2. Summary of material accounting policies (cont’d.) 2.5 Basis of consolidation (cont’d.) Generally, there is a presumpঞon that a majority of voঞng rights results in control. To support this presumpঞon and when the Group has less than a majority of the voঞng rights or similar rights of an investee, the Group considers all facts and circumstances in assessing whether the Group's voঞng rights in the investee are sufficient to give it power over the investee, including: (i) The contractual arrangements with the other vote holders of the investee; (ii) Rights arising from other contractual arrangements; and (iii) The Group's voঞng rights and potenঞal voঞng rights. The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control. Consolidaঞon of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. Assets, liabiliঞes, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated financial statements from the date the Group gains control unঞl the date the Group ceases to control the subsidiary. Profit or loss and each component of other comprehensive income ("OCI") are aributed to the equity holders of the parent of the Group and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounঞng policies in line with the Group's accounঞng policies. All intra- group assets and liabiliঞes, equity, income, expenses and cash flows relaঞng to transacঞons between the members of the Group are eliminated in full on consolidaঞon. A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transacঞon. If the Group loses control over a subsidiary, it derecognises the assets and liabiliঞes, non-controlling interests and other components of equity, while any resultant gain or loss is recognised in profit or loss. Any investment retained is recognised at fair value. 2.6 Investment in subsidiaries In the Company's separate financial statements, investment in subsidiaries is stated at cost less accumulated impairment loss, if any. On disposal of such investment, the difference between the net disposal proceed and its carrying amount is included in profit or loss. 2.7 Investment in joint ventures In the Company's separate financial statements, investment in joint ventures is stated at cost less impairment losses, if any. The Group recognises its interest in joint ventures using the equity method in the consolidated financial statements. Distribuঞon received from joint ventures reduce the carrying amount of the investment. Unrealised gains on transacঞons between the Group and its joint ventures are eliminated to the extent of the Group’s interest in the joint ventures. Unrealised losses are also eliminated unless the transacঞon provides evidence of impairment of the asset transferred. The results and reserves of joint ventures are accounted for in the consolidated financial statements based on audited financial statements and prepared using accounঞng policies that conform to those used by the Group for like transacঞons in similar circumstances. notes to the financial statements 31 march 2025 (cont’d.) 166 MATRIX CONCEPTS HOLDINGS BERHAD INTEGRATED ANNUAL REPORT 2025 07 FINANCIAL STATEMENTS
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