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2.
Significant accounting policies (continued)
2.5 Basis of Consolidation and Business Combinations (Continued)
(b)
Business combinations and goodwill
Business combinations are accounted for by applying the acquisition method. Identifiable assets acquired and liabilities
assumed in a business combination are measured initially at their fair values at the acquisition date. Acquisition-related
costs are recognised as expenses in the periods in which the costs are incurred and the services are received.
Any contingent consideration to be transferred by the acquirer will be recognised at fair value at the acquisition date.
Subsequent changes to the fair value of the contingent consideration which is deemed to be an asset or liability, will
be recognised in profit or loss.
In business combinations achieved in stages, previously held equity interests in the acquiree are remeasured to fair
value at the acquisition date.
On an acquisition by acquisition basis, the Group may elect to recognise any non-controlling interest in the acquiree
at the date of acquisition either at fair value or at the non-controlling interest’s proportionate share of the acquiree’s
identifiable net assets.
Any excess of the sum of the fair value of the consideration transferred in the business combination, the amount of
non-controlling interest in the acquiree (if any), and the fair value of the Group’s previously held equity interest in
the acquiree (if any), over the net fair value of the acquiree’s identifiable assets and liabilities is recorded as goodwill.
In instances where the latter amount exceeds the former, the excess is recognised as gain on bargain purchase in
profit or loss on the acquisition date.
Please refer to Note 2.12 for the accounting policy on goodwill impairment.
(c)
Transactions with non-controlling interests
Non-controlling interests represents the equity in subsidiaries not attributable, directly or indirectly, to unitholders of
the Trust.
Changes in the Group’s ownership interest in a subsidiary that do not result in a loss of control over the subsidiary
are accounted for as equity transactions. Any difference between the change in the carrying amounts of the non-
controlling interest and fair value of the consideration paid or received is recognised directly in unitholders’ funds and
attributed to the unitholders of the Trust.
