FGV Annual Report 2014

2 Basis of Preparation (continued) (ii) Standards, amendments to published standards and interpretations to existing standards that are applicable to the Group and the Company but not yet effective and have not yet been early adopted: (continued) Effective for annual periods beginning on or after 1 January 2016 with earlier application permitted • Amendments to FRS 11 ‘Accounting for Acquisitions of Interests in Joint Operations’ • Amendments to FRS 116 ‘PPE’ and FRS 138 ‘Intangible Assets’ – Clarification of acceptable methods of depreciation and amortisation • Amendments to FRS 10 ‘Consolidated Financial Statements’ and FRS 128 ‘Investment in Associates and Joint Ventures’ – Sale or contribution of assets between an investor and its associates/joint ventures • Amendments to FRS 127 ‘Separate Financial Statements’ – Equity accounting in separate financial statements • Annual Improvements to FRSs 2012 – 2014 Cycle (Amendments to FRS 5 ‘Non-current Assets Held for Sale and Discontinued Operations’, FRS 7 ‘Financial Instruments: Disclosures’, FRS 119 ‘Employee Benefits’ and FRS 134 ‘Interim Financial Reporting’) Effective for annual periods beginning on or after 1 January 2017 with earlier application permitted • MFRS 15 ‘Revenue’ • MFRS 141 ‘Agriculture: Bearer Plants’ (effective 1 January 2016, but adopted by the Group after 1 January 2017 upon MFRS adoption) Effective for annual periods beginning on or after 1 January 2018 with earlier application permitted • MFRS 9 ‘Financial instruments’ The effects of the above amendments to published standards are currently being assessed by the Directors. 3 Significant Accounting Policies The principal accounting policies applied in the preparation of financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. (a) Basis of consolidation and investment in subsidiaries The consolidated financial statements include the financial statements of the Company and all its subsidiaries made up to the end of financial year. Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the group. They are deconsolidated from the date that control ceases. Acquisition accounting The acquisition method of accounting is used to account for the acquisition of subsidiaries by the Group. The consideration transferred for the acquisition of a subsidiary is the fair values of the assets transferred, the liabilities incurred to the former owners of the acquiree and the equity interests issued by the Group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Acquisition-related costs are expensed as incurred. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date, irrespective of the extent of the non-controlling interests. The Group recognises any non-current controlling interest in the acquire on an acquisition-by-acquisition basis, either at fair value or at the non-controlling interest’s proportionate share of the recognised amounts of acquiree’s identifiable net assets. At the end of reporting period, non-controlling interests consists of amount calculated on the date of combinations and its share of changes in the subsidiary’s equity since the date of combination. Felda Global Ventures Holdings Berhad pg 178 NOTES TO THE FINANCIAL STATEMENTS For The Financial Year Ended 31 December 2014