LensCrafters 2011 Annual Report Download - page 185

| 109 >CONSOLIDATED FINANCIAL STATEMENTS - NOTES
of the subsidiary is recorded in equity. Gains or losses on disposals to non-controlling
interests are also recorded in equity.
When the Group ceases to have control or significant influence, any retained interest in
the entity is remeasured to its fair value, with the change in carrying amount recognized
in profit or loss.
Associates
Associates are any entities over which the Group has significant influence but not control,
generally with ownership of between 20 percent and 50 percent of the voting rights.
Investments in associates are accounted for using the equity method of accounting and
are initially recognized at cost.
The Group’s share of its associates’ post-acquisition profits or losses is recognized in the
consolidated statement of income, and its share of post-acquisition movements in other
comprehensive income is recognized in other comprehensive income. The cumulative
post-acquisition movements are adjusted against the carrying amount of the investment.
When the Group’s share of losses in an associate equals or exceeds its interest in the
associate, including any other unsecured receivables, the Group does not recognize further
losses, unless it has incurred obligations or made payments on behalf of the associate.
Unrealized gains on transactions between the Group and its associates are eliminated to the
extent of the Group’s interest in the associates. Unrealized losses are also eliminated unless
the transaction provides evidence of an impairment of the asset transferred. Accounting
policies of associates have been changed where necessary to ensure consistency with the
policies adopted by the Group.
Dilution gains and losses arising in investments in associates are recognized in the
consolidated statement of income.
Other companies
Investments in entities in which the Group does not have either control or significant
influence, generally with ownership of less than 20 percent, are originally recorded at cost
and subsequently measured at fair value.
Translation of the financial statements of foreign companies
The Group records transactions denominated in foreign currency in accordance with IAS
21 – The Effect of Changes in Foreign Exchange Rates.
The results and financial position of all the Group entities (none of which have the currency
of a hyper-inflationary economy) that have a functional currency different from the
presentation currency are translated into the presentation currency as follows:
(a) assets and liabilities for each consolidated statement of financial position presented
are translated at the closing rate at the date of that consolidated statement of financial
position;