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CORDLIFE GROUP LIMITED
| ANNUAL REPORT 2015
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2015
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(CONTINUED)
2.4 Basis of consolidation and business combinations
(Continued)
(c)
Business combinations from 1 July 2010
(Continued)
The Group elects for each individual business combination, whether non-controlling interest
in the acquiree (if any), that are present ownership interests and entitle their holders to a
proportionate share of net assets in the event of liquidation, is recognised on the acquisition date
at fair value, or at the non-controlling interest’s proportionate share of the acquiree’s identifiable
net assets. Other components of non-controlling interests are measured at their acquisition date
fair value, unless another measurement basis is required by another FRS.
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.
(d)
Business combinations prior to 1 July 2010
In comparison to the above mentioned requirements, the following differences applied:
Business combinations are accounted for by applying the purchase method. Transaction costs
directly attributable to the acquisition formed part of the acquisition costs. The non-controlling
interest (formerly known as minority interest) was measured at the proportionate share of the
acquiree’s identifiable net assets.
Business combinations achieved in stages were accounted for as separate steps. Adjustments to
those fair values relating to previously held interests are treated as a revaluation and recognised
in equity. Any additional acquired share of interest did not affect previously recognised goodwill.
When the Group acquired a business, embedded derivatives separated from the host contract
by the acquiree are not reassessed on acquisition unless the business combination results in
a change in the terms of the contract that significantly modifies the cash flows that would
otherwise be required under the contract.
Contingent consideration was recognised if, and only if, the Group had a present obligation,
the economic outflow was more likely than not and a reliable estimate was determinable.
Subsequent adjustments to the contingent consideration were recognised as part of goodwill.
