Integrated Reports Senwesbel Consolidated Financial Statements 2018 - Page 67

2. SIGNIFICANT ACCOUNTING POLICIES 2.1 BASIS OF CONSOLIDATION The consolidated financial statements comprise of the financial statements of Senwesbel Ltd and its subsidiary, Senwes (“Senwes”), Senwes’ joint ventures and associate as at 30 April 2018. Control is achieved when the group is exposed, or has rights to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Specifically, the group controls an investee if and only if the group has: • Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the investee); • Exposure, or rights, to variable returns from its involvement with the investee; and • The ability to use its power over the investee to affect its returns. When the group has less than a majority of the voting or similar rights of an investee, the group considers all relevant facts and circumstances in assessing whether it has power over an investee, including: • The contractual arrangement with the other vote holders of the investee; • Rights arising from other contractual arrangements; and • The group’s voting rights and potential voting rights. The group reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control. Consolidation of a subsidiary begins when the group obtains control over the subsidiary and ceases when the group loses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the year are included in the statement of comprehensive income from the date the group gains control until the date the group ceases to control the subsidiary. The financial statements of the subsidiaries are prepared for the same reporting period as the holding company, using consistent accounting policies. All intragroup balances, transactions, unrealised gains and losses resulting from intragroup transactions and dividends are eliminated. Non-controlling interest’s share of total comprehensive income within a subsidiary is attributed to the non-controlling interest, even if that results in a deficit balance. For purchases of additional interests in subsidiaries from non-controlling interests without loss of control, the difference between any consideration paid and the relevant share acquired of the carrying value of net assets of the subsidiary is added to, or deducted from, equity. For disposals of non-controlling interests, differences between any proceeds received and the relevant share of non-controlling interests are also recorded in equity. Where the group loses control over a subsidiary, it: • Derecognises the assets (including goodwill) and liabilities of the subsidiary; • Derecognises the cumulative translation differences recorded in equity; • Derecognises the carrying amount of any non-controlling int W&W7C( &V676fW2FR6&Rb6VG2&WfW6ǒ&V6v6VBFW"6&VV6fR6RF&fB"72"&WFVBV&w20&&FS( &V6v6W2FRf"fVRbFR66FW&F&V6VfVC( &V6v6W2FRf"fVRbfW7FVB&WFVC( &V6v6W2&fB"72FffW&V6R&WGvVVFRf"fVRBFRWB6''rVBbFR7V'6F'FFRb72b6G&खfW7FVG27V'6F&W2B6WfV&R6vBf"fVR"BfVGW&W0BfVGW&R2GRbB'&vVVBvW&V'FR'FW2FBfRB6G&bFR'&vVVBfR&vG2FFPWB76WG2bFRBfVGW&RB6G&2FR6G&7GVǒw&VVB6&rb6G&b'&vVVBv6W7G2ǐvVFV662&WBFR&VWfB7FfFW2&WV&RVW266VBbFR'FW26&r6G&FRw&W( 2FW&W7G2দBfVGW&W2&R66VFVBf"'ǖrFRWVGWFBǖrFRWVGWFB66VB2FVbFRw&W( 06&Rb67VVFVB&WFVBV&w2BfVVG2&W6W'fW2g&FRVffV7FfRFFW2v6FR6W2&V6PBfVGW&W2BWFFRVffV7FfRFFW2bF76VFW"FRWVGWFBFRfW7FVBBfVGW&W22Fǒ&V6v6VBFR7FFVVBbf66FB67B7V'6WVVBF7V6FFFRFR6''rVBbFRfW7FVB2FW7FVBvF6vW2FRw&W( 26&RbWB76WG0bFRBfVGW&RvGv&VFrFFRBfVGW&R26VFVBFR6''rVBbFRfW7FVBB2B'F6V@"6W&FVǒFW7FVBf"&VBFR6&RbFR&W7VG2bW&F2bBfVGW&W22&VfV7FVB&fB"72F22FP&fB"72GG&'WF&RFWVGFW'2bBfVGW&W2B2FW&Vf&R&fBgFW"FB6G&ƖrFW&W7G2FP7V'6F&W2bFRBfVGW&W2FW7FVG2&RFRvW&RFR66VFrW&BB66VFrƖ6W2bBfVGW&W2&PBƖRvFF6RbFRw&WvW&R6vRFW"6&VV6fR6RbBfVGW&W2v2&V6v6VBFRw&W&V6v6W2G26&Rb6vW2BF666W2F2vW&RƖ6&RFR7FFVVBb6vW2WVGV&VƗ6VBv2@76W2&W7VFrg&G&67F2&WGvVVFRw&WBBfVGW&W2&RVƖ֖FVBFFRWFVBbFRFW&W7BBfVGW&W26VvW6&VƖ֗FVB&Vrbsc#b4TtU4$TTd45DDTTE2#c