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Notes to the Consolidated Financial Statements


               31st March 2017


               2   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)


                   2.2  Subsidiaries (Continued)

                       2.2.1 Consolidation (Continued)

                            (b)  Changes in ownership interests in subsidiaries without change of control


                                 Transactions  with  non-controlling  interests  that  do  not  result  in  loss  of  control  are
                                 accounted for as equity transactions – that is, as transactions with the owners in their
                                 capacity  as  owners.  The  difference  between  fair  value  of  any  consideration  paid  and
                                 the  relevant  share  acquired  of  the  carrying  amount  of  net  assets  of  the  subsidiary  is
                                 recorded  in  equity.  Gains  or  losses  on  disposals  to  non-controlling  interests  are  also
                                 recorded in equity.

                            (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.
















         56    ALCO HOLDINGS LIMITED  ANNUAL REPORT 2017
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