Basic HTML Version
NOTES TO THE FINANCIAL STATEMENTS
Year ended 31 December 2013
2.
Summary of significant accounting policies (cont’d)
2.4
Basis of consolidation and business combinations
Basis of consolidation
(a)
Entities under common control
The consolidated financial statements comprise the financial statements of the Company and its subsidiaries
as at the end of the reporting period. The financial statements of the subsidiaries 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.
All intra-group balances, income and expenses and unrealised gains and losses resulting from intra-group
transactions and dividends are eliminated in full.
Business combinations involving entities under common control are accounted for by applying the pooling
of interest method.
(b)
Other acquisitions
Apart from the above, subsidiaries are consolidated from the date of acquisition, being the date on which
the Group obtains control, and continue to be consolidated until the date that such control ceases.
Losses within a subsidiary are attributed to the non-controlling interest even if that results in a deficit balance.
A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity
transaction. If the Group loses control over a subsidiary, it:
–
De-recognises the assets (including goodwill) and liabilities of the subsidiary at their carrying amounts
at the date when control is lost;
–
De-recognises the carrying amount of any non-controlling interest;
–
De-recognises the cumulative translation differences recorded in equity;
–
Recognises the fair value of the consideration received;
–
Recognises the fair value of any investment retained;
–
Recognises any surplus or deficit in profit or loss;
–
Re-classifies the Group’s share of components previously recognised in other comprehensive income
to profit or loss or retained earnings, as appropriate.
2.5
Functional and foreign currency
(a)
Functional currency
The management has assessed and determined the currency of the primary economic environment in which
the Company operates, i.e. functional currency, to be Singapore Dollars (S$). Revenue and major costs of
providing goods and services including major operating expenses are primarily influenced by fluctuations in S$.
45
Overseas Education Limited AR 2013
INVESTING IN EDUCATION