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ANNUAL REPORT 2013
NOTES TO THE FINANCIAL STATEMENTS
MARCH 31, 2013
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
INVESTMENTS IN ASSOCIATES - continued
Any excess of the cost of acquisition over the Group’s share of the net fair value of the identifiable assets, liabilities
and contingent liabilities of an associate recognised at the date of acquisition is recognised as goodwill, which is
included within the carrying amount of the investment.
Any excess of the Group’s share of the net fair value of the identifiable assets, liabilities and contingent liabilities over
the cost of acquisition, after reassessment, is recognised immediately in profit or loss.
The requirements of IAS 39 are applied to determine whether it is necessary to recognise any impairment loss with
respect to the Group’s investment in an associate. When necessary, the entire carrying amount of the investment
(including goodwill) is tested for impairment in accordance with IAS 36 Impairment of Assets as a single asset by
comparing its recoverable amount (higher of value in use and fair value less costs to sell) with its carrying amount.
Any impairment loss recognised forms part of the carrying amount of the investment. Any reversal of that impairment
loss is recognised in accordance with IAS 36 to the extent that the recoverable amount of the investment subsequently
increases.
Upon disposal of an associate that results in the Group losing significant influence over that associate, any
retained investment is measured at fair value at that date and the fair value is regarded as its fair value on initial
recognition as a financial asset in accordance with IAS 39. The difference between the previous carrying amount
of the associate attributable to the retained interest and its fair value is included in the determination of the gain
or loss on disposal of the associate. In addition, the Group accounts for all amounts previously recognised in
other comprehensive income in relation to that associate on the same basis as would be required if that associate
had directly disposed of the related assets or liabilities. Therefore, if a gain or loss previously recognised in other
comprehensive income by that associate would be reclassified to profit or loss on the disposal of the related assets or
liabilities, the Group reclassifies the gain or loss from equity to profit or loss (as a reclassification adjustment) when it
loses significant influence over that associate.
When a group entity transacts with its associate, profits and losses resulting from the transactions with the associate
are recognised in the Group’s financial statements only to the extent of interests in the associate that are not related
to the Group.