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BLUE LABEL INTEGRATED ANNUAL REPORT 2014
NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS
CONTINUED
For the year ended 31 May 2014
1.
SIGNIFICANT ACCOUNTING POLICIES (continued)
Annual improvements project (continued)
Amendment to IFRS 13 – Fair Value Measurement
The IASB has amended the basis for conclusions of IFRS 13 to clarify that it did not intend to remove the
ability to measure short-term receivables and payables at invoice amounts.
Amendment to IAS 16 – Property, Plant and Equipment and IAS 38 – Intangible Assets
Both standards are amended to clarify how the gross carrying amount and the accumulated depreciation are
treated where an entity uses the revaluation model.
The carrying amount of the asset is restated to the revalued amount.
The split between gross carrying amount and accumulated depreciation is treated in one of the following ways:
•
•
either the gross carrying amount is restated in a manner consistent with the revaluation of the carrying
amount, and the accumulated depreciation is adjusted to equal the difference between the gross carrying
amount and the carrying amount after taking into account accumulated impairment losses; or
•
•
the accumulated depreciation is eliminated against the gross carrying amount.
Amendment to IAS 24 – Related Party Disclosures
The standard is amended to include, as a related party, an entity that provides key management personnel
services to the reporting entity or to the parent of the reporting entity (the management entity).
Management is currently considering the effect of the changes.
Basis of consolidation
Subsidiaries
Subsidiaries are all entities (including structured entities) over which the Group has control. The Group
controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with
the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully
consolidated from the date on which control is transferred to the Group. They are deconsolidated from the
date that control ceases.
The Group applies the acquisition method to account for business combinations. The consideration
transferred for the acquisition of a subsidiary is the fair value 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. 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 acquisition date carrying value of the acquirer’s
previously held equity interest in the acquiree is remeasured to fair value at the acquisition date; any gains or
losses arising from such remeasurement are recognised in profit or loss.