KINGSMEN CREATIVES LTD
ANNUAL REPORT
2014
49
2.
Summary of significant accounting policies (cont’d)
Non-controlling interests
Non-controlling interest is equity in a subsidiary not attributable, directly or indirectly, to the Group 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 Company. 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. Profit or loss and each component of other comprehensive
income are attributed to the owners of the Company and to the non-controlling interests. Total comprehensive
income is attributed to the owners of the Company and to the non-controlling interests even if this results in the non-
controlling interests having a deficit balance.
Goodwill
Goodwill is an asset representing the future economic benefits arising from other assets acquired in a business
combination that are not individually identified and separately recognised. Goodwill is recognised as of the acquisition
date and measured as the excess of (a) over (b); (a) being the aggregate of: (i) the consideration transferred measured
at acquisition date fair value; (ii) the amount of any non-controlling interest in the acquiree measured either at fair
value or at the non-controlling interest’s proportionate share of the acquiree’s net identifiable assets; and (iii) in a
business combination achieved in stages, the acquisition date fair value of the acquirer’s previously held equity
interest in the acquiree; and (b) being the net of the identifiable assets acquired and the liabilities assumed measured
at acquisition date fair values in accordance with FRS 103 Business Combinations.
After initial recognition, goodwill acquired in a business combination is measured at cost less any accumulated
impairment losses. Goodwill is not amortised. Irrespective of whether there is any indication of impairment, goodwill
is tested for impairment at least annually. Goodwill impairment is not reversed in any circumstances.
For the purpose of impairment testing and since the acquisition date of the business combination, goodwill is allocated
to each cash-generating unit, or groups of cash-generating units that are expected to benefit from the synergies of
the business combination, irrespective of whether other assets or liabilities of the acquiree were assigned to those
units or groups of units. Each unit or group of units to which the goodwill is so allocated represents the lowest level
within the Group at which the goodwill is monitored for internal management purposes and is not larger than a
segment.
Goodwill and fair value adjustments arising on the acquisition of foreign operations on or after 1 January 2005 are
treated as assets and liabilities of the foreign operations and are recorded in the functional currency of the foreign
operations and translated in accordance with the accounting policy on translation of financial statements of other
entities.
Goodwill and fair value adjustments which arose on the acquisition of foreign operations before 1 January 2005 are
deemed to be assets and liabilities of the Company and are recorded in SGD at the exchange rates prevailing at the
date of acquisition.
Property, plant and equipment
Property, plant and equipment are carried at cost on initial recognition and after initial recognition, other than
freehold land, at cost less any accumulated depreciation and accumulated impairment losses. The carrying amounts
of property, plant and equipment are reviewed for impairment when events or changes in circumstances indicate
that the carrying amounts may not be recoverable.
Cost includes acquisition cost, borrowing cost capitalised and any cost directly attributable to bringing the asset
or component to the location and condition necessary for it to be capable of operating in the manner intended by
management. Subsequent costs are recognised as an asset only when it is probable that future economic benefits
associated with the item will flow to the Group and the cost of the item can be measured reliably. All other repairs
and maintenance are charged to profit or loss when they are incurred.
Notes to the Financial Statements
31 December 2014
