LensCrafters 2015 Annual Report Download - page 98

Notes to the consolidated financial statement as of December 31, 2015 Page 4 di 68
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% and 50% 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.
Investments in associates are tested for impairment in case there are indicators that their recoverable amount is lower than their
carrying value.
Other companies
Investments in entities in which the Group does not have either control or significant influence, generally with ownership of
less than 20%, are originally recorded at cost and subsequently measured at fair value. Changes in fair value are recorded in the
consolidated statement of comprehensive income.
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;
(b) income and expenses for each consolidated statement of income are translated at average exchange rates
(unless this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in
which case income and expenses are translated at the rate on the dates of the transactions); and