Page 170 - UBP - IR2020

FINANCIAL STATEMENTS
Notes to the financial statements
For the year ended June 30 2020
2 ACCOUNTING POLICIES (CONTINUED)
2 3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(h) Investment in subsidiaries
Subsidiaries are those entities controlled by the the Company Control is is achieved when the the company is is exposed to or has right to to variable returns returns from its its investment with the the entity and has the the ability to to affect those returns returns through its its power over the entity Separate financial statements
Investments in in fin subsidiaries
in in fin the the separate financial statements
of of the the Company are carried at at at cost net of of any any impairment Where the carrying amount amount of an an investment is is greater than its estimated recoverable amount amount it it it is is written down immediately to its recoverable amount and the the the difference difference is is is recognised in in profit or loss Upon disposal o of the the the investment the the the difference difference between the the net disposal proceeds and the the carrying amount is is is recognised in in profit or loss (i) Investment in associates
An associate is is an an an entity over which the the Group has significant influence influence Significant influence influence is is the the power to participate in in in the the financial and operating policy decisions of the the investee but is is not control over those policies The considerations made in in in in in determining significant influence are similar to to those necessary to to determine control over subsidiaries
The Group’s investments in in in its associates
are accounted for using the equity method Under the the the equity method the the the investment in in in in an associate is is initially recognised at at cost The carrying amount of the the the investment is is is adjusted to recognise changes in in in the the the Group’s share of of net assets of of the the the associate since the the the acquisition date Goodwill relating to the the the the associate is is is included in in in in in the the the the carrying amount of the the the the investment and is is is neither amortised nor individually tested for impairment The profit or loss reflects the the the the Group’s share o of of of the the the the results o of of of operations o of of of the the the the associate Any change in other comprehensive income income of of those investees is presented as part of of the the the Group’s in in in in other comprehensive income income In addition when there has been a a a a a a a a change change recognised directly in the the the equity of of the the the associate the the the Group recognises its share of of any changes when applicable in in the statement of changes in in equity Unrealised gains and and losses resulting from transactions between the the the Group and and the the the associate are eliminated to the the the extent of the the interest in in the the associate The aggregate of of o of of of o the the the Group’s share of of o of of of o profit profit or or loss loss of of o of of of o an associate is shown on the the the face of of o of of of o the the the statement of of o of of of o profit profit or or loss loss and and other comprehensive income outside operating profit profit and and represents profit profit or loss after tax The financial statements
of the the the associate are are prepared for the the the same reporting period as as the the the Group When necessary adjustments are made to bring the the accounting policies in in in in line with those of the the Group After application of the the the equity method the the the Group determines whether it it is is necessary to recognise an impairment loss on on its its investment in in in in its its associates
At each reporting date the the the the Group determines whether there is objective evidence that the the the the investment in in the associates
is impaired If there is such evidence the the the the the Group calculates the the the the the amount of impairment as the the the the the difference between the the the the the recoverable amount of of o of o the the the associate associate and its carrying value then recognises the the the loss loss as as as ‘Share of of o of o profit profit of of o of o an an associate’ in in profit profit or loss loss 170 - UBP INTEGRATED REPORT 2020