ifrs-full:DescriptionOfOtherAccountingPoliciesRelevantToUnderstandingOfFinancialStatements
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Basis of consolidation
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The consolidated financial statements incorporate the financial statements of the Company and an entity controlled by the Company (its subsidiary).
Control is achieved when the Company:
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has power over the investee;
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is exposed, or has rights, to variable returns from its involvement with the investee; and
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has the ability to use its power to affect its returns. Substantive rights held by the Group and others are taken into account when assessing control.
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Income and expenses of subsidiaries acquired or disposed of during the year are included in the consolidated statement of comprehensive income from the effective date of acquisition and up to the effective date of disposal, as appropriate.
When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the other members of the Group.
All intra-group transactions, balances, income and expenses are eliminated in full on consolidation.
Transactions with non-controlling interests while retaining control are accounted for as equity transactions. Any difference between the consideration paid or received and the change in non-controlling interests is included in the owners’ share in equity of the Company directly in retained earnings.
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(2) |
Non-controlling interest
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Total comprehensive income of subsidiaries is attributed to the owners of the Company and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.
Non-controlling interests comprise the equity of a subsidiary that cannot be attributed, directly or indirectly, to the parent company and they include additional components such as: the equity component of convertible debentures of subsidiaries, share-based payments that will be settled with equity instruments of subsidiaries and share options of subsidiaries.