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2014 ANNUAL REPORT
2 Significant accounting policies
(continued)
2.2 Basis of consolidation
(continued)
Associated companies
Associates are all entities over which the Group has significant influence but not control, generally accompanying a shareholding of between
20% and 50% of the voting rights. The Group’s investments in associates are accounted for under the equity method of accounting. The
investments in associates are carried in the consolidated statement of financial position at cost plus post acquisition changes in the Group’s
share of the associates’net assets, less any impairment in value. The consolidated statement of income reflects the net share of the results of
operations of the associates.
2.3 Changes in accounting policies
i)
New accounting policies/improvements adopted
The accounting policies adopted in the preparation of the consolidated financial statements are consistent with those followed in the
preparation of the Group’s annual financial statements for the year ended September 30, 2013 except for the adoption of new standards
and interpretations noted below:
IFRS 7 - Disclosures - Offsetting Financial Assets and Financial Liabilities (effective January 1, 2013)
These amendments require an entity to disclose information about rights of set-off and related arrangements (e.g. collateral agreements).
The disclosures would provide users with information that is useful in evaluating the effect of netting arrangements on an entity’s
financial position. The new disclosures are required for all recognised financial instruments that are set-off in accordance with IAS 32
Financial Instruments: Presentation. The disclosures also apply to recognised financial instruments that are subject to an enforceable
master netting arrangement or ‘similar agreement’, irrespective of whether they are set-off in accordance with IAS 32. The amendment
only affects disclosures and as such, did not have an impact on the Group’s financial position and performance.
IFRS 10 - Consolidated Financial Statements, IAS 27 Separate Financial Statements (effective January 1, 2013)
IFRS 10 replaces the portion of IAS 27 that addresses the accounting for consolidated financial statements. It also addresses the issues
raised in SIC-12 Consolidation - Special Purpose Entities resulting in SIC-12 being withdrawn. IAS 27, as revised, is limited to the accounting
for investments in subsidiaries, joint ventures and associates in separate financial statements. IFRS 10 does not change consolidation
procedures (i.e. how to consolidate an entity). Rather, IFRS 10 changes whether an entity is consolidated by revising the definition of
control.
IFRS 11 - Joint Arrangements, IAS 28 Investments in Associates and Joint Ventures (effective January 1, 2013)
IFRS 11 replaces IAS 31 Interests in Joint Ventures and SIC-13 Jointly-controlled Entities - Non-monetary Contributions by Venturers. Joint
control under IFRS 11 is defined as the contractually agreed sharing of control of an arrangement, which exists only when the decisions
about the relevant activities require the unanimous consent of the parties sharing control. The reference to ‘control’in ‘joint control’refers
to the definition of ‘control’ in IFRS 10. The adoption of this IFRS had no impact on the financial position or performance of the Group.
IFRS 12 - Disclosure of Interests in Other Entities (effective January 1, 2013)
IFRS 12 applies to an entity that has an interest in subsidiaries, joint arrangements, associates and/or structured entities. Many of the
disclosure requirements of IFRS 12 were previously included in IAS 27, IAS 31 and IAS 28, while others are new. The objective of the new
disclosure requirements is to help the users of financial statements understand the effects of an entity’s interests in other entities on its
financial position, financial performance and cash flows and to understand the nature of and the risks associated with the entity’s interest
in other entities.
