Notes to The
Financial Statements
Year ended 31 December 2015
3 Significant accounting policies
The Group adopted new or revised financial standards and interpretations which become effective during the
year. The initial adoption of these standards and interpretations did not have a material impact on the financial
statements.
The accounting policies set out below have been applied consistently to all periods presented in these financial
statements, and have been applied consistently by the Group.
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.
Transactions eliminated on consolidation
Intra-group balances and transactions, and any unrealised income or expenses arising from intra-group
transactions, are eliminated in preparing the consolidated financial statements.
Accounting for subsidiaries by the Trust
Investments in subsidiaries are stated in the Trust’s statement of financial position at cost less accumulated
impairment losses.
100
ParkwayLife REIT
Annual Report 2015
