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Notes to the Consolidated Financial Statements
31st March 2016
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
2.2 Subsidiaries (Continued)
2.2.1 Consolidation (Continued)
(c) Disposal of subsidiaries
When the Group ceases to have control, any retained interest in the entity is re-
measured to its fair value at the date when control is lost, with the change in carrying
amount recognised in consolidated income statement. The fair value is the initial
carrying amount for the purposes of subsequently accounting for the retained interest
as an associate, joint venture or financial asset. In addition, any amounts previously
recognised in other comprehensive income in respect of that entity are accounted for
as if the Group had directly disposed of the related assets or liabilities. This may mean
that amounts previously recognised in other comprehensive income are reclassified to
consolidated income statement.
2.2.2 Separate financial statements
Investments in subsidiaries are accounted for at cost less impairment. Cost also includes
direct attributable costs of investment. The results of subsidiaries are accounted for by the
Company on the basis of dividend and receivable.
Impairment testing of the investments in subsidiaries is required upon receiving dividends
from these investments if the dividend exceeds the total comprehensive income of the
subsidiary in the period the dividend is declared or if the carrying amount of the investment in
the separate financial statements exceeds the carrying amount in the consolidated financial
statements of the investee’s net assets including goodwill.
2.3 Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to
the chief operating decision-maker. The chief operating decision-makers, who are responsible for
allocating resources and assessing performance of the operating segments, have been identified
as the senior management that make strategic decisions.
ALCO HOLDINGS LIMITED ANNUAL REPORT 2016 37
