NOTES TO THE
FINANCIAL STATEMENTS
Year ended 31 December 2014
2
BASIS OF PREPARATION (CONT’D)
2.4 Use of estimates and judgments (cont’d)
If the inputs used to measure the fair value of an asset or a liability might be categorised in different levels of the
fair value hierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair value
hierarchy as the lowest level input that is significant to the entire measurement (with Level 3 being the lowest).
The Group recognises transfers between levels of the fair value hierarchy as of the end of the reporting period
during which the change has occurred.
Further information about the assumptions made in measuring fair values is included in the following notes:
•
Note 4 – fair value determination of investment properties; and
•
Note 24 – valuation of financial instruments.
2.5 Changes in accounting policies
Offsetting of financial assets and financial liabilities
Under the Amendments to FRS 32
Financial Instruments: Presentation – Offsetting Financial Assets and Financial
Liabilities
, to qualify for offsetting, the right to set off a financial asset and a financial liability must not be contingent
on a future event and must be enforceable both in the normal course of business and in the event of default,
insolvency or bankruptcy of the entity and all counterparties.
Refer to Note 6 for the disclosures on offsetting financial assets and financial liabilities.
3
SIGNIFICANT ACCOUNTING POLICIES
The accounting policies set out below have been applied consistently by the Group to all periods in these financial
statements, except as explained in note 2.5, which addresses changes in accounting policies.
3.1 Basis of consolidation
Business combinations
Business combinations are accounted for using the acquisition method in accordance with FRS 103
Business
Combination
as at the acquisition date, which is the date on which control is transferred to the Group.
Subsidiaries
Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has rights
to, variable returns from its involvement with the entity and has the ability to affect those returns through its power
over the entity. The financial statements of subsidiaries are included in the consolidated financial statements from
the date that control commences until the date that control ceases.
The accounting policies of subsidiaries have been changed where necessary to align them with the policies
adopted by the Group.
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A N N U A L R E P O R T 2 0 1 4
