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Financial statements Notes to the consolidated financial statements
2. Basis of preparation
In particular, information about assumptions and estimation uncertainties and critical judgements in applying accounting policies
that have the most significant effect on the amounts recognised in the consolidated financial statements are described in the
following notes:
Note 6 Acquisitions and disposals of subsidiaries and non-controlling interests
Note 15 Intangible assets
Note 16 Investments in associates and joint ventures
Note 17 Other investments
Note 18 Deferred tax assets and liabilities
Note 28 Employee benefits
Note 29 Share-based payments - Long-Term Incentive Plan
Note 30 Provisions
Note 32 Financial risk management and financial instruments
Note 34 Contingencies.
(e) Changes in accounting policies
Accounting for business combinations
From 1 January 2010, the Group has applied IFRS 3 Business Combinations (2008) in accounting for business combinations.
The change in accounting policy has been applied prospectively and has no impact on Earnings per Share.
For acquisition on or after 1 January 2010, the Group measures goodwill at the acquisition date as the fair value of the consideratio
transferred plus the fair value of any previously-held equity interest in the acquiree and the recognised amount of any non-controllin
interests in the acquiree, less the net recognised amount (generally fair value) of the identifiable assets acquired and liabilities
assumed. When the excess is negative, a bargain purchase gain is recognised immediately in profit or loss.
The consideration transferred does not include amounts related to the settlement of pre-existing relationships. Such amounts are
generally recognised in profit or loss.
Costs related to the acquisition, other than those associated with the issue of debt or equity securities, that the Group incurs in
connection with a business combination are expensed as incurred.
Any contingent consideration payable is recognised at fair value at the acquisition date. If the contingent consideration is classified
as equity, it is not remeasured and settlement is accounted for within equity. Otherwise, subsequent changes to the fair value of th
contingent consideration are recognised in profit or loss.
Accounting for acquisitions of non-controlling interests
From 1 January 2010 the Group has applied IAS 27 Consolidated and Separate Financial Statements (2008) in accounting for
acquisitions of non-controlling interests. The change in accounting policy has been applied prospectively and has no impact
on Earnings per Share.
Under the new accounting policy, acquisitions of non-controlling interests are accounted for as transactions with owners in their
capacity as owners and therefore no goodwill is recognised as a result of such transactions. The adjustments to non-controlling
interests are based on a proportionate amount of the net assets of the subsidiary.
Previously, goodwill was recognised on the acquisition of non-controlling interests in a subsidiary, which represented the excess of
the cost of the additional investment over the carrying amount of the interest in the net assets acquired at the date of the transactio
Other standards and interpretations
Other standards and interpretations effective from 1 January 2010 did not have a significant impact on the Company.
