ANNUAL REPORT 2016
50
Techno
Dex
Berhad
(627634-A)
4. SIGNIFICANT ACCOUNTING POLICIES (continued)
4.2 BASIS OF CONSOLIDATION (continued)
(c) Changes In Ownership Interests In Subsidiaries Without Change of Control
All changes in the parent’s ownership interest in a subsidiary that do not result in a loss of control are
accounted for as equity transactions. Any difference between the amount by which the non-controlling
interest is adjusted and the fair value of consideration paid or received is recognised directly in equity of
the Group.
(d) Loss of Control
Upon the loss of control of a subsidiary, the Group recognises any gain or loss on disposal in profit or
loss which is calculated as the difference between:-
(i) the aggregate of the fair value of the consideration received and the fair value of any retained interest
in the former subsidiary; and
(ii) the previous carrying amount of the assets (including goodwill), and liabilities of the former subsidiary
and any non-controlling interests.
Amounts previously recognised in other comprehensive income in relation to the former subsidiary
are accounted for in the same manner as would be required if the relevant assets or liabilities were
disposed of (i.e. reclassified to profit or loss or transferred directly to retained profits). The fair value of
any investments retained in the former subsidiary at the date when control is lost is regarded as the fair
value on initial recognition for subsequent accounting under MFRS 139 or, when applicable, the cost on
initial recognition of an investment in an associate or a joint venture.
4.3 GOODWILL
Goodwill is measured at cost less accumulated impairment losses, if any. The carrying value of goodwill is
reviewed for impairment annually. The impairment value of goodwill is recognised immediately in profit or
loss. An impairment loss recognised for goodwill is not reversed in a subsequent period.
Under the acquisition method, any excess of the sum of the fair value of the consideration transferred in the
business combination, the amount of non-controlling interests recognised and the fair value of the Group’s
previously held equity interest in the acquiree (if any), over the net fair value of the acquiree’s identifiable
assets and liabilities at the date of acquisition is recorded as goodwill.
Where the latter amount exceeds the former, after reassessment, the excess represents a bargain purchase
gain and is recognised as a gain in profit or loss.
4.4 FUNCTIONAL AND FOREIGN CURRENCIES
(a) Functional and Presentation Currency
The individual financial statements of each entity in the Group are presented in the currency of the
primary economic environment in which the entity operates, which is the functional currency.
The consolidated financial statements are presented in Ringgit Malaysia (“RM”), which is the Company’s
functional and presentation currency.
NOTES TO THE
FINANCIAL STATEMENTS
(continued)
