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Cordlife Group Limited
Annual Report 2016
Notes to
The Financial Statements
for the financial year ended 30 June 2016
2.
Summary of significant accounting policies (cont’d)
2.3
Standards issued but not effective (cont’d)
FRS 116
Leases
FRS 116 was issued in June 2016 and establishes a new approach to lease accounting which requires a lessee
to recognise assets and liabilities for the rights and obligations created by leases. FRS 116 is effective for
annual periods beginning on or after 1 January 2019. Earlier application is permitted for entities that apply
FRS 115 Revenue from Contracts with Customers at or before the date of initial application of FRS 116.
Retrospective application is required. The Group is currently assessing the impact of FRS 116 and plans to
adopt the new standard on the required effective date.
2.4
Basis of consolidation and business combinations
(a)
Transfer of entities under common control
The pooling of interest method involves the following:
–
The assets and liabilities of the combining entities are reflected at their carrying amounts.
–
No adjustments are made to reflect the fair values, or recognise any new assets or liabilities.
–
No goodwill is recognised as a result of the combination.
–
Any difference between the consideration paid/transferred and the equity ‘acquired’ is reflected
within the equity as merger reserve.
–
The consolidated statement of comprehensive income reflects the results of the combining the
entities for the full year, irrespective of when the combination took place.
–
Comparatives are presented as if the entities had always been combined since the date the
entities had come under common control.
(b)
Basis of consolidation
Basis of consolidation from 1 July 2010
The consolidated financial statements comprise the financial statements of the Company and its
subsidiaries as at the end of the reporting period. The financial statements of the subsidiaries used
in the preparation of the consolidated financial statements are prepared for the same reporting date
as the Company. Consistent accounting policies are applied to like transactions and events in similar
circumstances.
All intra-group balances, income and expenses and unrealised gains and losses resulting from intra-
group transactions and dividends are eliminated in full.
Subsidiaries are consolidated from the date of acquisition, being the date on which the Group obtains
control, and continue to be consolidated until the date that such control ceases.
Losses within a subsidiary are attributed to the non-controlling interest even if that results in a deficit
balance.
