/ . 6 8
E U R O S P O R T S G L O B A L L I M I T E D
Notes to
the F iNaNci al statemeNts
3 1 ma r ch 2 0 1 5
2 .
Summa r y o f S i gn i f i c an t ac coun t i ng Po l i c i e s ( Con t ’ d )
business Combinations (Cont’d)
Under the pooling-of-interests method, the combined assets, liabilities and reserves of the pooled enterprises are
recorded at their existing carrying amounts at the date of amalgamation. The excess or deficiency of amount recorded
as share capital issued (plus any additional consideration in the form of cash or other assets) over the amount recorded
for the share capital acquired is to be adjusted to the retained earnings.
During the reporting year, a new subsidiary was incorporated to acquire the assets and liabilities of 3 other external
entities. Such business combinations not under common control are accounted for by applying the acquisition
method as follows.
A business combination is a transaction or other event which requires that the assets acquired and liabilities assumed
constitute a business. It is accounted for by applying the acquisition method of accounting. The cost of a business
combination includes the fair values, at the date of exchange, of assets given, liabilities incurred or assumed, and
equity instruments issued by the acquirer, in exchange for control of the acquiree. The acquisition-related costs are
expensed in the periods in which the costs are incurred and the services are received except for any costs to issue
debt or equity securities are recognised in accordance with FRS 32 and FRS 39. As of the acquisition date, the acquirer
recognises, separately from goodwill, the identifiable assets acquired, the liabilities assumed and any non-controlling
interest in the acquiree measured at acquisition-date fair values as defined in and that meet the conditions for
recognition under FRS 103. If there is gain on bargain purchase, for the gain on bargain purchase a reassessment is
made of the identification and measurement of the acquiree’s identifiable assets, liabilities and contingent liabilities
and the measurement of the cost of the business combination and any excess remaining after this reassessment is
recognised immediately in profit or loss. For business combinations achieved in stages, any equity interest held in the
acquiree is remeasured immediately before achieving control at its acquisition-date fair value and any resulting gain or
loss is recognised in profit or loss.
Where the fair values are measured on a provisional basis they are finalised within one year from the acquisition date
with consequent retrospective changes to the amounts recognised at the acquisition date to reflect new information
obtained about facts and circumstances that existed as of the acquisition date and, if known, would have affected the
measurement of the amounts recognised as of that date.
There was no gain on bargain purchase during the reporting year.
non-Controlling interests
The non-controlling interest is equity in a subsidiary not attributable, directly or indirectly, to the reporting entity as
the parent. The non-controlling interest is presented in the consolidated statement of financial position within equity,
separately from the equity of the owners of the parent. For each business combination, any non-controlling interest in
the acquiree (subsidiary) is initially measured either at fair value or at the non-controlling interest’s proportionate share
of the acquiree’s identifiable net assets. Where the non-controlling interest is measured at fair value, the valuation
techniques and key model inputs used are disclosed in the relevant Note. Profit or loss and each component of
other comprehensive income are attributed to the owners of the parent and to the non-controlling interests. Total
comprehensive income is attributed to the owners of the parent and to the non-controlling interests even if this results
in the non-controlling interests having a deficit balance.
