Singapore Airlines 2014 Annual Report Download - page 112

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NOTES TO THE FINANCIAL STATEMENTS
31 March 2014
SINGAPORE AIRLINES
2 Summary of Significant Accounting Policies (continued)
(c) Standards issued but not yet effective (continued)
Amendments to FRS 36 Recoverable Amount Disclosures for Non-Financial Assets removes the requirement to disclose
the recoverable amount of each cash-generating unit for which the carrying amount of goodwill or intangible assets
with indefinite useful lives allocated to that unit is significant when compared to the entity’s total carrying amount of
goodwill or intangible assets with indefinite useful lives.
Instead, the amendments require entities to disclose the recoverable amount of an asset (including goodwill) for which
an impairment loss was recognised or reversed during the reporting period. The amendments also require additional
information about the fair value measurement when the recoverable amount of impaired assets is based on fair value
less costs of disposal. As this is a disclosure standard, it will have no impact to the financial position and financial
performance of the Group when implemented in 2014.
(d) Basis of consolidation
The consolidated financial statements comprise the separate financial statements of the Company and its subsidiary
companies as at the end of the reporting period. The financial statements of the subsidiary companies used in the
preparation of the consolidated financial statements are prepared for the same reporting date as the Company.
Consistent accounting policies are applied to like transactions and events in similar circumstances. A list of the Group’s
subsidiary companies is shown in Note 23 to the financial statements.
All intra-group balances, transactions, income and expenses and unrealised profits and losses resulting from intra-
group transactions are eliminated in full.
Business combinations are accounted for by applying the acquisition method. Identifiable assets acquired and liabilities
and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition
date. Acquisition-related costs are recognised as expenses in the periods in which the costs are incurred and the
services are received.
When the Group acquires a business, it assesses the financial assets and liabilities assumed for appropriate classification
and designation in accordance with the contractual terms, economic circumstances and pertinent conditions as at the
acquisition date. This includes the separation of embedded derivatives in host contracts by the acquiree.
Any contingent consideration to be transferred by the acquirer will be recognised at fair value at the acquisition date.
Subsequent changes to the fair value of the contingent consideration which is deemed to be an asset or liability, will
be recognised in accordance with FRS 39 either in the profit and loss account or as change to other comprehensive
income. If the contingent consideration is classified as equity, it is not remeasured until it is finally settled within equity.
In business combinations achieved in stages, previously held equity interest in the acquiree are remeasured to fair
value at the acquisition date and any corresponding gain or loss is recognised in the profit and loss account.
The Group elects for each individual business combination, whether non-controlling interest in the acquiree (if any) is
recognised on the acquisition date at fair value, or at the non-controlling interest’s proportionate share of the acquiree’s
identifiable net assets.