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97
Maxis Berhad
Annual Report 2014
Notes to the
Financial Statements
31 December 2014
3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(a) Basis of consolidation (continued)
(i) Subsidiaries (continued)
If the business combination is achieved in stages, the acquisition-date fair value of the acquirer’s previously held equity interest
in the acquiree is re-measured to fair value at the acquisition date, any gains or losses arising from such re-measurement are
recognised in the statement of profit or loss.
Any contingent consideration to be transferred by the Group is recognised at fair value at the acquisition date. Subsequent
changes to the fair value of the contingent consideration that is deemed to be an asset or liability is recognised in accordance
with MFRS 139 either in the statement of profit or loss or as a change to other comprehensive income. Contingent consideration
that is classified as equity is not re-measured, and its subsequent settlement is accounted for within equity.
Goodwill is initially measured as the excess of the aggregate of the consideration transferred, the amount of any non-
controlling interest in the acquiree and the acquisition-date fair value of any previous equity interest in the acquiree over the
fair value of the net identifiable assets acquired. If the total of consideration transferred, non-controlling interest recognised
and previously held interest measured is less than the fair value of the net assets of the subsidiary acquired, in the case of a
bargain purchase, the difference is recognised directly in the statement of profit or loss. See accounting policy Note 3(d)(ii) on
goodwill.
Inter-company transactions, balances and unrealised gains or losses on transactions between Group companies are eliminated.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by
the Group.
All earnings and losses of the subsidiary are attributed to the parent and the non-controlling interests, even if the attribution
of losses to the non-controlling interests results in a debit balance in the shareholders’ equity. Profit or loss attributable to
non-controlling interests for prior years is not restated.
(ii) Changes in ownership interests in subsidiaries without change of control
Transactions with non-controlling interests that do not result in loss of control are accounted for as equity transactions – that
is, as transactions with the owners in their capacity as owners. The difference between fair value of any consideration paid
and the relevant share acquired of the carrying value of net assets of the subsidiary is recorded in equity. Gains or losses on
disposals to non-controlling interests are also recorded in equity.
(iii) Disposal of subsidiaries
When the Group ceases to have control, any retained interest in the entity is re-measured to its fair value at the date when
control is lost, with the change in carrying amount recognised in the statement of profit or loss. 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 income in respect of that entity are
accounted for as if the Group had directly disposed of the related assets or liabilities. This may mean that amounts previously
recognised in other comprehensive income are reclassified to the statement of profit or loss.
