Page 165 - UBP - IR2020

2 3 (a)
FINANCIAL STATEMENTS
Notes to the financial statements
For the year ended June 30 2020
The Group re-assesses whether or not it controls an an an an investee if facts and circumstances indicate that there are changes to one or or more of of of the the three elements of of of control control Consolidation of of of a a a a subsidiary begins when the the Group obtains control control over the the the subsidiary subsidiary and and ceases when the the the Group loses control of of the the the subsidiary subsidiary Assets liabilities income and and expenses of of a a a a a a a a a a subsidiary acquired or disposed of of of during the the year are included in in in fin the the statement statement of of of financial position and statement statement of of of comprehensive income from the the the the the date date the the the the the Group Group gains control control until the the the the the date date the the the the the Group Group ceases to control control the the the the the subsidiary Profit or loss and each component o of of other comprehensive income (OCI) are attributed to the the the equity holders o of of the the the parent of the the the Group and to the the the non-controlling non-controlling interests interests even if this results in in in in in in the the the non-controlling non-controlling interests interests having a a a a deficit balance When necessary adjustments are made to to the the financial statements
of subsidiaries to to bring their accounting policies policies in in in in in line with the Group’s accounting policies policies All intra-group assets and and liabilities equity income expenses and and cash flows relating to transactions between members of the Group are eliminated in in in full on on on on consolidation A change in in the the ownership interest of of a a a a a a a a a subsidiary without a a a a a a a a a loss of of control is accounted for as an an an equity transaction If the the Group loses control over a a subsidiary it:
• Derecognises the the assets (including goodwill) and liabilities of the the subsidiary • Derecognises the carrying amount of any non-controlling interest • Derecognises the cumulative translation differences recorded in equity • Recognises the the fair value of the the consideration received
• Recognises the fair value of any investment retained
• Recognises any surplus or or deficit in statement of o profit or or loss • Reclassifies the the parent’s share of of components previously recognised in in other comprehensive income to statement of of profit or or loss or or retained
earnings as as appropriate as as would be required if the the Group had directly disposed o of the the related assets or liabilities SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Business combinations and goodwill Business combinations are accounted for using the the acquisition acquisition method The cost of an acquisition acquisition is is is measured as as the the aggregate of of the the consideration transferred measured at at at at at acquisition date at at at at at fair value and the the amount of of any non-controlling interest interest in in in in in in the the the the acquiree For each business combination the the the the Group elects whether to measure the the the the non-controlling interest interest in the the the the acquiree acquiree either at at at at fair value or or at at at at the the the the proportionate share of the the the the acquiree’s identifiable net assets Acquisition related costs are expensed as incurred and included in in in in administrative expenses When the the Group acquires a a a a a a a a a a a a a business it it assesses the the financial assets and liabilities assumed for appropriate classification and and designation in in accordance with the the contractual terms economic circumstances and and pertinent conditions as at at the the acquisition date This includes the the separation of embedded derivatives in in host contracts by the the acquiree If the the business combination is is is achieved in in in in stages the the previously held equity interest is is is re-measured at at at its acquisition date fair value and and any resulting gain or or loss loss is is recognised in in in in the the statement of o profit or or loss loss and and other comprehensive income It is then considered in in the the determination of goodwill Goodwill is initially measured at at at cost being the the the the excess of of the the the the aggregate of of the the the the consideration transferred and the the the the amount recognised for non-controlling interests and and any previous interest interest held over the net identifiable assets acquired and and liabilities assumed If the the the the fair value of of the the the the net assets acquired is in excess of of the the the the aggregate consideration transferred the the the the Group re-assesses whether it it has correctly identified all all of of the the the assets acquired and and all all of of the the the liabilities assumed and and reviews the the the the procedures used to to measure the the the the amounts to to be recognised at at the the the the acquisition date If the the the the re-assessment still results in an an excess of of the the the the fair value of of net assets acquired over the the the the aggregate consideration transferred then the the the the gain is is recognised in profit or loss UBP INTEGRATED REPORT 2020
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