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110
Annual Report
2015
TFRS 13 (revised 2015), ‘Fair value measurement’
is amended to clarify that the portfolio exception in
TFRS 13 applies to all contracts (including non-financial
contracts) within the scope of TAS 39 (when announced)
or IFRS 9 (when announced).
The management is currently assessing the impact of
these financial reporting standards.
b) Financial reporting standards with minor changes
and do not have impact to the Group are as follows:
There are 40 financial reporting standards with minor
changes. The management is currently assessing the
impact of these financial reporting standards.
2.3
GroupAccounting - Investments in subsidiaries
and associates and interests in joint ventures
(1) 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 though 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.
Intercompany transactions, balances and unrealised
gains or loss on transactions between the Group are eliminated.
Accounting policies of subsidiaries have been changed where
necessary to ensure consistency with the policies adopted by
the Group.
In the SET’s separated financial statements, investments
in subsidiaries are accounted for at cost less impairment. Cost
is adjusted to reflect changes in consideration arising from
contingent consideration amendments. Cost also includes direct
attributable costs of investment.
(2) Transactions and non-controlling interests
The Group treats transactions with non-controlling
interests as transactions with the Fund. For purchases
from non-controlling interests, the difference between any
consideration paid and the relevant share acquired of the carrying
value of net assets of the subsidiary is recorded in the Fund.
Gains or losses on disposals to non-controlling interests are
also recorded in the Fund.
(3) Disposal of subsidiaries
When the Group ceases to have control, any retained
interest in the entity is re-measured to its fair value, with the
change in carrying amount recognised in revenues and expenses.
The fair value is the initial carrying amount for the purposes
of subsequently accounting for the retained interest as an
associate, joint venture or financial asset. In addition, any amounts
previously recognised in other comprehensive revenues and
expenses in respect of that entity are accounted for as if the
Group had directly disposed of the related assets or liabilities.
(4) Associates
Associates are all entities over which the Group has
significant influence but not control, generally accompanying
a shareholding of between 20% and 50% of the voting
rights. Investments in associates are accounted for using
the equity method of accounting. Under the equity method,
the investment is initially recognised at cost, and the carrying
amount is increased or decreased to recognise the investor’s share
of the profit or loss of the investee after the date of acquisition.
The Group’s investment in associates includes goodwill identifies
on acquisition.
If the ownership interest in an associate is reduced but
significant influence is retained, only a proportionate share
of the amounts previously recognised in other comprehensive
revenues and expenses is reclassified to revenues and expenses
where appropriate.