ENRA Group Berhad Annual Report 2020

ENRA Group Berhad - Annual Report 2020 88 NOTES TO THE FINANCIAL STATEMENTS 31 March 2020 6. INVESTMENT IN A JOINT VENTURE (Cont’d) Details of the joint venture is as follows: Name of company Effective interest in equity Principal activities 2020 % 2019 % ENRA Emrail Sdn. Bhd. 51 51 Intended business has yet to commence A joint venture is a contractual arrangement whereby two or more parties undertake an economic activity that is subject to joint control, where the strategic financial and operating decisions relating to the activity require the unanimous consent of the parties sharing control. Investment in a joint venture is accounted for in the consolidated financial statements using the equity method less any impairment losses. The consolidated financial statements include the Group’s share of the profit or loss and other comprehensive income of the equity accounted joint venture, after adjustments, if any, to align the accounting policies with those of the Group, from the date that significant influence commences until the date that significant influence ceases. When the Group’s share of losses exceeds its interests in an equity accounted joint venture, the carrying amount of that interests including any long-term investments is reduced to zero, and the recognition of further losses is discontinued except to the extent that the Group has an obligation or has made payments on behalf of the investee. 7. INVESTMENTS IN SUBSIDIARIES Company 2020 RM’000 2019 RM’000 Unquoted equity shares, at cost 15,147 15,147 Less: Impairment losses - - 15,147 15,147 Equity contributions to subsidiaries 64,334 53,064 79,481 68,211 a. A subsidiary is an entity in which the Group and the Company are exposed, or have rights, to variable returns from its involvement with the subsidiary and have the ability to affect those returns through its power over the subsidiary. An investment in subsidiary, which is eliminated on consolidation, is stated in the separate financial statements of the Company at cost less accumulated impairment losses, if any. Put options written over non-controlling interests on the acquisition of subsidiary shall be included as part of the cost of investment in the separate financial statements of the Company. Subsequent changes in the fair value of the written put options over non-controlling interests shall be recognised in profit or loss. Investments accounted for at cost shall be accounted for in accordance with MFRS 5 Non-current Assets Held for Sale and Discontinued Operations when they are classified as held for sale (or included in a disposal group that is classified as held for sale) in accordance with MFRS 5.