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AEMULUS HOLDINGS BERHAD
TA R G E T I N G T H E B U L L’ S E Y E
3. SIGNIFICANT ACCOUNTING POLICIES
The following accounting policies adopted by the Group and by the Company are consistent with those adopted in the
previous financial years unless otherwise indicated below.
3.1 Basis of Consolidation
(i)
Subsidiaries
Subsidiaries are entities, including structured entities, controlled by the Company. 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 Group controls an entity when it is exposed, 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. Potential voting rights
are considered when assessing control only when such rights are substantive. The Group also considers it
has de facto power over an investee when, despite not having the majority of voting rights, it has the current
ability to direct the activities of the investee that significantly affect the investee’s return.
Investment in subsidiary is measured in the Company’s statement of financial position at cost less any
impairment losses, unless the investment is classified as held for sale or distribution. The cost of investments
includes transaction costs.
Upon disposal of investment in a subsidiary, the difference between the net disposal proceeds and its carrying
amount is recognised in profit or loss.
(ii) Business combination
Business combinations are accounted for using the acquisition method from the acquisition date, which is the
date on which control is transferred to the Group.
For new acquisitions, the Group measures the cost of goodwill at the acquisition date as:
• the fair value of the consideration transferred, plus
• the recognised amount of any non-controlling interest in the acquiree plus
• if the business combination is achieved in stages, the fair value of the existing equity interest in the
acquiree, less
• the net recognised amount at fair value of the identifiable assets acquired and liabilities assumed.
When the excess is negative, a bargain purchase gain is recognised in profit or loss.
For each business combination, the Group elects whether to recognise non-controlling interest in the
acquiree either at fair value, or at the proportionate share of the acquiree’s identifiable net assets at the
acquisition date.
Transaction costs, other than those associated with the issue of debt or equity securities, that the Group
incurs in connection with a business combination are expensed as incurred.
(iii) Combination through merger
The acquisition of Aemulus Corporation Sdn. Bhd. is accounted for using the merger accounting principle.
Accordingly, the results of subsidiary are presented as if the merger had been effected throughout the years
under review. The assets and liabilities combined are accounted for based on the carrying amounts from
the perspective of the common control shareholder at the date of merger. On consolidation, the cost of
the merger is cancelled with the values of the shares received. Any resulting debit difference is adjusted
against any suitable reserve. Any share premium, capital redemption reserve and any other reserves which
are attributable to share capital of the merged entities, to the extent that they have not been capitalised by
a debit difference, are reclassified and presented as movement in other capital reserves.
NOTES TO THE FINANCIAL STATEMENTS
(Cont’d)
– 30 SEPTEMBER 2016