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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)
2.12 Associate
An associate is an entity over which the Group has the power to participate in the financial and
operating policy decisions of the investee but does not have control or joint control of those policies.
The Group’s investment in associate is accounted for using the equity method. Under the equity
method, the investment in associate is carried in the statement of financial position at cost plus post-
acquisition changes in the Group’s share of net assets of the associate. Goodwill relating to associate
is included in the carrying amount of the investment and is neither amortised nor tested individually
for impairment. Any excess of the Group’s share of the net fair value of the associate’s identifiable
asset, liabilities and contingent liabilities over the cost of the investment is included as income in the
determination of the Group’s share of results of the associate in the period in which the investment
is acquired.
The profit or loss reflects the share of the results of operations of the associate. Where there has been a
change recognised in other comprehensive income by the associate, the Group recognises its share of
such changes in other comprehensive income. Unrealised gains and losses resulting from transactions
between the Group and the associate are eliminated to the extent of the interest in the associate.
The Group’s share of the profit or loss of its associate is the profit attributable to equity holders of the
associate and, therefore is the profit or loss after tax and non-controlling interests in the subsidiaries
of the associate.
When the Group’s share of losses in an associate equals or exceeds its interest in the associate, the
Group does not recognise further losses, unless it has incurred obligations or made payments on behalf
of the associate.
After application of the equity method, the Group determines whether it is necessary to recognise
an additional impairment loss on the Group’s investment in its associate. The Group determines at
the end of each reporting period whether there is any objective evidence that the investment in the
associate is impaired. If this is the case, the Group calculates the amount of impairment as the difference
between the recoverable amount of the associate and its carrying value and recognises the amount
in profit or loss.
The financial statements of the associate are prepared as of the same reporting date as the Company.
Where necessary, adjustments are made to bring the accounting policies in line with those of the Group.
Upon loss of significant influence over the associate, the Group measures and recognises any retained
investment at its fair value. Any difference between the carrying amount of the associate upon loss of
significant influence and the fair value of the aggregate of the retained investment and proceeds from
disposal is recognised in profit or loss.
