LensCrafters 2012 Annual Report Download - page 190

ANNUAL REPORT 2012> 104 |
Intercompany transactions, balances and unrealized gains and losses on transactions
between Group companies are eliminated. Accounting policies of subsidiaries have
been changed where necessary to ensure consistency with the policies adopted by the
Group.
The individual financial statements used in the preparation of the consolidated financial
statements are prepared and approved by the administrative bodies of the individual
companies.
Transactions with non-controlling interests
Transactions with non-controlling interests are treated as transactions with equity owners
of the Group. For purchases from non-controlling interests, the difference between any
consideration paid and the relevant share acquired of the carrying value of net assets
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.