquiree and the
equity interests issued by the Group. The consideration transferred includes the fair value of any asset or liability resulting from a
contingent consideration arrangement and fair value of any pre-existing equity interest in the subsidiary. Identifiable assets acquired
and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition
date. The Group recognises any non-controlling interest in the acquiree on an acquisition-by-acquisition basis, either at fair value or
at the non-controlling interest’s proportionate share of the recognised amounts of acquiree’s identifiable net assets.
Acquisition-related costs are expensed as incurred.
If the business combination is achieved in stages, the carrying value of the acquirer’s previously held equity interest in the acquiree
is re-measured to fair value at the acquisition date and any gains or losses arising from such re-measurement are recognised in the
statement of profit or loss.
Any contingent consideration to be transferred by the Group is recognised at fair value at the acquisition date. Subsequent changes
to the fair value of the contingent consideration that is deemed to be an asset or liability is recognised in accordance with MFRS 139
in profit or loss. Contingent consideration that is classified as equity is not re-measured, and its subsequent settlement is accounted
for within equity.
Goodwill is initially measured as the excess of the aggregate of 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 fair value of the net
identifiable assets acquired. If the total of consideration transferred, non-controlling interest recognised and previously held interest
measured is less than the fair value of the net assets of the subsidiary acquired, in the case of a bargain purchase, the difference is
recognised directly in the statement of profit or loss. See accounting policy Note 3(d)(ii) on goodwill.
Inter-company transactions, balances and unrealised gains or losses on transactions between Group companies are eliminated.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group.
Non-controlling interests in the results and equity of subsidiaries are shown separately in the consolidated statement of profit or loss,
statement of comprehensive income, statement of changes in equity and statement of financial position respectively.
All earnings and losses of the subsidiary are attributed to the parent and the non-controlling interests, even if the attribution of losses
to the non-controlling interests results in a debit balance in the shareholders’ equity. Profit or loss attributable to non-controlling
interests for prior years is not restated.
(ii)
Changes in ownership interests in subsidiaries without change of control
Transactions with non-controlling interests that do not result in loss of control are accounted for as transactions with equity owners
of the Group. A change in ownership interest results in an adjustment between the carrying amounts of the controlling and non-
controlling interests to reflect their relative interests in the subsidiary. Any difference between the amount of the adjustment to non-
controlling interests and any consideration paid or received is recognised in equity attributable to owners of the Group.
