Asus 2014 Annual Report Download - page 162

158
(3) Basis of consolidation
A. Basis for preparation of consolidated financial statements
(A) All subsidiaries are included in the Group’s consolidated financial statements.
Subsidiaries are all entities (including special purpose entities) over which the Group has
the power to govern the financial and operating policies. In general, control is presumed to
exist when the parent owns, directly or indirectly through subsidiaries, more than 50% of
the voting power of an entity. The existence and effect of potential voting rights that are
currently exercisable or convertible have been considered when assessing whether the
Group controls another entity. Subsidiaries are fully consolidated from the date on which
control is transferred to the Group. They are de-consolidated from the date that control
ceases.
(B) Inter-company transactions, balances and unrealized gains or losses on transactions
between companies within the Group are eliminated. Accounting policies of subsidiaries
have been adjusted where necessary to ensure consistency with the policies adopted by the
Group.
(C) Profit or loss and each component of other comprehensive income are attributed to the
owners of the parent and to the non-controlling interests. Total comprehensive income is
attributed to the owners of the parent and to the non-controlling interests even if this results
in the non-controlling interests having a deficit balance.
(D) Changes in a parent’s ownership interest in a subsidiary that do not result in the parent
losing control of the subsidiary (transactions with non-controlling interests) are accounted
for as equity transactions, i.e. transactions with owners in their capacity as owners. Any
difference between the amount by which the non-controlling interests are adjusted and the
fair value of the consideration paid or received is recognized directly in equity.
(E) When the Group loses control of a subsidiary, the Group remeasures any investment
retained in the former subsidiary at its fair value. Any difference between fair value and
carrying amount is recognized in profit or loss. All amounts previously recognized in other
comprehensive income in relation to the subsidiary are reclassified to profit or loss, on the
same basis as would be required if the related assets or liabilities were disposed of. That is,
when the Group loses control of a subsidiary, all gains or losses previously recognized in
other comprehensive income in relation to the subsidiary should be reclassified from equity
to profit or loss, if such gains or losses would be reclassified to profit or loss when the
related assets or liabilities are disposed of.