Cordlife Group Limited
Annual Report 2016
67
Notes to
The Financial Statements
for the financial year ended 30 June 2016
2.
Summary of significant accounting policies (cont’d)
2.12 Associate (cont’d)
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.
2.13 Financial instruments
(a)
Financial assets
Initial recognition and measurement
Financial assets are recognised when, and only when, the Group becomes a party to the contractual
provisions of the financial instrument. The Group determines the classification of its financial assets at
initial recognition.
When financial assets are recognised initially, they are measured at fair value, plus, in the case of
financial assets not at fair value through profit or loss, directly attributable transaction costs.
Subsequent measurement
The subsequent measurement of financial assets depends on their classification as follows:
(i)
Financial asset at fair value through profit or loss
Financial assets at fair value through profit or loss include financial assets held for trading and
financial asset designated at fair value through profit or loss.
Financial assets held for trading
Financial assets are classified as held for trading if they are acquired for the purpose of selling or
repurchasing in the near term.
